In EMC/Cisco/VMware vBlock – an Economist’s Perspective, we made the following fundamental points:
- EMC, Cisco and VMware are not going to sell their hardware and software for less when their components are part of a vBlock bundle then when they are sold ala carte to VAR’s and customers.
- However, EMC and Cisco are saying that vBlocks will be less expensive to purchase than competing alternatives
- This will be true because Acadia will pre-integrate the EMC, Cisco and VMware components for less cost to the customer (due to having a leveraged, scalable and repeatable process for doing so) than the typical VMware VAR will be able to deliver.
- Therefore the “cheaper price” comes from driving down some of the services costs associated with implementing vBlocks at the expense of the VMware VAR channel.