VMware cuts virtualization software price

VMware has cut the price of its GSX Server software, the lower end of two products that let multiple operating systems run on the same hardware. The software now costs $1,400 for a dual-processor server and $2,800 for systems with as many as 32 processors; previously it cost $2,500 for a dual-processor server, $5,000 for a four-processor server and $10,000 for an eight-processor server.

The product competes with Microsoft's newly released Virtual Server 2005. Responding to Microsoft is a "secondary motivation" for the price cuts, which primarily were made in an effort to encourage wider use, the company said.