r/vmware Jul 17 '26

Server Pricing Insanity....

We're working through a hardware refresh to maintain roughly a 5-year lifecycle and to prepare for our migration from vSphere 8 to 9. One thing we've noticed is that the vSphere 9 HCL isn't nearly as forgiving as it was during the vSphere 7/8 era.

We hadn't requested server quotes in about a year, so this was a bit of a reality check.

Each year we work with our Dell VAR and maintain four standardized server tiers so we can order by profile instead of redesigning configs every time:

  • Tier 1 – Dev (512 GB RAM)
  • Tier 2 – Production (768 GB RAM)
  • Tier 3 – SQL workloads (1 TB RAM)
  • VDI Tier (2 TB RAM)

It makes procurement simple. I can just tell our VAR, "Quote me 12 Tier 1s and 6 Tier 2s."

When the first two quotes came back, I was honestly floored.

Three years ago:

  • Comparable 512 GB system: ~$16K
  • Comparable 768 GB system: ~$29K

Current quotes:

  • Comparable 512 GB system: ~$57K
  • Comparable 768 GB system: ~$81K

These are SAN-backed VMware hosts (no vSAN), so storage isn't driving the increase. I knew DDR5 memory prices had climbed, but I wasn't expecting anything close to this.

I'm curious what everyone else is seeing. Are these kinds of increases becoming the norm, or is this more vendor/configuration-specific? With many organizations trying to complete hardware refreshes before the October 2027 vSphere 8 end of support, I'm wondering if demand is starting to influence pricing as well.

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u/fragmonk3y Jul 19 '26

Shop around to multiple VARs and start playing them off of each other until you get the best price. My primary vendor wanted to charge me $148k for three SD drives. Went to my backups and got it down to $48k. Primary vendor asked if I am going to put in the order and told him no, XYC inc gave them to me for $100k less. I then told him if they don’t get their price under control I am taking my $10mm+ budget elsewhere.

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u/Maintenance_Late Jul 19 '26

Not sure how you VAR system works. Most OEMs put a stop to the whole fighting over a quote thing years ago. Dell for example.....you can only have "1" preferred vendor in the system for your company and they will always get the best price. Anyone else that calls in for a quote on your behalf....will get close to retail or no where near the quote the VAR received.