> What area does VMWare excel so much to justify this pricing power?
My experience is only with VMWare's desktop-virtualization tools, but hands-down they have the best integration features and services, especially for... uh... "retro" small-business computing needs (in my case, it was the only way I could get a VM running Windows Server 2003 to work - which I needed in-order to be able to run a Progress-based CRM).
I find it odd that Microsoft's own virtualization/Hyper-V stuff is useless if you're wanting to run older versions of Windows, especially XP/2000/2003 (as Hyper-V was a post-Vista/WS2008 thing); it's not just the lack of drivers, but the lack of absolutely-essential integration features like USB port forwarding and "real" GPU emulation (because Hyper-V's "Enhanced Session mode" doesn't actually show you the local-console desktop: it's all just using a special mode of RDP).