In a significant move that has sent ripples across the IT landscape, Broadcom completed its acquisition of VMware on the 22nd of November 2023. This transformative event heralds a strategic shift that IT managers need to be acutely aware of. In this blog post, we'll delve into the key implications of this acquisition and explore the options available for existing VMware customers.
A Simplified Landscape
One of the immediate changes announced by Broadcom is a substantial simplification of the VMware product portfolio, with changes to licence SKUs which will impact users of vSphere in particular.
‘Essentials’, ‘Enterprise Plus’ and the free ‘vSphere Hypervisor’ have now been discontinued, and vSphere customers will have to choose from one of three base SKUs. Add on components such as vSAN, Site Recovery Manager and more will only be available for the high-end ‘vSphere Foundation’ SKU. This may lead to increased costs.
Shift to Subscription-Based Licensing
The most impactful change for customers is the shift from perpetual licensing to a subscription-based model. Perpetual licensing will no longer be available. This transition brings about not only a change in pricing structure but also potential cost increases for businesses, as subscription-based licensing tends to be pricier in the long run. This will have an impact on customer support renewals as well, as traditional renewals will simply not be available going forward and customers will have to move to the subscription model if they wish to have continued support.
Moreover, the license metric is moving from per CPU to per Core, with a minimum Core count threshold of 16 Cores per CPU. IT managers should carefully evaluate their infrastructure to ensure compliance and anticipate potential changes in licensing costs.
Options for VMware Customers
In light of these changes, existing VMware customers find themselves at a crossroads. They essentially have three options to consider:
Stay with VMware and move to a subscription
Embracing the new subscription model may be the most straightforward path for some businesses, especially those heavily invested in VMware technologies. However, it's crucial to assess the long-term financial implications.
Explore alternative hypervisors
For those willing to consider a change, moving to an alternative virtualization solution becomes a viable option. While this path involves some effort and potentially a learning curve, it provides an opportunity to reassess the IT infrastructure and explore more cost-effective and suitable solutions.
If you’re not sure which option is right for your business, here’s a top level comparison:
| Solution |
Pros |
Cons |
Price |
Support |
| Stay with VMware |
No changes required to your infrastructure |
Licencing and support costs will be higher |
Speak to our experts |
Professionally supported |
| Microsoft Hyper-V |
Potentially more attractive licencing costs. |
Potentially new hosts required and all VM’s will need to be converted to Hyper-V |
Professionally supported |
| KVM |
Is free and open source, which means businesses do not have to pay any licencing fees. |
Must be comfortable and familiar with administering Linux. All VM’s will need to be converted to KVM |
Open-source community support only |
| Nutanix HCI |
Mature, well-supported hypervisor, backed by a stable corporate owner in the form of Cisco |
Costed per node, might not fit for smaller customers. All VM’s will need to be converted to Nutanix. |
Professionally supported |
Migrate to the cloud
Cloud migration is the process of moving data, applications, and other IT resources from on-premises servers to cloud-based platforms. Cloud migration can offer several benefits for businesses, such as reduced costs, increased scalability, improved performance, and greater flexibility. By migrating to the cloud, businesses can lower the capital and operational expenses of maintaining physical servers, hardware, and software licenses, as well as easily adjust to the changing needs of the business, providing more or less resources on demand, without requiring upfront investments or long-term commitments. Cloud platforms can also offer faster and more reliable access to data and applications, as well as enhanced security and backup features. Moreover, cloud platforms can support a variety of applications and services, allowing businesses to choose the best options for their needs and preferences.
Cloud migration is not without challenges and risks, however. Some of the potential drawbacks of cloud migration are complexity, dependency, security, and loss of control. Cloud migration can involve a lot of planning, coordination, and testing, as well as dealing with compatibility, integration, and migration issues. Cloud migration can also increase the reliance on the cloud provider, which can pose problems in case of service outages, disruptions, or changes in pricing or policies. Cloud migration can also expose sensitive data and applications to external threats, as well as require compliance with various regulations and standards. Furthermore, cloud migration can reduce the visibility and control over the IT resources, as well as limit the customization and optimization options.
Probrand's Expert Guidance
At Probrand, we understand that navigating these changes can be challenging for IT managers. Our team of experts is here to provide guidance, helping you understand the implications of the acquisition and explore the most cost-effective and appropriate solutions for your business.
By engaging with our experts, you gain access to valuable insights, ensuring that your IT strategy aligns with your business objectives. Probrand is committed to empowering businesses with the knowledge and support needed to make informed decisions in a rapidly evolving IT landscape.
Conclusion
The VMware acquisition by Broadcom introduces a new era in virtualization, necessitating careful consideration and strategic planning for IT managers. Whether you choose to stay with VMWare or explore alternatives, Probrand is here to assist you every step of the way. Contact our experts today to discuss your options and ensure a seamless transition that aligns with your business needs.