A Strategic Turning Point Shaking Businesses
VMware and Broadcom
In 2021, Broadcom, known for its strategic acquisitions in the technology industry, added VMware to its portfolio. VMware, a long-standing leader in virtualization with almost half of the global market and a renewal rate of 95%, offered solutions recognized for their robustness and flexibility. However, this acquisition led to a strategic reorientation of services, including a major overhaul of licensing policies and, consequently, pricing.
Major Impacts for Businesses
These main changes include the abandonment of perpetual licenses in favor of a subscription model, leading to a significant increase in costs, potentially 3 to 4, or even 10 times the previous levels for some clients. The new model comes with several licensing options, complicating management while creating increased dependency on VMware solutions.
These changes heavily impact business budgets, particularly those of SMEs. Many organizations are now considering leaving the VMware ecosystem, but this decision comes with challenges that can be significant. Indeed, these captive VMware clients will have no choice but to reconsider their overall strategy in IT infrastructure management.
Over time, organizations have not tended to diversify their virtualization environments. This lack of independence now amplifies operational and financial risks for businesses. Additionally, switching to other virtualization solutions often necessitates rethinking the infrastructure and training teams to carefully execute the transition and limit interruptions. Many companies feel cornered, but fortunately, solutions exist.
Alternatives Presented by ITI
ITI offers three major alternatives tailored to the different needs of companies and SMEs. These solutions are recognized for their maturity, reliability, and ability to meet varied needs.
Azure Local (formerly Azure Stack HCI)
This is an integrated hyper-converged solution within the Microsoft Azure ecosystem; ideal for companies already invested in Microsoft technologies. Azure Local relies on years of development and benefits from the proven stability of Microsoft tools. It offers centralized management via Azure Portal and Windows Admin Center and has native integration with tools like Azure Backup, Azure Site Recovery and Azure Virtual Desktop.
The typical use case involves utilizing Azure cloud services. Some clients implement a multi-cloud strategy; therefore, any workload that requires data mobility between Azure and local infrastructure is a suitable opportunity.
This option will be less relevant for companies primarily using AWS alone or with other cloud providers.
Relevant Use Case for Azure Local:
Context:
For companies that already extensively use Microsoft solutions (Azure, Microsoft 365, Windows Server) and want to modernize their infrastructure while reducing their dependency on VMware, this is the most compatible solution with current investments while limiting the impact on IT teams.
Main Benefit:
A transition to Azure Local will allow the company to take advantage of familiar tools like Azure Portal and Windows Admin Center. Additionally, if the company already uses Data Center licenses with Software Assurance, Azure Local will be free and will help reduce its VMware footprint at low costs.
Impacts:
- Smooth transition due to the absence of a significant learning curve for the teams.
- Cost reduction by utilizing existing licenses.
- Simplified infrastructure management with centralized tools.
Listen to our webinar on virtualization with Azure Local ➔
Nutanix AHV
For organizations under AWS or multi-cloud, Nutanix AHV offers a robust platform with great flexibility. Nutanix AHV is a mature solution optimized for hybrid environments, allowing smooth management of workloads. It is ideal for companies with a multi-cloud strategy due to its integrations with AWS, Azure, and other environments.
Nutanix AHV offers a unified interface to manage storage, resources, and virtualization. However, it requires specialized expertise for successful migration and effective support. A reliable partner with a proven track record in critical environments, such as ITI, will be your best ally if you consider this option.
Relevant Use Case for Nutanix AHV:
Context:
For companies and even SMEs with a multi-cloud strategy (AWS and Azure) who see their VMware license costs multiplied by 3 and are looking for an alternative that maintains high flexibility while integrating with their ecosystem.
It will be a preferred choice for vSphere users categorized in the first tier (Tier one) at VMware because, in the new licensing model, they will be forced to switch to VCF (VMware Cloud Foundation), which could multiply the bill by 10.
Main Benefit:
Nutanix AHV is a platform optimized for hybrid environments offering better workload management through the unified interface.
Impacts:
- Significant reduction in operating costs compared to VMware.
- Simplified and centralized management.
Solutions Based on KVM
KVM, an open-source technology, is a more than viable alternative for companies with limited budgets. Its continuous development and widespread adoption testify to its reliability in various contexts. Its reduced costs and simple license management model do not affect its ability to offer customized environments with performance comparable to other solutions.
However, its implementation and support often require specialized skills, which often need to be outsourced. However, companies under Linux RedHat can mitigate their risk by benefiting from Enterprise-level support.
Relevant Use Case for KVM:
Context:
For companies with limited budgets but wanting to free themselves from dependency on VMware. They are looking for an open-source solution capable of offering comparable performance without the high cost of licenses.
Naturally, it is an interesting alternative for companies where a hyper-converged infrastructure is not viable. The reasons can be varied: lack of application support, performance issues related to traditional server architecture (standalone server not distributed).
Main Benefit:
Significant savings due to the absence of owner licenses.
Impacts:
- Maximum flexibility to customize the environment according to needs.
- Proven reliability with performance comparable to paid solutions.
A Transition to Build the Future
Migrating to alternatives from VMware is not just a matter of costs, even if it is often the trigger. It is also an opportunity to modernize infrastructures, increase their agility, and better prepare your organization for future technological evolutions. Each alternative proposed by ITI is proven, mature, and adapted to your context.
By collaborating with a partner like ITI, companies can minimize risks while taking advantage of the benefits of new technologies. Tailored support and technical expertise turn this challenge into a true strategic opportunity.
What to Do in the Short Term?
We have seen that leaving VMware or diversifying your portfolio requires planning and time. In the short term, your company will probably have no choice but to renew these licenses and absorb part of the shock. However, you will need, among other things, to optimize your configurations to reach the new minimum requirement of 16 cores per license. In short, these changes are not just financial. Do not hesitate to call on ITI experts to rationalize your use and work with your team to determine the best migration plan for your organization.
Essential Steps to Prepare and Execute a Transition
Migrating from VMware to another virtualization solution requires careful planning. Good preparation will reduce risks and ensure a smooth and surprise-free transition.
