The acquisition of VMware by Broadcom marks a turning point in the IT industry and is forcing companies to rethink their strategy. This is because the switch from perpetual licences to a subscription-based model and the streamlining of the VMware portfolio require an adjustment to previous infrastructure and licensing strategies.
Changes due to Broadcom: What will happen to the classic licence model?
With its focus on four main divisions - VMware Cloud Foundation, Tanzu, Software Defined Edge and Application Networking and Security - Broadcom is signalling a shift towards modern, cloud-based environments. Companies need to move away from the familiar perpetual licence model and embrace a new era of VMware usage.
Challenges for VMware customers
Customers are now faced with the task of evaluating their current VMware solutions and exploring possible alternatives. Optimisation and consolidation of licences will become a key challenge to avoid future cost increases.
VMware customers must prepare for major changes as the licence model moves from perpetual to subscription. VMware perpetual licences will no longer be offered and existing support contracts will expire and will not be automatically renewed. Almost all offerings are affected, and for users with few servers, vSphere Standard and the vSphere Essential Plus Kit are now available exclusively on a subscription model.
Broadcom has already removed the perpetual licences from the offer and is offering special conditions for customers who switch from a perpetual licence to a subscription. The new licensing models are based on processors and cores.
VMware customers with perpetual licences and active support contracts can continue to use them, but must be prepared that when the existing support contracts expire, support will no longer be provided for the existing perpetual licences.
VMware now offers a drastically reduced product range
The main products are VMware vSphere Foundation (VVF) for traditional on-prem environments and VMware Cloud Foundation (VCF) for the complete VMware platform.
- VVF consists of vSphere Enterprise Plus, vCenter Server Standard, ESXi, Tanzu and Aria Suite Standard and vSAN in a basic version
- VCF includes SDDC, vSphere Enterprise Plus, vCenter Server Standard, ESXi, vSAN Enterprise, NSX Enterprise Plus, Aria Suite Enterprise, Aria Operations for Networks Enterprise and HCX-Enterprise and vSAN in a basic version
- VMware vSphere Standard (VSS) and VMware vSphere Essentials Plus Kit (VVEP) are still available, but have modified package components
How can you prepare?
Inventory: Determine your current VMware inventory and the terms of your contracts to create a sound basis for decision-making.
Needs assessment: Check which VMware products and services are essential for your company and which can be replaced by alternative solutions.
Strategic planning: Develop a long-term IT strategy that takes into account both the technical and economic aspects of the new VMware landscape.
Strategic options for your company
In view of the changes in the VMware portfolio, companies have various strategic options:
Continuing with VMware: For organisations that are closely intertwined with VMware products, it may make sense to evaluate the new subscription model and adopt it if appropriate.
Migration to the public cloud: Companies looking for greater cloud integration can consider migrating their VMware infrastructure to the public cloud. Platforms such as AWS, Azure or Google Cloud are possible destinations here.
Moving to alternative platforms: For some, it may be the right time to move to alternative virtualisation platforms such as Hyper-V, Proxmox or OpenStack, which offer flexibility and potentially cost benefits.
Support from Claranet
With experience from countless VMware, cloud and managed hosting projects, Claranet can guide you through these options. We can assist you in developing and implementing the right strategy for your organisation. With our in-depth knowledge and flexible solutions, we can help you overcome the challenges of Broadcom VMware adoption and future-proof your IT environment.
Claranet Cloud Transformation Services
To support companies in this transformation, Claranet offers "Cloud Transformation Services". These consulting packages build on each other logically and offer customised support at every point of the planned transformation. They help you to understand what measures are required, what potential you can realise and how you can best shape your path with or without VMware.
Our consulting packages include:
- Assessment: Assess your current situation and determine the optimal steps for your cloud transformation.
- Strategy development: Together we develop a roadmap that aligns your business goals with the technological possibilities.
- Implementation planning: We support you in planning and executing the steps required to successfully implement your cloud strategy.
- Supporting assistance: Claranet is at your side throughout the entire transformation process to ensure that you achieve the desired results.
Looking to the future
The IT world is evolving. The acquisition of VMware by Broadcom is a clear sign of the start of a new chapter in cloud technology. Take the opportunity to modernise your IT landscape comprehensively: companies that adapt to the changes early on will benefit from the new opportunities and strengthen their competitiveness.
Stay tuned: our blog series continues. In the next post, you will get a deeper insight into the alternatives and solutions for the current VMware products.
Contact Claranet for a personalised consultation and find out how our Cloud Transformation Services can help you overcome the challenges of the Broadcom-VMware acquisition and prepare your IT for the future.