Broadcom’s recent announcements concerning VMWare have sent ripples of uncertainty through the IT landscape. The company’s significant changes regarding its licensing model, coupled with the end of VMware’s relationship with AWS, has left many businesses pondering their future cloud strategy.
Keep reading to explore Broadcom's new VMWare licensing model and how to proceed with a migration to a cloud computing strategy moving forward.
VMware recently unveiled new products alongside an updated licensing model and price increase which could affect organisations reliant on VMware for their virtualisation needs.
The new products, replacing VMware’s old offerings, include VMware Cloud Foundation and VMware vSphere Foundation, both of which are only available as subscription-based software. Other optional advanced add-ons can be used with these products, but they will no longer be available as standalone solutions.
And unlike the cloud-based products they are replacing, these new offerings are primarily on-premise subscription software and not a like-for-like replacement for the previous cloud-based services.
This new subscription-based model means that businesses will be expected to pay ongoing costs to continue using the software, and there’s no guarantee that these costs won’t increase significantly over time.
Another important factor to note is that there will be additional costs for features that used to be included, which means many organisations will have to reassess their budget allocations.
Alongside their licensing restructure, VMware has removed their sales services from AWS for new customers and renewing subscriptions. All future sales of their products, including VMware Cloud, will now go through Broadcom.
This exit from direct service sales through AWS raises questions about the long-term viability of remaining with VMware, particularly as their services become more expensive and less integrated with popular cloud platforms.
These significant changes present a dilemma: should you continue investing in VMware’s increasingly expensive services or explore alternative solutions?
VMware’s new licensing model, coupled with the end of sales services of VMware Cloud through AWS, has led many companies to make difficult decisions about whether they should consider purchasing VMware's solutions through Broadcom or reevaluate their cloud strategy altogether.
That said, organisations face two primary pathways:
1. Stick with VMware and Embrace Increased Costs:
Some companies have opted to remain with VMware and adapt to their new licensing model.
One benefit of this is that it simplifies the deployment of full-stack environments by eliminating the need to manage multiple licenses for individual components.
While this path does allow for continuity, organisations should anticipate rising costs that come with limited flexibility and innovation.
Increased expenditures without tangible benefits could put pressure on IT budgets and hinder overall business agility.
This is why companies considering adopting this pathway need to employ diligent cost management to avoid budget overruns.
2. Migrate to AWS Completely for Enhanced Benefits:
An alternative is to fully migrate to AWS, which allows organisations to tap into the extensive capabilities of the AWS platform.
By making this transition, businesses can embrace a pay-as-you-go pricing model that eliminates the risks associated with sudden cost increases and offers unparalleled scalability.
This pathway not only addresses current cloud computing needs but also positions organisations for future growth, innovation, and advanced feature access.
All of that taken into consideration, many organisations are choosing the second option and navigating a migration to AWS.
Read our webpage covering all aspects of a VMWare to AWS Cloud Migration
Looking into the benefits of a VMware to AWS Migration more closely shows us enhanced scalability, superior performance, and lower operational costs.
For instance, AWS enables organisations to rapidly adjust their IT infrastructure to meet fluctuating business demands. With the ability to provision resources in near real-time, businesses can quickly expand to accommodate spikes in traffic or scale back during quieter periods.
AWS’s diverse range of cloud services also enables organisations to choose tailor-made solutions that seamlessly integrate into their existing environments. Additionally, businesses gain access to cutting-edge tools and technologies, including Amazon RDS, Amazon S3, and AWS Lambda.
Organisations will also notice enhanced performance through AWS’s global network of data centres, which ensures that applications are hosted in highly available environments.
Operational costs through native AWS can also be mitigated in comparison to VMware offerings, as VMware Cloud on AWS comes with additional VMware licensing and management fees. And with VMWare licence costs increasing massively across the board, migrating workloads from on-premises VMware environments to AWS can lead to substantial cost savings.
With all of this in mind, transitioning to AWS can significantly enable businesses to future-proof their operations by allowing for adaptability and agile responses to market demands.
Considering a migration from VMware to AWS? Our comprehensive guide will navigate you through the process. We’ll delve into common concerns and offer strategic insights, plus walk you through the process of migration.
Simply click below for a comprehensive description of the entire VMware to AWS process and unlock the full potential of your cloud journey.