Virtualization remains a cornerstone of modern businesses, but the landscape has shifted significantly since Broadcom acquired VMware in 2023. Now, two years later, the impact of this merger is fully unfolding, affecting organizations that rely on virtualization and compelling them to adapt.
In this blog, we’ll examine how Broadcom’s ownership of VMware has transformed virtualization and discuss ways for businesses to navigate these changes.
What has changed for VMware under Broadcom?
Broadcom’s $61 billion acquisition of VMware aimed to redefine the virtualization marketplace by improving efficiency and integrating VMware’s strengths into Broadcom’s larger enterprise.
However, since the deal, several important changes have surfaced.
Increased costs
Since Broadcom acquired VMware, licensing costs have surged between 800% and 1,500%, depending on the product. This confirms concerns that Broadcom’s focus on maximizing recurring revenue will raise costs for customers, especially for smaller businesses with limited IT budgets.
Changes to VMware’s product strategy
Broadcom has prioritized larger clients, investing in high-end solutions such as VMware Cloud Foundation and Tanzu. However, this shift has led to the discontinuation of several features and entire products, leaving many small and medium-sized businesses without the tools they once relied on.
Greater risks of vendor lock-in
As VMware’s tools become more integrated with Broadcom’s hardware and software, businesses face an increasing risk of vendor lock-in. This poses a significant danger, as vendor lock-in can trap businesses into relying solely on one provider, making it costly or difficult to use alternative solutions due to incompatible systems or license restrictions.
How businesses can adapt to these changes to VMware
Despite the challenging changes in the virtualization landscape, there are several proactive steps you can take to adapt and thrive:
Reevaluate your long-term IT strategy
Evaluate your technology needs, identify limitations in current VMware systems, and determine if VMware aligns with your growth plans. Focus on factors such as cost, flexibility, scalability, and future growth potential. These insights will guide your decision on whether to continue with VMware or explore alternative solutions that better meet your needs.
Consider virtualization options
With VMware’s recent updates to its products and pricing, alternative virtualization solutions may offer a more cost-effective option. Microsoft Hyper-V and Citrix Hypervisor, for example, provide strong functionality with predictable pricing, making them appealing options for businesses looking for other powerful solutions.
For companies seeking more flexibility and cost savings, open-source solutions such as OpenStack offer cloud infrastructure capabilities comparable to licensed products, all while eliminating licensing fees and proprietary restrictions, so businesses can fully customize their environments.
Invest in training and upskilling
Offering courses and encouraging certifications in alternative cloud platforms prepares your staff to explore options beyond VMware. It also empowers your business to make informed decisions when shifting or expanding its IT infrastructure.
Explore hybrid and multicloud flexibility
If your business uses VMware to manage systems on site, switching to a hybrid cloud approach can provide more flexibility and reliability. You can keep using your existing systems for tasks they handle well while also integrating cloud services for additional benefits such as better scalability, improved performance, reduced downtime, and enhanced security features. To get the most out of this setup, choose tools that seamlessly integrate both environments.
Build vendor diversification into future IT plans
Consider integrating a more diverse range of vendors into your IT strategy. By diversifying, you can avoid vendor lock-in and access a broader range of solutions, reducing the impact of sudden changes in vendor policies, and enabling better overall flexibility.
Consult experts
To better understand the shifts in virtualization and adapt, consult cloud experts such as Liberty Center One, especially if your team needs specific cloud expertise. Experienced professionals can help your business assess its current IT infrastructure, recommend alternatives to VMware, and guide you through the transition to new virtualization solutions or cloud-native platforms.
Be ready for what’s next in virtualization with Liberty Center One
Ready to embrace the future of virtualization? Connect with the experts at Liberty Center One. Our team specializes in providing tailored solutions to help your business stay ahead of the curve with reliable, scalable, and secure virtualization services. Contact us today to learn how we can support your growth and innovation.