Broadcom/VMware Licensing

Plotting the Path Forward

The acquisition of VMware by Broadcom sent seismic waves throughout the industry. It changed the way one of the most popular infrastructure platforms on the planet was licensed, while simultaneously increasing cloud capabilities and costs for many.

While the changes stirred up consternation, they also provide an opportunity for organizations to assess their current environments, optimize their costs, and plot a strategy forward that refocuses their efforts on a business-centric outcomes.

Market Dynamics

2-6✗ Average price increase for VMware customers 

<5% Average price increase for Expedient Enterprise Cloud clients

17% Average price increase for Expedient Private Cloud clients

0% Price increase for clients on Expedient Push Button Diaster Recovery

What’s Changing?

Strategically, Broadcom's goal in acquiring VMware was to diversify and strengthen its portfolio beyond hardware into software, particularly in the cloud computing and enterprise software sectors. Specific changes have led to material cost increases for many.

Shift from perpetual to subscription licensing

  • Shift from capex to opex
  • Access to most recent software versions

Shift from atomic product pricing to bundles

  • Portfolio simplification to VMware Cloud Foundation (VCF)  or VMware vSphere Foundation (VVF) bundles
  • Access to VMware tools and capabilities you didn’t previously have

Shift from licensing sockets to server cores

  • Increased expenses
  • Need for infrastructure reassessment and optimization of your environment

You Have Options.

Do Nothing, Pay the Increase

The least disruptive of the options — no changes to your environment or team’s skill set required — comes at a cost. Specifically, the double- or even triple-digit price increase that many organizations have received in their renewal notices.

Consider a Cloud Service Provider

The option with the most technology upside and lowest cost increase. We are a VMware Cloud Service Provider (VCSP) Pinnacle partner with proven expertise in managing and optimizing VMware environments and the highest level of discounts offered.

Find an Alternative Hypervisor

Nutanix, KVM, or a number of other alternatives are available to migrate your workloads to. Considerations include application compatibility and validation, staff retraining, and potential migration challenges.

Go All-In on the Hyperscale

Take the opportunity to refactor and modernize everything. Then migrate to a hyperscale cloud. Not the choice we’d recommend, as it’s expensive, resource-intense, and will take on average the better part of the next 5+ years.

The Expedient Difference

With over 20 years of experience and 1,500 clients across size and industry, we have the strategic and technical capabilities that organizations need to navigate through uncertainty and challenges, and take a Cloud Different™️ approach to their digital transformation initiatives.

As a full stack cloud service provider, Expedient partners with clients to offer managed services that allow them to focus on their core competencies instead of managing their infrastructure.

By the Numbers

We’ve had countless conversations with organizations and have come up with these 4 scenarios that we come across most often and the indicative costs for a variety of scenarios. Mileage always varies, based on variables for each specific deployment scenario. We have solutioned all scenarios on VMware VCF and on Nutanix. In all cases deploying on Expedient means a savings of over 40% to close to 60%. And the annualized savings for the scenarios range from $64,000 to $385,000!

Annualized Savings

Broadcom VMware numbers chart
Numbers chart

Experts at Work

Having successfully migrated thousands of clients to cloud, our team of architects, engineers, and analysts is on laser-focused IT infrastructure that delivers platform optionality, performance, and cost savings – all of which have become even more important in the wake of the changes to VMware licensing. Our experience is crucial in that it allows us to work with environments of all shapes and sizes and find efficiencies within our platforms most organizations are unable to optimize for. Additionally, our team includes VMware Certified Design Experts — an elite community of only 300 in the world who have earned that distinction.

People at Expedient

Know the numbers, know the facts.

At Expedient, we have a comprehensive suite of calculators and sizing tools that will deliver insights for specific scenarios you have or are considering. We are a curious bunch, ready to roll up our sleeves and share our expertise, insights, and tooling with you.

Expedient respects your right to privacy and we will never sell or share your data. If you have immediate questions or need more information call (877) 570-7827, Monday through Friday 8am – 5pm EST.

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