Broadcom's VMware Acquisition: A Wake-Up Call

Modernize or Perish - Infrastructure at a Crossroads

The following is Part 2 of a 3 part series focusing on 3 of the most impactful macro technology trends that our industry is facing and their implications for you and your firm’s infrastructure. This post focuses on Broadcom/VMware acquisition and it’s implications.

AI, VMware and Cybersecurity, appear to us at #TenrecX, to be among the most urgent and complex, requiring a level of experience, knowledge and problem solving that we can bring to the table.  We are here to help - please contact a TenrecX Trusted Advisor for more info.

Part 2: Broadcom's VMware Acquisition: A Wake-Up Call

Last year’s acquisition of VMware by Broadcom has sent shockwaves through the tech community. For many organizations, VMware has been the cornerstone of their virtualization strategy. However, the anticipated changes under Broadcom's ownership, particularly the potential for increased costs, altered subscription models and portfolio simplification, are forcing tech leaders to re-evaluate their options.

This acquisition serves as a stark reminder of the risks associated with vendor lock-in. Relying heavily on a single vendor can leave you vulnerable to price hikes, changes in product roadmaps, and reduced or expensive support.

The Implications for Your Data Center:

• Cost Increases: Broadcom's focus on profitability could lead to significant increases in VMware licensing costs, impacting tech budgets as they have ended the sale of perpetual licenses for VMware products, moving entirely to a subscription-based model.
• Reduced flexibility due to portfolio “simplification”: Changes in licensing models may limit your ability to customize your virtualization environment. Specifically, Broadcom is attempting to consolidate and simplify its product portfolio by bundling features/services and reducing SKU sprawl.
• Support Concerns: Potential changes in support structures could impact response times and the overall quality of customer service.

• Increased Audits: With the shift to a subscription model, VMware is conducting more audits to ensure compliance.  The importance of knowing what you have and managing your inventory will become that much more important.  This also adds an administrative burden in reporting.

Exploring Alternatives:

This is the perfect opportunity to consider alternative solutions and data center strategies.

• Hyper-V: Microsoft's Hyper-V is a mature and robust virtualization platform that offers a viable alternative to VMware, especially for those in a Microsoft ecosystem.
• Proxmox VE: An open-source option that's gaining popularity due to its flexibility and cost-effectiveness.
• Cloud-Native Virtualization: Leveraging cloud providers' virtualization services can offer flexibility and scalability.
• Hybrid Managed Services Cloud: Using a managed service provider to manage your virtualization environment, regardless of the platform, can help manage costs and complexity.  Many of the major players in the industry have negotiated better pricing for their VMware workloads than individual organizations could ever dream of, and they are sharing those savings with their clients.

Moving Forward:

Tech leaders must take a proactive approach to cloud services. This includes:

• Conducting a thorough assessment of your VMware environment, including what functions you’re using today, and what functions could create value for you, if implemented.
• Evaluating alternative virtualization solutions.
• Developing a migration plan.
• Negotiating new contracts with VMware or other vendors.
• Considering a public, hybrid or multi-cloud strategy.

The Broadcom acquisition is a wake-up call. It's time to diversify your vendor landscape and build a more resilient and cost-effective virtualization strategy.

At TenrecX, our mission is to help our Clients bridge the gap between complex technology options and real business needs - simplifying their choices.  We are here to ensure you achieve efficiency, scalability and to ultimately succeed.

Get the help you need from an experienced TenrecX advisor to navigate the options with you.  As agnostic technology specialists, TenrecX advisors will work with you to find the right solution regardless of platform, brand or vendor.

Ready to transform your IT strategy? Connect with TenrecX to explore the possibilities.

Simplify.

Scale.

Succeed.

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