Broadcom and Changes to VMware

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Broadcom’s Acquisition of VMware Sparks Licensing Shift

In a seismic move for the tech industry, Broadcom’s acquisition of VMware has sent shockwaves through the enterprise landscape. With a track record of acquiring and restructuring tech giants like Symantec and CA (Computer Associates), Broadcom’s takeover of VMware has left many in anticipation of what’s to come.

One of the most significant changes is the departure from perpetual licensing models. Gone are the days of perpetual licenses; instead, the focus is squarely on enterprise solutions. This shift signifies a move towards a subscription-based model, aligning with broader industry trends.

Moreover, the landscape of VMware’s product offerings is undergoing a transformation. Carbon Black and Horizon are among the casualties, as Broadcom streamlines VMware’s portfolio. However, the core elements of the Sphere foundation—vCenter, ESXi, and vSAN—are set to endure, ensuring continuity for VMware’s loyal customer base.

As the dust settles, enterprises are left contemplating their options. Some may consider alternatives like Nutanix or Proxmox, while others eye the rising prominence of Kubernetes and Docker, potentially rendering the traditional hypervisor obsolete.

Yet, amidst these changes, it’s essential to note that VMware’s legacy persists. With Azure’s infrastructure relying heavily on Hyper-V, the hypervisor isn’t going extinct anytime soon. On-premises, Azure Stack HCI, built on Hyper-V, remains a robust solution for organizations invested in Microsoft’s ecosystem.

In this dynamic landscape, adaptation is key. As Broadcom steers VMware into a new era, enterprises must evaluate their strategies and embrace the evolving paradigms of virtualization and cloud computing. Stay tuned as we delve deeper into the implications of Broadcom’s acquisition and its ramifications for the future of enterprise IT.

What do the New Broadcom VMware Licensing Models Look Like?

In only the last few weeks this information has changed, so if it goes out of date please comment below and I will update accordingly.

The following are the new VMware Subscription Licence models.

  • VVEP VMware vSphere Essentials Plus (up to 96 Cores up to three hosts, support, and vMotion ) no vSAN
  • VVS VMware vSphere Standard as above but not limited to three nodes and 96 cores.
  • VVF VMware vSphere Foundation includes vSAN (sub 1Tb), DRS, and Distributed Switching.
  • VCF VMware Cloud Foundation – Everything above and +1Tb vSAN, NSX, Advanced Support, and additional add on licences packages i.e. vSAN per Tb
  • VCF for CSP VMware Cloud Foundation for Cloud Service Providers (includes vCloud Director).

VMware Licensing Timescales

  • 01/02/24 – Termination of all new sales/renewals of end-user ELAs and perpetual licenses.
  • 31/03/24 – End of MSP rental period of VMware Cloud Provider Program (VCPP) vRAM based usage model.
  • 01/04/24 – MSP subscriptions move from metered RAM to Per Core upfront licensing.
  • 30/04/24 – End of transition period, all customers on lapsed ELAs must move to new subscriptions.

UK Service Providers and Licensing

At time of writing Broadcom have nominated seven UK Strategic partners to sell VCF for CSP, three have announced this publicly, those being Redcentric, iOmart, and ANS. With the breakneck speed these changes have been bought in, the remainder are probably still deciding what to do next.

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Author: PeteLong

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