Broadcom’s acquisition of VMware has left perpetual license holders uncertain about what lies ahead. With VMware’s push to its subscription-based model, bundling of products and significant changes to its partner programs, IT and finance executives are being pressed to adapt quickly – whether by reallocating budgets or reevaluating their overall IT strategy
Read on to learn about the impact of VMware’s licensing changes on perpetual license holders, potential alternatives, and ways you can buy time and take a strategic approach to your hypervisor strategy.
Can you afford the new VMware licensing costs?
VMware is now increasing costs by a reported 3 to 10 times1, and these unexpected expenses will require leaders to address the impact on both their CapEx and OpEx. You likely invested a significant amount of your capital budget into VMware, expecting these investments to pay dividends for years to come. However, this shift will require investments on an on-going basis, a cost that you may not have anticipated.
Balancing operational needs with strategic investments in innovation initiatives that drive future growth and competitiveness will now need to be re-evaluated. With the operational expenses now required to maintain your VMware investments, you’ll need to determine how to allocate your resources to maximize both short-term operational stability with long term innovation potential.
As well, many VMware products will likely not be made available as standalone options anymore. If your organization relies on just one product, you may have no choice but to buy products you do not need as part of VMware’s bundling. This unexpected expense will not be well-received by the budget holder, placing greater scrutiny and strain on the IT budget.
Is a vendor subscription-based model right for you?
Deciding whether a vendor subscription-based model aligns with your organization requires careful consideration. As license costs increase, IT teams must ensure these new expenses bring tangible benefits to the business. According to Rimini Street’s C-Suite imperatives report, only 20% of nearly 1500 global CFOs surveyed believe IT investments demonstrate business value. When considering moving to the new subscription model, IT will need to ensure these investments deliver meaningful value and does not limit their future roadmap.
Most organizations adopted VMware to optimize hardware resources and reduce costs. However, the shift from perpetual licenses to subscriptions raises concerns that the anticipated benefits may not justify the increased costs. While subscription models offer updated features and immediate advantages, they could lead to significant long-term financial implications.
Perpetual license holders will need to make an important decision: stay with their current setup and pay what VMware demands, including the rising cost associated with their new subscription-based model, or consider a proven alternative.
What are my alternatives?
Broadcom’s subscription-based model is not the only choice, there are several alternative paths you should consider.
- Alternative Hypervisors. This option requires product evaluation, migration of workloads, ensuring compatibility, which could potentially take years and significant costs. Although we’ve heard that many of the market players lack feature parity with VMware, which could compromise functionality and performance.
- On-Premises License Support with Rimini Street. This option allows you to quickly stabilize your VMware systems turnkey, with little disruption to your business. Safely and securely maximize the return on your existing VMware investments, ensure business continuity and operational efficiency, enabling transformation on your timeline.
- Self-support. This option offers control over costs. However, securing and managing the right in-house talent and the potential risks associated with downtime could end up costing you more.
Whatever path you choose, downtime of your business-critical applications running on VMware can have a costly business impact. It’s important to have a dedicated support team available round-the-clock to resolve any issues as they arise. Make sure to combine proactive support with responsive troubleshooting to maintain stability and performance of your VMware environment.
Secure your VMware products if you choose not to transition to a subscription model
We’ve had many IT executives come to us expressing concern over no longer receiving VMware patches for vulnerabilities rated less than 9.0 in severity. While Broadcom’s zero-day security patches for vulnerabilities greater than or equal to 9 offer some level of protection, it is essential to supplement and strengthen your overall security posture with comprehensive hardening guides tailored to your specific environment.
Ensure you have access to resources capable of mitigating risks and addressing vulnerabilities outside Broadcom’s coverage scope. It is critical to deploy security measures customized for your enterprise software environment and infrastructure. Partnering with experts deeply knowledgeable in security is essential to support and safeguard your VMware products effectively, saving you from significant cost implications and potential irreversible damage to your corporate brand.
Buy time, and take your next step on your own timeline
Unsure of your next move. You’re not alone! To keep your systems running smoothly while you consider your hypervisor roadmap, engage with trusted advisors who can guide you in ensuring your technology strategy aligns with your business objectives.
Rimini Street’s group of VMware experts can provide you with advice on how to maximize the investments of your existing VMware platforms and offer deep analysis and insight into alternatives, whether that’s lifting and shifting workloads or proactively conducting health checks to identify potential issues before they become a problem.
Learn more: Discover how Rimini Support, Rimini Protect and Rimini Consult, a trio of powerful, proven solutions immediately available for VMware products, can help you take control of your VMware strategy today.