Navigating the New VMware Landscape: Cloud Migration Options and Strategies in the Wake of Broadcom’s Acquisition

Broadcom’s acquisition of VMware in November 2023, and subsequent focus on moving perpetual licenses into a subscription-based model, has far-reaching impacts in the enterprise IT industry.

One VMware customer, AT&T, is actually suing Broadcom over breach of contract. Channel Futures reports that the basis of AT&T’s lawsuit is Broadcom “threatening to withhold essential support services for previously purchased VMware perpetually licensed software unless AT&T capitulates to Broadcom’s demands that AT&T purchase hundreds of millions of dollars’ worth of bundled subscription software and services.”

VMware runs 84% of all hypervisors, according to the report “Hypervisor Market: Global Industry Analysis and Forecast (2024-2030).” With such sweeping changes happening, many organizations are scrambling to decide on their path forward. Do you stay with VMware after your contract is up or do a lift and shift migration to public cloud platforms which have built-in hypervisor capabilities, such as Amazon Web Services (AWS) or Microsoft Azure? Let’s dive into the details of the post-acquisition VMware landscape, your migration options, and other considerations.

The Broadcom Effect: VMware Changes and Challenges

So, what happened after Broadcom acquired VMware on November 22, 2023?

• End of VMware perpetual licensing: The shift away from perpetual licenses to a subscription-based model is forcing organizations to reevaluate their long-term cost structures.
• Massive reduction of the VMware product portfolio: VMware products have dropped from 8,000 SKUs down to 4 core offerings.
• VMware pricing pressure: Customers are reporting substantial cost increases, ranging from 2 to 3 times their previous spending.
• VMware support concerns: According to the report “VMware Acquisition Aftermath,” 36% of respondents were worried about the support quality declining.

This report also found that 38% of organizations plan on moving more workloads to the public cloud, and 33% are planning a complete migration to public cloud services. If you fall into either of these categories, it’s time to start looking into your options.

VMware Cloud Migration Options

AWS VMware Migration Options

• VMware to Amazon Elastic Compute Cloud (EC2): For your Windows or Linux-based VMware workloads, you can do a lift and shift migration to Amazon EC2 for flexibility and access to AWS solutions.
• VMware to AWS Relational Database Service (RDS): Move your databases to AWS RDS, a platform as a service, to simplify your operations and boost performance.

Microsoft Azure VMware Migration Options

• VMware to Azure Virtual Machine (VM): You can lift and shift migrate your workloads to Azure VMs for enhanced flexibility and access to Azure services.
• VMware to Azure Managed Instances/Flexible Server: Move databases to Azure Managed Instance/Flexible Server, a platform as a service, to streamline your database operations and improve scalability.

Overcoming VMware Cloud Migration Hurdles

If you’re going to opt for the migration route, you need to be aware of the roadblocks that may delay or derail the process.

• Time and budget constraints: Many companies lack the resources for a comprehensive migration.
• Lack of in-house skill sets: Your in-house team may have limited migration or public cloud skills when they’ve been working with on-premises VMware workloads.
• Licensing complexities: Windows Server, SQL Server, Oracle databases, and storage costs remain significant factors to address.
• Technical hurdles: Refactoring applications for new environments can be complex and time-consuming, but you can start your cloud journey with a lift and shift migration to avoid part of this challenge.

Strategies for a Successful VMware Migration

Get through these VMware migration challenges with the following strategies.

• Conduct a thorough impact assessment: Evaluate how the Broadcom acquisition affects your VMware strategy and overall IT plans.
• Perform a comprehensive cloud readiness evaluation: Assess which workloads are suitable for cloud migration and which might benefit from alternative solutions.
• Optimize licensing: Look for opportunities to reduce CPU configurations, leverage Bring Your Own License (BYOL) (Bring Your Own License), and optimize Windows, Oracle & SQL Server usage.
• Right-size your resources: Identify over-provisioned resources and outdated hardware that may be incurring unnecessary licensing costs.
• Leverage migration funding and support: Take advantage of programs offered by cloud providers, often accessed via partners such as Datavail, to offset migration costs.
• Fill in resource gaps by working with an experienced partner: An expert cloud migration partner brings you the skillsets and well-oiled strategy needed to pull off successful migrations, as well as helping your in-house team acclimate to the new environment.

The VMware Road Ahead

The VMware landscape is changing rapidly, and you need to make a lot of choices leading up to your renewal. By thoroughly evaluating migration options, assessing workloads, and leveraging expert support, your organization can turn this challenge into an opportunity for modernizing on-premises VMware workloads into the cloud.

Ready to plan your VMware migration? Get in touch with our cloud migration experts today.