Navigating the complex landscape of IT infrastructure can be challenging, especially when unexpected changes disrupt established norms. With Broadcom’s acquisition of VMware, many SMEs have found themselves grappling with steep price hikes and licensing changes. Fear not! There are viable VMware alternatives that can help you maintain your operations without breaking the bank. Let’s dive into four standout options: Proxmox, Microsoft Hyper-V, Cloud-Native VMware, and Azure Stack HCI. 

The Impact of Broadcom’s VMware Overhaul 

Broadcom’s acquisition of VMware has introduced significant price hikes and licensing shifts, hitting SMEs the hardest. Many organisations face price increases of up to 1200%, forcing them to pay for services they do not need [1][2]. A recent survey found that nearly all respondents expected VMware prices to increase, with 73% anticipating more than a 100% price hike under Broadcom’s ownership [3][4]. This has left many SMEs seeking VMware alternatives to avoid these substantial cost increases [5]. 

Viable VMware Alternatives for SMEs 

Given these substantial changes, SMEs should consider exploring cost-effective VMware alternatives that can provide similar functionalities at a lower cost:

 

1. Proxmox: The Open-Source Virtualisation Solution

What It Is: Proxmox VE is an open-source virtualisation management platform designed to manage virtual machines, containers, and storage in a unified interface. It supports both KVM for full virtualisation and LXC for container-based virtualisation. 

Benefits: 

• Low Cost: Open-source nature significantly reduces licensing costs. 

• Flexibility: Supports a wide range of virtualisation technologies and tools. 

• Community Support: Strong community support and extensive documentation. Proxmox also offers enterprise-level support at an additional cost, should you need it. 

• Scalability: Easily scalable to meet the growing needs of SMEs. 

Technical Overview: 

• Virtualisation: Supports KVM and LXC. 

• Management Interface: Web-based interface for managing virtual machines, containers, and storage. 

• Storage Options: Supports various storage types, including local storage, shared storage, and distributed storage systems. 

Why Choose This Option: For cost-conscious SMEs seeking a flexible and scalable virtualisation platform, Proxmox offers a robust solution. Its open-source nature ensures that businesses are not locked into expensive licensing agreements and can maintain control over their infrastructure [6][7].

 

2. Microsoft Hyper-V: The seamless solution for Microsoft ecosystems

What It Is: Hyper-V is suitable for SMEs with a Microsoft-centric IT environment looking for seamless integration with existing Microsoft products. It offers high performance, reliability, and robust support, making it an excellent choice for businesses already invested in Microsoft technologies [8][9][10]. 

Benefits: 

• Integration: Native integration with Windows Server, Active Directory, and other Microsoft tools. 

• Performance: High performance and reliability for virtualised environments. 

• Support: Backed by Microsoft’s extensive support and resources. 

Technical Overview: 

• Management Tools: Managed through Hyper-V Manager, Windows Admin Center, and System Center Virtual Machine Manager (SCVMM). 

• Virtual Switch Manager: Provides network configuration capabilities for virtual environments. 

Why Choose This Option: Hyper-V is ideal for SMEs with a Microsoft-centric IT environment looking for a cost-effective VMware alternative. Its seamless integration with existing Microsoft products can result in lower total costs and simplified management [6][7].

 

3. VMware: The flexible solution leveraging public cloud services.

What It Is: Cloud-Native VMware leverages public cloud services like Oracle Cloud Infrastructure (OCI) and Microsoft Azure to run VMware technology, allowing businesses to maintain their VMware environments while benefiting from the scalability and flexibility of the cloud. 

Benefits: 

• Cost Savings: Significantly reduces capital expenditure on physical hardware and maintenance costs. 

• Scalability: Easily scale resources up or down based on demand. 

• Enhanced Security: Benefit from advanced security features and compliance certifications of major cloud providers. 

• Disaster Recovery: Robust disaster recovery options with cloud-based backups and failover capabilities. 

Technical Overview: 

• Virtualisation: VMware’s virtualisation technology runs on the cloud provider’s infrastructure. 

• Integration: Seamlessly integrates with existing VMware tools and services. 

Why Choose This Option: For SMEs looking to leverage the benefits of cloud computing while still using VMware technology, this option provides a flexible and scalable solution. By moving to cloud-native VMware, businesses can mitigate some of the pricing pressures introduced by Broadcom while maintaining their existing virtualisation environment [6][7].

 

4. Azure Stack HCI: The perfect hybrid solution bridging on-premises and cloud.

What It Is: Azure Stack HCI (Hyper-Converged Infrastructure) is a hyperconverged infrastructure solution from Microsoft that combines the efficiency of Hyper-V with the robust management capabilities of Azure. 

Benefits: 

• Seamless Integration: Tight integration with Azure services for enhanced management and scalability. 

• Cost-Efficiency: Provides a cost-effective on-premises solution with cloud capabilities, reducing the need for extensive physical infrastructure. 

• High Performance: Optimised for running virtualised workloads with high performance and reliability. 

• Unified Management: Azure Stack HCI is automatically registered with Azure Arc, enabling centralised management from the Azure portal. 

Technical Overview: 

• Hyper-Converged Infrastructure: Combines compute, storage, and networking into a single system. 

• Integration with Azure: VMs running on Azure Stack HCI are managed through Azure Arc, providing a unified management experience. 

• Support for Hybrid Deployments: Enables hybrid cloud scenarios, allowing seamless movement of workloads between on-premises and the cloud. 

Why Choose This Option: Azure Stack HCI is ideal for SMEs looking for a robust on-premises solution that integrates seamlessly with Azure for a hybrid cloud approach. It offers the best of both worlds: on-premises control with the power of Azure’s management tools [7][8]. 

Why ADT? 

Navigating these changes can be daunting, but we are here to help. Assured Digital Technologies (ADT) provides expert guidance and solutions tailored to your specific needs. We help you transition smoothly from VMware, optimise your IT infrastructure, and ensure your business remains resilient and competitive in this evolving landscape. 

Our Approach: 

• Comprehensive Assessments: We evaluate your current VMware usage to identify optimisation opportunities and potential cost savings under the new pricing model. 

• Tailored Transition Plans: Our team develops customised roadmaps to help you transition smoothly, whether you choose to stay with VMware or migrate to an alternative solution. 

• Ongoing Support: We offer continuous support and expert advice to help you adapt to ongoing changes and ensure your IT strategy remains aligned with your business objectives. 

Conclusion 

The changes introduced by Broadcom’s acquisition of VMware have significant implications for SMEs. By exploring cost-effective VMware alternatives like Proxmox, Microsoft Hyper-V, Cloud-Native VMware, and Azure Stack HCI, SMEs can navigate these changes effectively and continue to thrive in an evolving digital landscape. 

For more detailed advice on how these changes might affect your specific situation, please get in touch. We’re here to guide you through these transitions and ensure your business remains resilient and competitive. 

Concerned About VMware’s New Pricing and Licence Changes? Book a Free 30-Minute Consultation with our Technical Experts and discover how ADT can reduce your costs while ensuring a smooth transition.

Get in touch

 

Sources 

1. SDXCentral, “What’s up with Broadcom’s VMware price, license changes?”. Available at: https://www.sdxcentral.com/articles/analysis/whats-up-broadcoms-vmware-price-license-changes/2024/06/
2. Tech Monitor, “Was VMware’s takeover by Broadcom a terrible mistake?”. Available at: https://techmonitor.ai/technology/cloud/vmware-takeover-by-broadcom-mistake 
3. Volico, “VMware 10X Price Increase”. Available at: https://www.volico.com/vmware-10x-price-increase-leaves-companies-looking-for-alternatives/ 
4. Redmond Channel Partner, “High Levels of Customer Unease Around VMware-Broadcom Deal: Report”. Available at: https://rcpmag.com 
5. TechRadar, “VMware customers are jumping ship as Broadcom sales continue”. Available at: https://www.techradar.com 
6. CloudBolt Software, “CII Reality Report: VMware Acquisition Aftermath”. Available at: https://www.cloudbolt.io/company/news/new-report-from-cloudbolt-software-and-wakefield-research-unpacks-real-reactions-and-key-concerns-from-vmware-users-in-the-aftermath-of-broadcoms-acquisition/ 
7. SiliconANGLE, “Customer implications of Broadcom’s VMware acquisition”. Available at: https://siliconangle.com/2024/04/15/broadcom-vmware-analystangle-googlecloudnext/ 
8. ChannelProNetwork, “Broadcom’s VMware Acquisition and Its Impact on the Channel”. Available at: https://www.channelpronetwork.com/news/broadcoms-vmware-acquisition-and-its-impact-channel 
9. AHEAD, “Breaking Down the Impacts of Broadcom’s VMware Acquisition”. Available at: https://www.ahead.com/insights/broadcom-vmware-acquisition/ 
10. Long View Systems, “Broadcom Acquisition and the Impact to Your VMware Licensing”. Available at: https://www.longviewsystems.com/broadcom-vmware-acquisition-impact-licensing/