Blog What the Acquisition of VMware by Broadcom Means for Businesses (And What It Doesn’t)
What the Acquisition of VMware by Broadcom Means for Businesses (And What It Doesn’t)
By Insight UK / 7 May 2024 / Topics: Cloud
Broadcom’s acquisition of VMware towards the end of last year has left many organisations wondering what their next move should be when it comes to their licensing. If you’re in the dark as to why, as a thought leader in the industry Insight is well positioned to shed some light.
What’s happened?
Perpetual License Support Extended: To support customers with old perpetual licenses, Broadcom has extended its support by offering free access to zero-day security patches for supported versions of vSphere.
Subscription Model: VMware has transitioned from perpetual license sales to a subscription-based business model, which may have a potential impact on costs.
Here are four key considerations we think you should keep in mind: Evaluate your current usage: With the introduction of the per-core licensing scheme, it's important to evaluate your current usage and determine whether you need to reduce the number of cores you use to avoid additional fees. By analysing your usage patterns, you can identify areas where you can optimize your usage and reduce costs.
Consider bundle options: VMware has consolidated its offerings by creating bundles, resulting in a reduced number of SKUs. Consider the bundle options available and evaluate whether they align with your business needs and budget.
Explore alternative solutions: The recent changes in VMware's licensing model have pushed many organisations to explore alternative solutions that provide them with better ROI. Consider exploring cloud-based solutions, which offer many benefits, including lower costs, greater scalability, and increased flexibility. By carefully evaluating your options, you can ensure you are making the right choices for your business and maximizing your ROI.
Available options from Insight:
Stay with VMware and optimise your environment to extract the maximum value from the new SKUs, which essentially bundle more technology. |
Decide to go with an alternative where there are several options: |
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Since the acquisition, Broadcom has streamlined 650+ offerings into four focused packages, and Insight can help you understand which package is right for you. Organisations should carefully assess their options when reworking the foundation of their data centre, which is a huge undertaking, and Insight can help you navigate this complex process. Partners such as Insight can guide your organisation in choosing the right approach, whether it's on-premises, in the cloud, or multicloud, despite changes in the market.
It is important to set realistic expectations while closely monitoring how the news will evolve as further changes are anticipated in the coming months.
In the dark with your VMware licensing spend? Illuminate your options with Insight.
Companies are now navigating changes in their environment with the help of Insight experts. You can reach out to us to address your burning questions, potential solutions, and best practices for ensuring stability despite changes in the market.
Lean on a strategic partner. With thousands of deep partnerships with leading providers, Insight is the go-to expert for solutions integration.
