VMware licensing shake-up and why Oracle Cloud is worth considering

Doria Sacer 11-Jul-2024 09:40:21
VMware licensing shake-up and why Oracle Cloud is worth considering
5:05

The digital landscape is constantly evolving, and certainly, the acquisition of VMware by Broadcom has caused some market turbulence. VMware users are now experiencing changes in licensing models, contractual agreements and ultimately significant price hikes. However, this acquisition also presents an opportunity for enterprises to reassess; with many considering their options both technically and commercially. In this blog, we will consider the advantages of Oracle Cloud VMware Solution which now offers a real alternative as a modern and flexible Cloud infrastructure option in comparison to the other options available. 


Broadcom's Masterplan: Software Supremacy as a Catalyst for Change?

Broadcom's vision is crystal clear: leverage VMware's iron grip on the virtualisation market to become a software behemoth. But this also could lead to disruption of the current landscape and Broadcom's heavy-handed approach, particularly regarding the overhaul of VMware’s licensing model has left many loyal customers, feeling bruised and bewildered.


Broadcom has ditched the complex Partner Connect program in favour of a more streamlined VMware White Label Program. This translates to:

  • One-size-fits-all licensing: Gone are the numerous options; now there's just one SKU, the all-encompassing VMware Cloud Foundation (VCF).
  • Subscription shock: Say goodbye to perpetual licenses – Broadcom is all about recurring revenue now, and customers are facing subscription fees.

While this supposedly aims for easier management, it comes at a hefty price. Some users, many already budget-stretched, are staring down the barrel at price hikes exceeding 1200%! Additionally, Broadcom has discontinued over two dozen VMware products and bundled others together, potentially forcing customers to pay for features they don't even need. 


Small wonder organisations are looking for alternatives...

OCI as an Alternative

The integration of VMware into OCI represents a significant advancement in Oracle’s Cloud offerings. It offers VMware users across their environments a robust and flexible virtualisation solution for their resource management requirements. 


OCI provides high-performance computing capabilities, enabling faster provisioning of environments — up to 1,440 times faster in fact. This performance boost is crucial for businesses that require rapid scaling to meet fluctuating demands. The elasticity of OCI allows for scaling resources up or down based on real-time needs, ensuring that enterprises only pay for what they use. One of the standout benefits of the Oracle Cloud VMware Solution (OCVS) is its ability to facilitate a seamless migration of existing VMware workloads to the Cloud. Enterprises can move their workloads with minimal changes, preserving their existing investments in VMware tools, processes, and policies. This is particularly beneficial for companies looking to avoid the complex and often risky rearchitecting of applications.


The Future of Virtualisation: Leveraging Oracle’s Cloud Services

Enterprises running VMware on OCI can easily integrate with Oracle’s suite of Cloud services, including Oracle Autonomous Database, Exadata, and more. This integration facilitates the modernisation of application stacks, allowing businesses to leverage advanced analytics, machine learning, and other Cloud-native services to drive innovation and efficiency. Security is a major concern for enterprises, and OCI addresses this with core-to-edge protection and built-in security features. Additionally, OCVS offers full administrative control to customers, allowing them to manage their environment without relying on third-party support. This level of control is crucial for maintaining compliance and security standards. 


Save Money!

By deploying and running VMware on OCI, we are seeing significant cost savings on Cloud subscriptions. In recent customer engagements, DSP worked with a telecommunications company, who by deploying on OCVS have reduced their ongoing costs by over 50%. These savings are attributed to OCI’s competitive pricing models and efficient resource utilisation. 


Conclusion

The integration of VMware on OCI offers enterprises significant advantages, including seamless migration, enhanced performance, cost efficiency, and robust security. These benefits are crucial in a market adjusting to VMware's acquisition by Broadcom, which has raised concerns over potential price hikes and licensing changes. As businesses navigate these changes, the flexibility and advanced capabilities of OCI present a compelling alternative. By leveraging OCI’s strengths, enterprises can ensure continuity, modernise their IT infrastructure, and maintain a competitive edge in an evolving Cloud landscape.

If you’re interested in reading more about Oracle licensing in VMware environments, you can download DSP’s simple guide here

Have any questions? Get in touch with a licensing expert today: enquiries@dsp.co.uk

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