VMware has long been the go-to solution for organizational virtualization. However, following VMware’s acquisition by Broadcom, many organizations chose to move away and consider their alternatives for business virtualization.
Most of these platforms are efficient for HCI migration, flexible, and cost-effective. However, a significant number of small to mid-sized organizations are at a crossroads between consideration and decision.
Besides the high subscription costs of VMware, many users are unclear why they should consider VMware alternatives. That’s where we have a solution for you.
4 Reasons for Choosing VMware Alternatives
Here are four reasons for choosing a more cost-effective alternative to VMware virtualization.
1. Cost Increases and Licensing Changes
Before Broadcom’s acquisition of VMware, users could own the VMware software. They had a perpetual licensing system for the service. However, a late 2023 handover of ownership to Broadcom prompted the creation of a different payment model for users, making VMware a subscription-based model.
It meant that the users won’t own the software. Instead, they have to pay charges on a subscription-based model.
This buyout of VMware led to three different major shifts shaping the buyers’ habits into a different market state, including noticeable increases in licensing costs. According to Network World, US telecommunications giant AT&T faced a 1,050% increase in licensing costs.
Conversely, VMware alternatives like Sangfor are providing a hyperconverged infrastructure that reduces at least 70% of the TCO (Total Cost of Ownership) with a more cost-efficient solution. Other competitors are also staying ahead with simplified operations and multiple network security measures.
The new pricing model ended the perpetual licensing models users enjoyed before 2023. The three major shifts after the change of ownership were:
Subscription Shift
A shift to a subscription-based tool makes VMware a less compatible solution for users. It has a significant effect on budgeting and cost calculation during revenue assessments. When a software expense goes from the one-time capital expenditure (CAPEX) model to recurring operational expenditure (OPEX), it impacts the budgeting and financial planning.
Perpetual License End
VMware users must move to a subscription-based model from the perpetual model they have enjoyed for the tools. For many business owners and users, transitioning to a subscription model with zero ownership makes no sense.
Increased Costs
Broadcom’s acquisition of VMware leads to price concerns among users due to a significant hike in the subscription-based model. There’s a minimum purchase requirement resulting in higher costs for many customers.
Particularly, smaller environments with minimum requirements faced an exponential price hike through subscription. The cost increment through the new subscription model often led to 400% to 700% hike in price, according to Zmanda.
Additionally, businesses saw a steady shift in pricing after the acquisition. This shift in price made VMware competitors more competitive to users, according to Crayon.
2. Potential Limitations and Complexity
Pricing concerns aren’t the only reasons for smaller and mid-size enterprises to abandon the use of VMware. Broadcom started to focus on larger enterprise-sized client servicing, leading to the denial of customer support for smaller users.
Native Container Support
VMware has added container support. But the licensing model is intricate and requires multiple levels of subscription. Tanzu, by VMware, is efficient. However, many users reported that it introduces performance overhead in comparison to its competitors. While the added container support by VMware is typically appreciated, smaller users prefer native and better integration for container-specific environments.
Also, many users consider it less flexible compared to vendor-agnostic Kubernetes solutions when operating across multiple clouds.
Hardware Dependence
VMware depends on specific hardware. Although operating on multiple systems, VMware is limited by the power of the CPU and RAM. Comparatively, many alternatives provide similar output with lesser dependence on hardware and equipment while still being cost-effective.
Integrated System
VMware’s highly integrated system (NSX, VSAN, etc.) often makes it challenging to switch to a different platform.
Steep Learning Curve
What most small to mid-sized users don’t like is the learning curve on the VMware platform. It requires different technology-specific skills and training, which can create a barrier for some businesses to integrate or migrate to the subscription-based model.
3. Strategic Considerations
Most small to mid-sized businesses that require virtualization are looking for agile and cost-effective solutions.
Agility & Cont Consideration
Growing considerations of cost, agility, and industrialized parameters make VMware a less attractive option to users.
The adoption of subscription-based models to replace the perpetual licensing model sparks concerns for IT cost optimization. Users are considering optimizing VM density and utilizing their existing infrastructure. Furthermore, many users are planning to incorporate a third-party solution instead of the costly vSAN expansion.
Total Cost of Ownership
Users are accounting for direct costs (licensing fees, hardware) and indirect costs, including training, migration, and downtime. Furthermore, a deep dive into organizational cost considerations for workforce retention and long-term strategic cost does not give confidence to most VMware users, offsetting the initial investment.
Migration and Exit Strategy
Many users consider a migration from VMware to other platforms a much difficult and complex process.
It requires extensive risk analysis, dependency mapping, data backup, a phased approach, and contingency measures, making VMware a less agile platform. Switching to other cloud-based solutions becomes difficult and demands broader effort from the IT team.
4. Better VMware Alternative Solutions
While VMware continues to target large enterprises with broader requirements, it’s driving the tool beyond the affordability level for mid-size and smaller organizations.
That’s where VMware competitors come to flood the market with more affordable, easy-to-use, and integrated solutions. Virtualization platforms like Sangfor provide more desktop-friendly options to smaller and mid-sized organizations with equal efficiency.
In addition, there are other platforms like AWS, Google Cloud Platform (GCP), and Azure offering robust virtualization with strong security.
Better VMware Alternative Solutions with HCI
While VMware continues to target large enterprises with broader requirements, its subscription-based pricing and complexity make it less affordable and harder to manage for mid-size and smaller organizations. This is where VMware competitors, particularly Hyperconverged Infrastructure (HCI) solutions like Sangfor, provide an attractive alternative. HCI integrates compute, storage, and networking into a single platform, simplifying management, reducing operational overhead, and lowering Total Cost of Ownership (TCO).
For example, Kimley-Horn, a leading design, planning, and engineering consultancy, faced rising costs, complex licensing, and workforce training challenges with VMware after its acquisition by Broadcom. Within 60 days, they successfully tested and migrated to a more agile virtualization platform. Solutions like HCI would have addressed these exact challenges, offering faster deployment, unified management, and scalable performance while reducing both capital and operational expenses.
Answering ‘Why Should you Switch from VMware?’
Multiple factors, including rising costs, licensing changes, operational complexity, and the need for greater agility, drive the shift from VMware to its alternatives. For many organizations, Hyperconverged Infrastructure (HCI) solutions like Sangfor provide a modern answer to these challenges.
Kimley-Horn illustrates how organizations can quickly transition to a more agile and cost-effective platform. For your business, the decision to move away from VMware should be guided by careful analysis of costs, operational needs, and long-term strategic goals.
With these considerations in mind, the next step is to explore the key advantages of HCI, including cost savings, simplified management, and scalability, which make it a compelling choice for modern business virtualization.
