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Navigating VMware licensing changes with confidence

Respond to VMware’s licensing changes with actionable strategies to stay ahead

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Sean Dow
Sean Dow
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Broadcom’s recent shift toward subscription-based, per-core VMware licensing has left enterprises reeling. Teams are now grappling with escalating costs and operational complexity. For those relying on VMware, the question isn’t just “How do we adapt?” but “How can we turn this challenge into an opportunity?” 

A recent ESG white paper dives deep into these issues, offering expert insights to help you successfully address these licensing challenges. Here, we’ll help break them down. Together, we’ll explore the hurdles created by VMware’s new model, the case for modernizing your virtualization strategy, and how you can adapt intelligently with lower costs, flexibility, and robust security. 

Understanding VMware licensing changes

What do these changes mean for your IT budget? 

Cost hikes for multicore systems 
Enterprises running applications on powerful multicore processors will see dramatic cost increases. These charges compound across clusters, making cost management an ongoing headache.  

Rigidity with subscription-only models 
Moving away from perpetual licenses means committing to subscription agreements. While predictable on paper, these agreements can limit flexibility and introduce products customers have not previously used.  

Vendor lock-in risks 
Hyperconverged infrastructure (HCI) requires scaling compute and storage simultaneously, even if an organization only needs one. This inefficiency is another layer of unnecessary cost. 

Why now is the time to modernize your virtualization strategy

VMware’s overhaul presents an opportunity to rethink how virtualization fits into the broader IT strategy. Here’s why modernizing virtualization makes sense now more than ever:  

Reduce total cost of ownership (TCO)  
Legacy environments often waste valuable resources due to underutilized compute and storage. Organizations leveraging external storage systems can optimize resource utilization, freeing up VMware virtual CPUs (vCPUs). Using NetApp® ONTAP® on-premises and in the cloud, some enterprises have reduced virtual infrastructure costs by up to 50%.  

Accelerate hybrid cloud migration  
Migrating workloads to the public cloud becomes easier with observability solutions like NetApp Data Infrastructure Insights. This tool maps dependencies across apps, storage, and networks. 

Support for evolving technology 
With AI, analytics, and containerization driving innovation, modernizing now helps ensure your business is better prepared for emerging technologies without a surge in costs. 

Take control of your VMware infrastructure costs

The best way to handle VMware pricing changes? Take control strategically with solutions tailored to your needs. Here’s how NetApp can help:

1. Start with deep visibility 

NetApp Data Infrastructure Insights offers a granular view of your environment, helping you:

  • Identify idle VMs and underutilized resources. 
  • Map dependencies across storage, applications, and virtualization. 
  • Confirm license compliance data to prevent avoidable expenses. 

With this clarity, IT leaders can confidently optimize and invest in the right areas.

2. Leverage flexible storage options 

NetApp ONTAP delivers unmatched storage flexibility for any environment:

  • On-premises efficiency: Offload storage management tasks to enhance CPU efficiency and scale effortlessly with modern flash technologies. 
  • Public cloud compatibility: ONTAP is the only VMware-certified external storage service available across AWS, Azure, and Google Cloud. Migrate workloads seamlessly and save up to 50% on storage-heavy applications by decoupling storage from compute. 
  • Hypervisor choice: Alternative hypervisors like Microsoft Hyper-V and Red Hat OpenShift offer mature virtualization platforms. Take advantage of NetApp Shift toolkit for smooth transitions between hypervisors. 

3. Prioritize data security 

With increasingly complex cybersecurity threats, a modern storage strategy isn’t just about cost reduction. It’s about staying protected:

  • Use real-time ransomware detection powered by NetApp ONTAP.
  • Leverage immutable Snapshot™ copies to safeguard critical data.
  • Rely on a 99.9999% availability guarantee for seamless operations. 

The path forward for VMware and beyond

Whether you stick with VMware or transition to cloud-native or hybrid systems, NetApp helps you adapt to changing demands, optimize costs, and strengthen security. With Broadcom’s acquisition signaling major shifts ahead, NetApp is here to guide you in balancing cost and performance for a sustainable future.  

Want to future-proof your virtualized environment?  
Read the ESG white paper to explore practical strategies and solutions for data infrastructure modernization.

Sean Dow

Sean is a Marketing Strategist for VMware Solutions at NetApp. He joined the marketing team at NetApp in 2019 and has held roles on the Private Cloud, SAP, and Analytics solutions teams. Prior to NetApp, he spent 9 years in the financial industry, occupying various roles. Outside of work you’ll likely find him skiing, golfing, singing loudly in his car, or enjoying the Colorado mountains with his wife and dog.

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