The Impact of Broadcom’s Acquisition of VMware and Business Options Moving Forward

The acquisition of VMware by Broadcom has sent ripples through the technology industry, leaving businesses that rely on VMware’s virtualisation technology to reassess their current infrastructure strategy. Broadcom, known for its dominance in the semiconductor space, has expanded its software portfolio by acquiring VMware for approximately $69 billion. This move signals a significant shift for VMware’s customers, bringing about both opportunities and challenges.

What the Acquisition Means for Businesses

Broadcom’s acquisition of VMware raises critical questions about the future of VMware’s product offerings and its pricing structure. While it’s too early to predict all the changes that future may hold, the new per-core licensing scheme (VE1) will significantly impact businesses with some seeing multiple fold increases in their estate licensing costs. However, it is likely that Broadcom will continue to enhance VMware’s robust enterprise software, ensuring its integration with a wider range of cloud and virtualisation technologies.

For businesses using VMware solutions, the acquisition offers a moment to reconsider their infrastructure options. Whether they wish to continue their on-premises setup, migrate to the cloud, or embrace a hybrid cloud strategy, companies will need to assess the best way to future-proof their IT infrastructure and manage costs.

Business Options: On-Prem, VMware on Public Cloud, and Native Public Cloud

Businesses today have several pathways to consider for their virtualisation and cloud computing needs, which should be considered before their renewal date:

• On-premises: For those wanting full control over their infrastructure, staying on-premises remains a viable option, particularly for industries that require stringent compliance and data security. With VMware’s extensive virtualisation capabilities, businesses can maintain a high level of control over their infrastructure while benefiting from virtualisation's flexibility.
• VMware on Public Cloud: Companies that want to retain the benefits of VMware but also take advantage of cloud scalability can consider VMware on public cloud solutions. Microsoft’s Azure VMware Solution (AVS) offers a clear path to extend or migrate existing VMware environments to the public cloud seamlessly with little to no disruption.
  
• Native Public Cloud: For those looking to fully embrace the public cloud, migrating to Azure Native offers several advantages, including scalability, flexibility, and a wide range of cloud-native services.

Microsoft Ecosystem Options: Azure Stack HCI, AVS, and Azure Native

For businesses already invested in the Microsoft ecosystem or considering the move to Azure for public cloud, there are several VMware-related options that could be a good fit:

• Azure Stack HCI: Azure Stack HCI allows businesses to run workloads on a hybrid infrastructure that combines on-premises data centres with Azure’s cloud services. It allows Hyper-V virtual machines to be run and connected directly to Azure services, making it excellent for organisations that want the flexibility to keep critical workloads on-premises while benefiting from the agility of the cloud.
• Azure VMware Solution (AVS): AVS offers a dedicated infrastructure in Azure to run VMware environments. This solution enables companies to migrate VMware workloads to Azure without needing to rearchitect their applications. It’s particularly appealing to those already using VMware but looking to benefit from Azure’s vast array of services.
  
• Azure Native: For companies ready to go all-in on the public cloud, Azure Native offers native virtualisation services and a range of cloud-native applications that can help businesses scale quickly. Azure’s comprehensive ecosystem, combined with native services, allows businesses to modernise their applications while reducing infrastructure overheads.
  

How Insight Supports with VMware Advisory Services

Insight is here to help businesses navigate these complex decisions. Through our VMware advisory services, we offer expert guidance on optimising your current infrastructure, planning a migration to the cloud, or implementing a hybrid cloud solution. Whether you need support in evaluating your on-premise environment, understanding your public cloud options, or determining the best course of action within the Microsoft ecosystem, Insight's team provides end-to-end support to ensure your business makes informed decisions for its future IT strategy.

As businesses adapt to the changes brought by Broadcom’s acquisition of VMware, partnering with trusted advisors like Insight can make the transition smoother, allowing companies to focus on innovation and growth.

Still in the dark regarding how these changes may affect you? let Insight shed some light on your options with VMware Broadcom.