We have been officially announced as a VMware Cloud Service Provider partner at the Premier Partner level in the Broadcom Advantage Partner Program. As a member of the program, we will be supporting both existing and new customers through this industry shift. In this insight, we offer more information about Broadcom’s acquisition of VMware, the consequent licencing changes, and what this means for you.
VMware, developers of the industry leading virtualisation software which powers our Enterprise and Private Cloud platforms, has recently been acquired by Broadcom, prompting changes to their partnership and licensing processes. The primary change that is affecting hosting providers is to the invitation-only ‘Broadcom Advantage Partner Program (APP)’. Broadcom has reviewed its partnerships with all providers, transitioning to a partner program where only leading providers will be able to offer VMware products. Broadcom has stated that this change is to deliver a simplified service for users.
As a VMware Cloud Service Provider (VCSP) partner at the Premier level, we are still able to utilise VMware’s top enterprise-grade virtualisation software to power our platforms.
This transition is bringing significant changes across the industry, with many businesses looking for clarification on how this will affect their infrastructure. It is important to understand firstly how and why VMware is used, and the background behind the acquisition.
Why VMware is used
VMware is known for its hypervisor-based virtualisation software, used to power cloud infrastructure. Virtualisation allows for an environment to use Virtual Machines (VMs), greatly extending the capability of a physical server, without significantly increasing costs. VMs reduce the amount of equipment needed, better utilising resources. They remove the need to purchase additional hardware, reduce the space needed to house physical servers, and save the energy costs of running additional servers. VMs also allow for flexibility and scalability – if your infrastructure requirements change, you can rapidly scale up your platforms, without additional hardware. VMware additionally operates on Zero Trust architecture, with the highest level of security, protecting your sites and applications. We use VMware to power our Enterprise and Private Cloud platforms.
Learn more about VMware Hosting
What is the background of Broadcom’s acquisition of VMware?
Broadcom acquired VMware in November 2023, with the aim of integrating their hardware business with VMware’s software. In their announcement of the acquisition, Broadcom’s President and Chief Executive Officer, Hock Tan, stated ‘Our goal is to help customers optimize their private, hybrid and multi-cloud environments, allowing them to run applications and services anywhere.’
Shortly after the acquisition was finalised, Broadcom announced changes to VMware licensing and partnerships. This included simplifying their portfolio by transitioning to only offering subscription licences, rather than perpetual licences, and restructuring the Broadcom Advantage Partner Program.
What do the VMware by Broadcom changes mean for you?
Licencing and infrastructure
Going forward, only members of the Broadcom APP, including Hyve, will be able to directly offer VMware licences. Providers which are not part of the APP will need to either acquire licences through a third-party ‘middle-man’ who is part of the program, which will mean higher costs for the provider and their customers, or use an alternative hypervisor software. If your provider continues to use VMware through a third party provider, your provider will not have a direct link to VMware support.
If your provider decides to stop using VMware and use an alternative, this may involve refactoring the code of your infrastructure to be compatible, either in-house or through your provider. The impact of this will depend on your provider’s migration strategy and levels of management. You should receive contact directly from your provider on their strategy and its impact on your platforms. Alternatively you can migrate to a recognised VMware provider, meaning you can continue to use the VMware platform.
Learn more about VMware Licensing
Pricing structure
VMware by Broadcom has updated its pricing structure for licensing its products. Variable RAM-based pricing has been discontinued, and replaced with fixed CPU core-based pricing. This change aims to simplify the pricing structure, with fixed monthly prices billed in advance.
This updated pricing structure will apply to all providers who are part of the Broadcom APP. Providers who are not part of the APP will have less control over the pricing they pass on to their customers, as this will be determined by the third party they are purchasing their licences through.
What next?
Our migration services for customers currently using VMware provide a cost-effective alternative. If you are currently using a VMware platform, and migrate to Hyve, we will work with you to ensure the migration is as seamless as possible. Our experts can identify your low traffic periods and complete the migration during these off-peak times to minimise any downtime.
As a member of the Broadcom APP, Hyve benefits from directly purchasing licences, bringing cost savings, which we pass on to our customers. We can also work with our existing and new customers to optimise your core count, providing further cost-efficiency.
If you want to know more about how the changes to VMware will affect your business, or to learn more about our migration services, book a call with one of our cloud experts. We can arrange a no-obligation consultation to assess your current position, what impact the changes will have, and advise on your best route forward.
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