Webinar recap: How to navigate the Broadcom/VMware aftermath
Before Broadcom acquired VMware, a school with 50 physical CPUS and 1,080 actual CPU cores benefited from special discounts and paid $17,000 annually for VMware software maintenance. However, as the organization shared on Reddit, transitioning from VMware Enterprise Plus to VMware Cloud Foundation (VCF) following the Broadcom/VMware deal changed that drastically.
Licensing is now based on physical underlying server cores, and there is a 16-core minimum VMware license per physical CPU. The school’s annual VMware costs skyrocketed by 2,224 percent to $378,000.
That was one extreme example of the real-world impact of Broadcom/VMware that was covered in a June 27 webinar co-hosted by Stratosphere Networks and Expedient. During the presentation, Brent Meadows – vice president of advanced solution architecture at Expedient and a VMware Certified Design Expert (VCDX) with over 15 years of industry experience – offered guidance for businesses seeking direction in the aftermath of the acquisition.
“It’s a really big change event for a lot of organizations just because of the market share that VMware had across the board,” Meadows said.
For those who couldn’t watch the webinar live, here’s a recap of some essential information covered during the event. Please register here to view the recording for the complete learning experience.
The dynamics of the Broadcom/VMware deal
Broadcom wanted to diversify by adding software components to their portfolio for the enterprise infrastructure side, Meadows explained. Now, Broadcom is molding VMware licensing in line with their vision. That involves transitioning from perpetual licensing to a subscription model.
Previously, VMware clients bought software upfront, and the costs were purely associated with support. Now, you must re-purchase that software on an ongoing basis. That’s one driver behind higher prices, Meadows said.
As mentioned earlier, Broadcom has also adjusted licensing. Previously, it was based on memory core or CPU sockets; now, it’s based on physical underlying server cores. Meadows noted that the 16-core minimum per CPU requirement has hit organizations with small computing environments hard.
Additionally, Broadcom has consolidated from 168 different SKUs to just four bundles. On top of that, they terminated all partner agreements with VMware service providers and resellers and required reapplication for those roles, according to CRN. Subsequently, there are now just 12 Pinnacle and 300 Premier partners in North America, Expedient notes.
Expedient is at the Pinnacle level, the highest partnership tier. That means the provider has access to additional licensing models and discount tiers as well as dedicated product support departments. They also have direct access to engineering teams.
Frequently asked questions about Broadcom/VMware
It’s no surprise that business leaders have plenty of queries in the wake of the Broadcom/VMware deal.
“There are a lot of questions that are pretty common,” Meadows said. “The first one is the big elephant in the room: How much are our costs going to go up?”
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Other commonly asked questions include the following, according to Expedient.
The answers to these questions will vary depending on your unique circumstances. Working with a CSP for VMware guidance will help you calculate the financial impact of the changes and identify which of the new VMware bundles and/or VMware alternatives make sense for your company. Additionally, a CSP can augment your internal staff, assist with identifying the best strategy, and limit the impact on your organization.
What you should ask about Broadcom/VMware
There are some key questions that many people aren’t asking about the Broadcom/VMware impact, Meadows noted. Be sure to ask yourself and your service provider about the following to ensure the best outcome for your business.
Expedient recommends evaluating all your options, including the new VMware bundles and different hypervisors. A CSP can assist you in finding the best technical and financial fit for your organization in addition to evaluating the long-term effects of the changes, Meadows said. He displayed a flowchart Expedient created for VMware clients and noted that input from an experienced service provider is vital.
“All of those different potential outcomes do come with some gotchas, some concerns and risks you want to be aware of,” he said.
Ultimately, if you’re reeling in the aftermath of the VMware acquisition, you aren’t the only one, and you can find the right path for your business with expert guidance.
“The acquisition is affecting everybody globally,” Meadows said. “You’re not alone.”
Joe Williams, a senior vice president of advisory services with Stratosphere Networks, also presented during the webinar and discussed the benefits of working with a technology advisory firm to identify the best services and solutions for your business. With over 20 years of IT industry experience, partnerships with leading suppliers, the latest market data, and an advanced tool that generates comprehensive comparison matrices in minutes, we can save you dozens of hours by rapidly narrowing your options to the top 3 that align with your unique needs and goals.
If you’re interested in connecting with Expedient to determine which direction makes the most sense for your business in light of the Broadcom/VMware deal, we can facilitate that relationship.
Start today by calling 877-599-3999 or emailing [email protected].