The Impact of the VMware Transition on Your Business Success.pdf

The Impact of the VMware Transition on Your Business Success

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The Impact of the VMware
Transition on Your Business
Success
Philip Dawson
VP Analyst

4. 4 © 2024 Gartner, Inc. and/or its affiliates. All rights reserved.Gartner is a registered trademark of Gartner, Inc. and its affiliates.

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Key Issues
1.What is Broadcom and what do I need to know about
the acquisition?
2.How do I manage my dependence on VMware?
3.What are the alternatives?

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Key Issues
1.What is Broadcom and what do I need to know about
the acquisition?
2.How do I manage my dependence on VMware?
3.What are the alternatives?

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Source: Broadcom Company Overview, March 2024, Broadcom
What Is Broadcom?

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Broadcom Plans for VMware (2024)
Source: Broadcom (AVGO) Q4 2023 Earnings Call Transcript, The Motley Fool
Hock Tan
Broadcom CEO
1.Workspace ONE and
Horizon have been divested
2.Carbon Black now a part
of Symantec
•“We are also converting an install base of licenses that
is over 60% perpetual today to one that will be mostly
subscription by the end of fiscal 2024.”
•“We focus very much so on — in any acquisition where
we see the biggest value for our business model. And
basically, we then do not want to be distracted by
noncore focus. And VMware for us is about core. It’s
about data centers, it’s about core networks and core
compute. And so, we’re now going to invest and focus
our sales and R&D on those core areas of VMware
Cloud Foundation.”
•“And to us, end-user computing … good assets as they
may be, we prefer now to divest them.”

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Changes in Licensing and Packaging
Perpetual
+
Support
Per socket
Maximum 32 core
per socket
Subscription
Per core
Minimum 16 core
per socket
168 products
4 bundles
PreviousCurrent
Essentials Standard VVF VCF
vSphere Essentials Standard Enterprise+Enterprise+
vSAN
Trial
0.1 TiB/core1 TiB/core
Aria Aria
Operations
Aria Suite
NSX
Add ons SRM
SRM
Firewall
VVF = VMware vSphere Foundation
VCF = VMware Cloud Foundation

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Broadcom’s VMware Bundles
Essentials Standard
Vmware vSphere
Foundation
(VVF)
Vmware Cloud
Foundcation
(VCF)
VMware vSphere Essentials Standard Enterprise+ Enterprise+
VMware
vSAN
Trial
0.1 TiB/core 1 TiB/core
VMware
Aria
VMWare Aria
Operations
VMWareAria
Suite
VMware
NSX
Add ons
VMware Live
Recovery
Extra storage
VMware Live
Recovery
Firewall
Extra storage

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Customers have the right to continue to use
perpetual vSphere versions they have previously
licensed …
… But they cannot renew support for them.
… Or buy new perpetual licenses.
Key Issue Take-Away:

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What Was the Reaction?
Sentiment toward the acquisition of VMware by Broadcom
IT infrastructure
and operations
2%
Positive – I am very excited
about the acquisition
Medium – I’m taking a
wait and see approach
Negative – I am very concerned
about the acquisition
42% 56%
0% 50% 100%
n = 50 responding I&O leaders, excluding “don’t know” and “doesn’t really impact me”
Q: What is your sentiment towards the recent acquisition of VMware by Broadcom?
Source: The CIO’s Guide to Broadcom’s Acquisition of VMware
809896_C

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What Are the Concerns?
n = 49 IT leaders who feel negative about the acquisition
Q: We’re interested in hearing more about your perspective on the acquisition. Would you mind sharing more details?
Source: The CIO’s Guide to Broadcom’s Acquisition of VMware
Note: 10 respondents mentioned probably leaving VMware sometime in the future
809896_C
Reasons why respondents are concerned about the acquisition
Verbatim responses, multiple responses allowed
Price
Product
Support
Innovation
Other
Change in
partnership program
Broadcom reputation
3
3
4
11
16
21
32
0 17 34
Price
License model change, Broadcom
looking for profits, Broadcom
continues to raise prices
Broadcom reputation
History of past Broadcom acquisitions,
Broadcom general practices
Product
Decrease in offerings or quality

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Changes to Licensing, Packaging:
What Should I do?
•Expect that bottom line costs may increase.
•Educate stakeholders on the concerns that these changes will
create for your enterprise.
•Communicate concerns directly with Broadcom and partner account
teams, user groups (i.e., VMUG), and other industry forums.
•Inventory your VMware portfolio:
— Identify potential exit strategies for deployed VMware products, including
alternative solutions and migration activities, costs, risks and timeframes, should
the situation become untenable.
Source: Quick Answer: How to Handle Broadcom’s End of Sale of VMware Perpetual Licenses

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Manage Your VMware Costs
Optimize utilization
(minimize core count)
Determine if you can
remove NSX
= avoid VMware Cloud
Foundation
Consider running
without support
for nonproduction
Security risk
No other bug fixes
No feature updates
(e.g., no new hardware support)
Consider VMware
vSphere Standard for
medium sites and/or
test/dev
And/or And/or
And/or
Consider VMware
vSphere Essentials Kit
for small sites
And/or
Broadcom announced that access to all
patches for critical severity security alerts
will be available to those who no longer have
active maintenance and support contracts.
Supported versions of VMware vSphere are:
•7.x (April 2025)
•8.x (October 2027)
1 2 3
Source: Broadcom B-Connected Blog, Broadcom

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Key Issues
1.Who are Broadcom and what do I need to know about
the acquisition?
2.How do I manage my dependence on VMware?
3.What are the alternatives?

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Technical Evaluation Criteria
Source: Manage Your Dependence on VMware
FAC = function accelerator card; IaC = infrastructure as code; IHV = independent hardware vendor; RBAC = role-based access control
781199_C
•Security certification –
Accredited evaluation
•Software compatibility
– Operating
system support – ISV
certification
•Hardware compatibility
– CPU, GPU, FAC
–Memory
–Storage
–Network
–IHVcertification
•Community
–Open source
–Usergroups
•Partners/alliances
–Hardware
– Applications
–IT services
•Third-party integration
–Management tools
–Identityservices
–Industry standards
–Public cloud
•Disaster recovery
–Automated failover
–Fallback
•Support
–Incident response
–Long-term support
•Redundancy
–Multimaster
–Fault tolerance
•Server virtualization
–Hypervisor
–Containers
–Kubernetes integration
–Dataservices
–Networkplatform
–Cloud and edge
–Security
•Platform
–Clustering
–Schedulingand
orchestration
–Management interfaces
(API, CLI, GUI)
•Operations
–Backup and recovery
–Monitoring
–Provisioning
–Life cycle management
–Automation/IaC
•Administration
–Centralized console
–RBAC
–Tenancy
Compatibility and
certification
Core functionality Ecosystem Management Reliability and
availability

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What Would Be Required for a
Large-Scale Migration?
We refer to a large-scale migration as a concerted program of work covering the migration of a significant portion
of virtualized workloads. This would likely represent 2,000 or more virtual machines and/or at least 100 hosts.
Source: Gartner
Note: Technical team includes operations, network, storage, security, database, application, architecture.
Key Activities and Estimated Duration
Activity Year 1 Year 2 Year 3 Year 4 Resources
Initial scoping
Technical team,
architecture, CIO
Technical evaluation Technical team
Commercial negotiations Procurement, CIO
Pilot
Technical team,
migration team
Partial migration Migration team
Full migration Migration team
No effort Higher effortMid effortLower effort
Source: Quick Answer: What Would Be Required for a Large-Scale Migration From VMware’s Server Virtualization Platform?
•Initial scoping: seven to 10 people full-time
equivalents (FTE) for one month.
— Cross-IT task force.
•Technical evaluation: up to six people
FTEs for nine months.
•Workload-specific analysis and
testing varies.
•External migration services: $1,500 to
$2,500 per virtual machine.
•Personnel costs vary.
•Elapsed duration: 18 to 48 months.

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Potential Migration Paths
Initial Subsequent
On-PremisesFactors to Consider Off-Premises
Re-Virtualize
Server virtualization
or HCIS [non-VMware])
Low Latency
Compliance/High Control
Modernization
Cloud-First Strategy
Do Nothing
Containerize
(Container Management
[Software])
Containerize
(Container Management
[Cloud Service])
Lift-and-Shift
(Public Cloud IaaS)
Distributed Cloud
Host
(Cloud hosted virtualization)
Source: Manage Your Dependence on VMware
HCI = hyperconverged infrastructure
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Potential Deployment Scenarios
1 2
34
Source: Manage Your Dependence on VMware
V2V = virtual to virtual
V2P = virtual to physical
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Migration
effort
Migration
cost
Migration
risk
Time
(duration)
Expertise
(availability of
skills)
Technical
fit
Modernization
benefit
Business
benefit
Stay with VMware
(no change)
N/A N/A N/A N/A
No
change
No
change
Revirtualization
IaaS lift and shift
IaaS lift and optimize
Cloud-hosted VMware
No
change
Containerization
(existing workloads)
Container VM
convergence
Cloud-inspired on-
premises infrastructure
modernization (private
cloud)
Cloud-hosted
virtualization
(non-VMware)
Distributed cloud IaaS
Retire/replace
(PaaS, SaaS)
Low High
Risk
Value
Assess
Potential
Migration
Approaches
Source: Manage Your Dependence on VMware
VM = virtual machine
781199_C

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Key Issues
1.Who are Broadcom and what do I need to know about
the acquisition?
2.How do I manage my dependence on VMware?
3.What are the alternatives?

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Potential Vendors and Technologies
…and many more
Source: Manage Your Dependence on VMware
VM = virtual machine
781199_C

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On-Premises Full-Stack Platforms
HypervisorContainers Storage Network Infra. Mgt.Cloud Mgt.Monitoring
AHV
Nutanix
Kubernetes
Engine
Acropolis Flow
Prism,
Prism Pro
NCM Self-
Service
Epoch,
Prism,
NCM
Hyper-V
Azure
Kubernetes
Service
Storage
Spaces
Direct
Windows
Server
SDN
Azure
Portal
Azure Arc
Azure
Monitor
ESXi
Tanzu
Kubernetes
Grid
vSAN,
vVols
NSX
Networking
SDDC
Manager
Aria
Automation
Aria
Operations

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Revirtualization Use Cases …
Public cloud
Private cloud
Business-critical
Edge
Virtual desktop infrastructure (VDI)
Remote office branch office (ROBO)
Cloud native
Hybrid cloud projects, revirtualize into multicloud!

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Revirtualization Use-Case Options …
Public cloud
Private cloud
Business-critical
Edge
Virtual desktop infrastructure (VDI)
Remote office branch office (ROBO)
Cloud native
VMware, Microsoft & OSS in public cloud
VMware, Microsoft, Nutanix, Oracle, Vates & other OSS
VMware, Microsoft, Oracle, SAP & other OSS
Microsoft, Scale, Stratoscale & OSS @Edge
Microsoft, Citrix, Omnissa/VMware Horizon & Parallels
VMware, Microsoft & other OSS
Red Hat, SUSE, VMware, Proxmox & other OSS
Each has cost & compromise — check OSS support

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Key Issue Take-Away:
There is no single alternative to vSphere for
most enterprises — it will require
multiple technologies.

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Recommendations
Develop a contingency plan by establishing a task force with
sufficient cross-disciplinary technical and commercial expertise.
Determine their dependence on VMware assessing virtual
workloads, third-party tools and applications.
Decide on the best course(s) of action by weighing technical and
commercial risk when migrating workloads.
Gain executive sponsorship, including agreement on what would
trigger any contingency plan(s).
Incorporate preferred ‘Use Case’ alternatives to VMware within a
workload placement strategy.
Focus on achieving business-defined objectives, reducing technical
debt and controlling vendor lock-in.

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The 3 thirds
model
Cloud migration
infographic ...
And private
cloud
revirtualization
transition
infographic
Third use case
ERP cloud
transformation

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Recommended Gartner Research
Manage Your Dependence on VMware Vsphere Michael Warrilow and Philip Dawson
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The CIO’s Guide to Broadcom’s Acquisition of VMware Julia Palmer, Mike Cisek and Tony
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Market Guide for Server Virtualization Michael Warrilow, Philip Dawson, Tony Harvey and
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Market Guide for Full-Stack Hyperconverged Infrastructure Software Jeffrey Hewitt, Philip
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Magic Quadrant for Desktop as a Service Stuart Downes and Others

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