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Unless you’ve been on retreat somewhere without internet connection, you’ll already be aware of the increase in VMware pricing since the Broadcom takeover.
Many business and senior IT leaders have realised, that due to the huge increase in their software licensing and support services, the cost of using VMware virtualisation solutions is now beyond the reach of most mid-market organisations.
In December 2023, Broadcom changed VMware’s licensing from a perpetual model (where customers were paying a one-time fee to own the software indefinitely) to a recurring monthly subscription model.
The new VMware pricing model includes ongoing access to the latest software updates, comprehensive support services, and enhanced security features. This subscription-based service ensures regular updates and robust security protections, so no-one is questioning its effectiveness, but it comes at a cost that puts it way beyond the reach of many of our mid-market customers.
One corporate VMware customer told Business Insider that they’d seen a 175% increase in their pricing. This customer, who didn’t want to be named, explained that it “feels quite a bit like being held for ransom."1
Many of our mid-market organisations, who typically operate on tighter budgets, are now looking for an exit strategy from their existing on-premise VMware infrastructure to a private cloud environment once they’re existing contract ends.
And that exit strategy is leading towards a migration to the public cloud, such as Azure or AWS, or to a private cloud provider, like Tecala.
Even if VMware's pricing had remained unchanged, there are many other operational benefits of cloud migration other than avoiding sticker shock.
Transitioning from a CAPEX to OPEX model has been a long-term, organisation-wide operational and financial strategy that has been synonymous with digital transformation for years.
The CAPEX to OPEX shift transitions the organisation from upfront capital expenditures to predictable, operational expenses. Thus, easing financial planning and freeing up capital for other investments.
The cloud also offers enhanced scalability, enabling an organisation to easily adjust resources based on demand without over-provisioning. When delivered as part of a managed public or private cloud, it also provides advanced features and services, such as automated backups, disaster recovery, and global accessibility, which can improve operational efficiency and resilience.
Private cloud solutions often provide enhanced uptime and availability through robust redundancy and failover mechanisms, reducing downtime. The shift therefore enables organisations to focus on their core business while leveraging advanced technology for improved reliability and efficiency.
Additionally, the cloud typically offers better performance due to the availability of optimised, scalable resources, and dedicated infrastructure tailored to an organisation’s workloads and specific needs
All in all, the cloud supports better performance through optimised infrastructure and integrated services, ultimately driving innovation and business agility.
Moving from VMware to a private cloud service provider, such as Tecala, while transitioning from VMware's virtualisation environment to one using Microsoft Hyper-V or Oracle VM VirtualBox, will require careful planning.
Complexity is actually the biggest issue for many organisations looking to migrate away from VMware in their on-premise environment.
The same corporate VMware customer quoted in Business Insider who’d experienced a 175% increase in their pricing, said they felt they had no choice but to "pay up and plan ahead" because switching to another service isn't easy.2
Easing this transition is the key role of your managed service provider, because their expertise will ensure the transition is smooth and efficient, and their experience will help address compatibility, performance, and cost management issues.
A seasoned Managed Service Provider that specialises in the mid-market will deliver end-to-end support, including planning, execution, and post-migration support, which will help mitigate risks and manage the complexities of the move. The solution will be tailored to enhance performance and ensure that cloud environments are configured for optimal efficiency. In the modern era of ubiquitous cyber security threats, security and compliance is paramount. Tecala ensures that security and compliance requirements are met, providing peace of mind and safeguarding against potential risks.
This will depend on your workloads. Private Clouds are seen as being the best choice for organisations seeking ultimate control and performance in the cloud. Public Clouds give on-demand immediacy for rapidly scaling up and down and take advantage of cloud-native functions. Tecala’s Hybrid and Multi-Cloud strategy and services deliver the best of both worlds.
Depending on the applications and workloads you’re running, along with your data sovereignty, cost efficiency objectives, and a range of other imperatives that will be unique to your organisation, we’ll deliver the highest-performing hybrid or multi-cloud services for your business.
Built on the most innovative technology platforms from the world’s leading vendors, Tecala allows you to build your cloud strategy, your way, so it’s fast, stable, secure, and able to seamlessly respond to your changing business needs.
Tecala’s Managed Services and Support will design a tailored migration solution for your organisation. We’ll then manage the migration process for you, ensuring a smooth transition to the new hypervisor of your choice. Typically, our migration process follows four steps of virtual machine replication and conversion, quality assurance testing, push to production, and post go-live services.
Depending on your workloads, we can usually complete the migration process in just a few working days.
Once you’re in your new cloud environment, Tecala will continue to manage your cloud service. This includes Backup and Disaster Recovery along with ongoing monitoring and maintenance. Our Managed Services team will implement monitoring tools to track the health, performance, and resource usage of the VMs. We’ll also schedule and perform regular maintenance tasks, including patching and updates, to keep the environment secure and up to date. This helps in proactively identifying and addressing any potential issues.
And rest assured, with our Security Services, your cloud is secure, and your data is protected by default – especially now with working from home becoming the norm and cyber attacks dramatically on the rise.
1 Business Insider, August 2024.
2 Business Insider, August 2024.
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We’d have to think hard to remember a time when IT leaders weren’t being asked to ‘do more with less’. It’s part of the job description to find innovative ways to extract ‘optimal value’ from existing or shrinking budgets.
To understand how our operational landscape will influence the business cloud, and to explore how organisations should be using it, we sat down with Tecala’s Managing Director, Pieter DeGunst, to get his insights.
