In a significant move that has caught the attention of the cloud computing industry, VMware Cloud on AWS will no longer be resold by Amazon Web Services (AWS) or its channel partners as of April 30, 2024. This change, stemming from Broadcom’s acquisition of VMware, marks a new chapter in the relationship between these tech giants and has important implications for customers. Let’s dive into what this means for current and future users of VMware Cloud on AWS, and how SUDO Consultants can assist in navigating these changes.
The Change and Its Impact
VMware Cloud on AWS has been a popular hybrid cloud solution, allowing organizations to run their VMware workloads seamlessly in the AWS cloud. However, with this recent announcement, customers will now need to purchase and renew their services directly through Broadcom or its authorized resellers.
How will this change affect current VMware Cloud on AWS customers?
Current customers will experience several changes:
Purchasing and Renewals: Customers will need to work directly with Broadcom or its authorized resellers for any new purchases, expansions, or renewals of VMware Cloud on AWS services.
Billing Changes: While existing customers with active subscriptions will continue to be invoiced by AWS until the end of their contract term, future billing will be handled by Broadcom.
Support Transitions: There may be changes in support channels and processes as the transition occurs.
Potential Price Adjustments: As with any major change in service provision, there’s a possibility of pricing structure adjustments.
What are the benefits of customers now dealing directly with VMware by Broadcom?
While change can be challenging, there are potential benefits to this new arrangement:
Direct Access to Product Expertise: Dealing directly with the product owner may provide customers with more immediate access to deep product knowledge and support.
Potential for Integrated Solutions: Broadcom may offer more tightly integrated solutions across its portfolio, which could benefit customers using multiple Broadcom products.
Focused Development: With Broadcom at the helm, there may be more focused development of VMware Cloud on AWS, potentially leading to new features or improvements.
Are there any potential drawbacks for customers due to this change?
Customers should be aware of possible challenges:
Complexity in Multi-Cloud Strategies: Organizations using multiple cloud providers may find it more complex to manage relationships and billing across different vendors.
Potential for Price Increases: There’s uncertainty about future pricing structures under Broadcom’s management.
Changes in Support Quality: The transition may lead to changes in the quality or responsiveness of support services.
Limited Purchasing Options: The removal of AWS as a reseller reduces the options for how customers can purchase and manage their VMware Cloud on AWS services.
Additional Challenges Faced by VMware Customers
Beyond the partnership changes, Broadcom’s acquisition of VMware has introduced several significant challenges for customers:
Substantial Licensing Cost Increases.
One of the most immediate and impactful changes has been the dramatic increase in VMware licensing costs. Some customers have reported price hikes of up to 1,200% for certain product bundles. This substantial increase has caught many organizations off guard, forcing them to reassess their IT budgets and virtualization strategies.
Changes to Product Packaging and Pricing Models
Broadcom has significantly altered VMware’s product offerings and pricing structure:
- Reduced Product Portfolio: VMware’s offerings have been streamlined from 168 products, bundles, and editions to just four main bundles: VMware Cloud Foundation (VCF), vSphere Foundation (VVF), vSphere Standard (VVS), and vSphere Essentials Plus (VVEP).
- Transition to Subscription Model: VMware has shifted from perpetual licensing to a subscription-based model, aligning with industry trends but potentially increasing long-term costs for some customers.
- Per-Core Pricing: The licensing model has changed from per-socket to per-core pricing, which can significantly impact organizations using servers with high-core-count processors.
Disproportionate Impact on Startups, SMBs, and Education Sector
The new pricing and packaging changes have had a particularly severe impact on certain segments:
- Startups and SMBs: Smaller businesses that previously benefited from more flexible, lower-cost options are now facing challenges with the new bundled offerings and minimum purchase requirements.
- Education Sector: Academic institutions have been hit hard by the removal of generous discounts previously available to non-profit organizations. Some universities are reporting massive increases in their VMware licensing fees.
- Managed Service Providers: MSPs serving smaller businesses must now purchase at least 3,500 cores, regardless of their actual needs, potentially forcing them to overcommit or seek alternatives.
These changes have left many VMware customers, especially those in the startup, SMB, and education sectors, grappling with unexpected cost increases and the need to reevaluate their virtualization and cloud strategies.
How SUDO Consultants Can Help with VMware Workload Migration to AWS
As organizations navigate these changes, many may consider migrating their VMware workloads directly to AWS. This is where SUDO Consultants can provide invaluable assistance:
Expert Migration Strategy: SUDO Consultants can help develop a comprehensive cloud migration strategy tailored to your organization’s specific needs and goals.
AWS Expertise: With extensive knowledge and experience in AWS, SUDO can guide you through the intricacies of migrating to and optimizing your workloads on AWS.
End-to-End Migration Support: From planning to execution, SUDO can handle the entire migration process, ensuring a smooth transition of your VMware workloads to AWS.
Cost Optimization: SUDO can help you leverage AWS’s pricing models and services to potentially reduce your infrastructure costs.
Application Containerization: For organizations looking to modernize their applications, SUDO can assist in implementing containerization patterns on AWS, enhancing efficiency and scalability.
Continuous Support: Post-migration, SUDO offers ongoing support to manage and optimize your AWS environment.
Multi-Cloud Experience: If you’re considering a multi-cloud strategy, SUDO’s experience with various cloud platforms can be invaluable.
Steps for Customers Wanting to Continue with VMware Cloud on AWS
For those wishing to continue with VMware Cloud on AWS:
Contact Broadcom: Reach out to Broadcom or an authorized reseller to understand the new purchasing and support processes.
Review Current Contracts: Assess existing contracts and plan for renewals or expansions well in advance of expiration dates.
Evaluate Alternatives: While planning to continue with VMware Cloud on AWS, it’s wise to evaluate alternative solutions, including native AWS services or other cloud providers, to ensure the best fit for your organization’s needs.
Prepare for Transition: Develop a transition plan that addresses changes in billing, support, and management of VMware Cloud on AWS services.
Stay Informed: Keep abreast of any announcements from Broadcom regarding changes to the service, pricing, or support structures.
Conclusion
The shift in how VMware Cloud on AWS is sold and supported represents a significant change in the cloud computing landscape. While it brings challenges, it also offers opportunities for customers to reassess their cloud strategies. Whether you choose to continue with VMware Cloud on AWS or migrate to native AWS services, partnering with experienced consultants like SUDO can help ensure a smooth transition and optimize your cloud infrastructure for future success. Remember, in the fast-paced world of cloud computing, change is constant. This shift may well be an opportunity to optimize your cloud strategy and ensure it aligns with your organization’s evolving needs. With the right support and expertise, you can navigate these changes confidently and emerge with a stronger, more efficient cloud infrastructure.
This is what you’ll learn in this blog:
- What is VMware?
- How to migrate from VMware to AWS?
- VMware Cloud on AWS customers?
- Benefits of customers now dealing directly with VMware by Broadcom?
- Challenges Faced by VMware Customers
- Impact on Startups, SMBs, and Education Sector
