The invoice arrived, and the meeting quickly followed.
For nearly two decades, the “cost of virtualization” was a line item we grumbled about but accepted. It was the “VMware Tax,” the price of admission for a stable, feature-rich datacenter. But in the wake of the Broadcom acquisition and the subsequent licensing overhaul, that tax has, for many organizations, turned into a ransom.
This isn’t just about price hikes. It’s about a fundamental shift in how infrastructure is consumed.
Virtualization licensing just got complicated. With VMware's Broadcom acquisition driving 3x cost increases and Microsoft introducing new subscription models, IT leaders need a clear roadmap. This blog provides the analysis and insights you need to make informed decisions that align with your budget and strategy.
Welcome to Part 2 of our “Beyond the Cloud: The Case for On-Premises Virtualization” series. In our introductory post, we explored why organizations are reconsidering their virtualization strategies post-VMware acquisition. In Part 1, we conducted a detailed five-year Total Cost of Ownership (TCO) analysis comparing Windows Hyper-V, Azure VMware Solution (AVS), and Azure Local, revealing how different cost structures impact long-term budgets.
A key factor driving those cost differences was how each platform’s licensing model works.
Introduction In our previous blog post, we explored why organizations are reconsidering their virtualization strategy post-VMware and highlighted the often-overlooked value of Windows Server Failover Clustering with Hyper-V. Now, in this first follow-up post of the "Beyond the Cloud: The Case for On-Premises Virtualization" series, we dive into the financial side of that decision. Specifically, we will compare the five-year Total Cost of Ownership (TCO) for three possible platforms to run a 100-Virtual Machine (VM) workload: