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.
Introduction A Perfect Storm Creates Opportunity If you’ve been watching the virtualization market over the past eighteen months, you’ve witnessed something extraordinary: a once-stable industry thrown into chaos by a single acquisition. When Broadcom completed its $69 billion purchase of VMware in November 2023, few anticipated how dramatically—and rapidly—the landscape would shift. What followed wasn’t just a pricing adjustment; it was a fundamental restructuring that has sent shockwaves through data centers worldwide.
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:
