GHS Blog | Industry Insights

What's next for your VMware environment?

Written by Luis Carrasco-Cortes | Jan 8, 2025 12:07:56 AM

Caveat: This document is intended for IT professionals managing mission-critical VMware environments. If you are exploring options for non-critical systems, some considerations may not apply. However, if cost control, risk management, and flexibility are high on your agenda, read on to explore the best approaches for your VMware landscape.

What next for your VMware environment?

For IT leaders, managing costs is the top priority. With recent developments in VMware's ownership, now is the time to reassess your options for sustaining enterprise-grade workloads. Controlling costs while  retaining operational flexibility and minimizing risk is the central challenge. Here, we explore various options, comparing each based on cost, risk, and flexibility to provide a clear picture of the path forward.

Available client options

Cost

Risk

Flexibility

Do nothing and run unsupported: Unacceptable for most enterprises

Low

High

Low

Adopt VCF subscription at renewal on-premises: Causes potentially significant licensing cost increase.

High

Low

Low

Modernize & Transform to Cloud Native: Rushed transitions can be risky and costly.

High*

High*

High

Migrate to a competitive virtualization solution: Comes with uncertainty and risk.

Neutral

High

Depends

Adopt VMware Cloud Foundation on IBM Cloud: Addresses immediate licensing concerns and access to a platform that supports current and future growth needs, including optimization, innovation, and transformation.

Low

Low

High

* Transformation costs and risk are high, especially when rushed


OPTION 1: DO NOTHING AND RUN UNSUPPORTED

For most enterprises, running a VMware environment without vendor support is simply not viable. While this option may seem cost-effective initially, it exposes your organization to significant risks, including lack of access to critical updates, security patches, and expert support.

  • Cost: Low, as there are no licensing fees.
  • Risk: High, due to lack of support for security, compliance, and stability.
  • Flexibility: Low, as unsupported environments are harder to adapt and scale.

OPTION 2: RENEW VCF SUBSCRIPTION ON-PREMISES

Renewing your VMware Cloud Foundation (VCF) subscription on-premises provides stability, but it often comes with a substantial cost increase due to Broadcom's licensing structure. This option is generally low-risk but lacks the scalability and cost efficiency that cloud-enabled hybrid models offer.

  • Cost: High, with significant licensing fees upon renewal.
  • Risk: Low, as it retains familiar tools and environments.
  • Flexibility: Low, limited by on-premises infrastructure and scalability challenges.


OPTION 3: MODERNIZE & TRANSFORM TO CLOUD-NATIVE

Modernizing and transforming VMware environments to cloud-native architectures might seem appealing, especially for organizations looking to future-proof their IT strategy. However, the transition can be risky, costly, and disruptive, particularly for mission-critical workloads. Rushed transitions to cloud-native frameworks can introduce unexpected complexities and strain IT resources.

  • Cost: High*, often involving significant upfront and ongoing costs.
  • Risk: High*, as rushed or poorly managed transformations can lead to delays, increased costs, and potential disruptions to operations.
  • Flexibility: High, with the potential for scalability and advanced cloud capabilities.

OPTION 4: MIGRATE TO A COMPETITIVE VIRTUALIZATION SOLUTION

Migrating to a competitive virtualization platform, such as a non-VMware solution, offers another option. However, this path comes with uncertainties, including compatibility issues, retraining costs, and potential risks associated with untested systems for your specific workloads.

  • Cost: Neutral, but dependent on vendor pricing models.
  • Risk: High, as migrating critical workloads to a new platform can introduce operational risks and compatibility challenges.
  • Flexibility: Depends on the specific platform and its capabilities relative to VMware.

OPTION 5: ADOPT VMWARE CLOUD FOUNDATION ON IBM CLOUD – THE COST-SAVING HYBRID APPROACH

By adopting VMware Cloud Foundation on IBM Cloud, organizations can address immediate licensing concerns, control costs, and access a platform that supports both current and future growth needs. This option leverages IBM Cloud’s flexibility, enabling hybrid deployment models that optimize for cost and scalability.

  • Cost: Low, thanks to flexible licensing options and the ability to scale resources based on demand. This approach mitigates the steep costs associated with renewing on-premises licenses.
  • Risk: Low, with support from IBM Cloud and VCF, ensuring continuity for mission-critical workloads.
  • Flexibility: High, allowing organizations to leverage cloud capabilities, optimize resources, and expand as needed while maintaining a consistent VMware environment.

WHY CONSIDER VMWARE CLOUD FOUNDATION ON IBM CLOUD?

For many enterprises, the immediate cost savings of moving to IBM Cloud outweigh other considerations. The flexibility of a hybrid cloud approach means you can continue running VMware environments with reduced licensing costs, thanks to IBM’s Bring Your Own License (BYOL) program. This model is particularly beneficial for enterprises seeking to manage costs without sacrificing the reliability and support VMware offers.

Conclusion

Managing enterprise-grade VMware environments requires a thoughtful approach that balances costs, risks, and flexibility. While each option offers different benefits, adopting a hybrid model with VMware Cloud Foundation on IBM Cloud provides an optimal balance, reducing costs and providing the flexibility to adapt to future needs. GlassHouse Systems is here to help you navigate these options, offering expertise to ensure your VMware environment supports your strategic objectives today and tomorrow.

GHS’ consultative approach allows you to make informed decisions tailored to your unique requirements. Whether considering a hybrid model or exploring other paths, our team is ready to provide the guidance and support you need for a successful and cost-effective VMware strategy. 

Related articles that might interest you: