Navigating the change: the new VMware era by Broadcom

Today, November 22, 2024, marks exactly one year since the completion of Broadcom's acquisition of VMware, an event that marked a turning point for the entire IT ecosystem.

This anniversary represents an opportunity to reflect on the changes introduced and the strategic implications for companies relying on VMware to manage their technological infrastructure. Over the first year, Broadcom has initiated a series of significant transformations, redefining the business model and prompting organizations to reassess their IT strategies. While challenges such as rising costs and uncertainty about the future of certain products have emerged, opportunities also arise to optimize processes and adopt innovative solutions. In this context, 4IT Solutions positions itself as a strategic partner to guide companies through this complex transition, helping them turn changes into competitive advantages.

The changes brought by the acquisition

Broadcom has initiated a transition from perpetual licensing models to subscription-based ones, aiming to increase VMware’s profitability. This change offers greater flexibility but may result in higher recurring costs, prompting many companies to reassess their IT budgets. Additionally, the consolidation of the product portfolio towards solutions tailored for large enterprise clients has created uncertainty among SMEs, particularly regarding the future of legacy products. Despite these challenges, the acquisition also represents an opportunity to redefine corporate IT strategies. Organizations can seize the chance to optimize processes, adopt new technologies, and enhance operational resilience.

The main challenges to address

Companies must face several challenges related to the acquisition:

  • Cost increase: The transition to subscription models can impact IT budgets.
  • Uncertain support for legacy products: The portfolio consolidation may reduce focus on less strategic solutions.
  • Need for valid alternatives: Identifying solutions that fully meet business requirements requires thorough analysis.

In this complex landscape, MSPs play a crucial role in supporting businesses by providing advanced technical consulting and targeted strategies to ensure operational continuity and efficiency.

Turning challenges into opportunities

Despite the highlighted challenges, the acquisition also represents an opportunity to redefine corporate IT strategies. Organizations can leverage this moment to optimize internal processes and explore innovative technologies that enhance operational resilience and productivity.

Hypervisor: evaluating the available options

This period represents a strategic opportunity to reflect on the role of VMware within your IT infrastructure. It is the ideal time to decide whether to continue using VMware as the central pillar of your technology strategy or explore alternatives that may offer advantages in terms of cost efficiency and technological innovation. Among the possible scenarios, the following can be considered:

  1. Cloud solutions: flexibility and scalabili
    The cloud represents an ideal solution for businesses looking to simplify IT infrastructure management, offering flexibility, scalability, and advanced tools for management, security, and backup. It also allows for keeping data and infrastructure within national borders, ensuring compliance with local regulations and cost optimization through flexible payment models. The platforms available in the market provide a wide range of services to meet the needs of organizations of all sizes, with particular focus on virtualization, data analytics, and multi-cloud integration.
  2. Hybrid solutions: the best of both worlds
    Hybrid solutions offer a combination of cloud flexibility and control over on-premises infrastructure, addressing compliance and management needs. They allow businesses to integrate cloud services with on-premise environments, ensuring operational continuity and adapting to regulated sectors such as healthcare, finance, and public administration. These solutions can be based on existing, ready-to-use technologies or custom-designed.
  3. On-premise solutions: complete control and performance
    On-premise solutions are the ideal choice for businesses that want to maintain full control and direct management of their IT infrastructure, ensuring a high degree of customization. These options include market-established virtualization platforms, open-source solutions to reduce licensing costs, or integrated systems optimized for specific hardware, offering a comprehensive and customizable approach to infrastructure management.

Thanks to our experience gained through real-world cases encountered over the year, we have developed customized solutions that consider the specific needs of each client. In some scenarios, VMware may remain the most suitable choice in terms of reliability and cost-effectiveness, possibly with an adaptation of the licensing model used.

End-User Computing (EUC): alternative scenarios

In addition to hypervisors, it is also essential to consider the area of End-User Computing (EUC), especially for companies using Horizon. In this case as well, it is possible to adopt an approach similar to the one described above, carefully evaluating the available options:

  1. Transition to Desktop-as-a-Service (DaaS) or cloud-based VDI
    This option allows for the centralization of virtual desktop management, reducing operational complexity and enhancing flexibility. DaaS services eliminate the need to manage physical infrastructure directly, offering immediate scalability and usage-based payment models. Additionally, with advanced security features and centralized management, this solution can be a strategic alternative for businesses with a distributed workforce or hybrid work scenarios.
  2. Return to physical devices with advanced management tools
    As an alternative to maintaining a VDI infrastructure, some companies may opt for the use of laptops or physical devices managed through centralized platforms for monitoring and configuration. This approach leverages modern technologies for identity and policy management, such as multifactor authentication (MFA), conditional access (CA), and tools for automating the device lifecycle. This model can simplify operational management and reduce virtualization-related costs, particularly for organizations with less complex needs.

Both options have specific advantages and challenges. The choice depends on factors such as the level of operational complexity the company is willing to manage, security requirements, the geographic distribution of the workforce, and the available budget. In any case, it is essential to conduct a thorough assessment to identify the solution best suited to the business’s needs, while ensuring operational efficiency and business continuity.

The strategic role of 4IT Solutions

4IT Solutions positions itself as a strategic partner to help businesses navigate this complex transition. With our established experience, we offer:

  • Customized analysis of the business context.
  • Tailored solutions to optimize licensing costs.
  • Support in the evaluation and implementation of technological alternatives.
  • Strategic consulting to ensure long-term operational continuity and efficiency.

If your company is facing the challenges related to VMware’s acquisition by Broadcom, now is the time to act. Contact us today to find out how we can help you turn these challenges into real opportunities and ensure success in your digital transformation.

Valerio Malnati

Valerio Malnati

Customer Account Manager | Cloud Consultant

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