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Uncertainty due to VMware-Broadcom Merger - Cloud Migration is key!

The $69bn acquisition of VMware by Broadcom has been met with mixed feelings in the media. Not only the announcement of the redundancy of more than 1,300 VMware employees, many of whom received their resignations by email, but also the new strategic direction that the San Jose-based semiconductor giant appears to be pursuing with its newly acquired software development company, has left customers and employees perplexed.

Since the announcement of the takeover in May 2022, the uncertainty that has been spreading among VMware customers has manifested itself in a lack of support, the cancellation of long-standing contacts at VMware and now, following the completed takeover, in an uncertain new pricing policy. As a result, many existing customers, particularly in the area of Enterprise Licensing Agreements and Technology Licensing Agreements, have put their use of VMware solutions on hold.

In search of immediate alternatives

Not only existing customers are to be affected by the estimated price increases, but also customers who are currently in price negotiations. Current offers are, therefore, to be cancelled and renegotiated shortly with new, possibly higher prices. The search for alternatives is certainly a hot topic of many management calls among IT decision-makers. One potential beneficiary of the VMware takeover could be the cloud provider Nutanix, whose offerings have long been considered a viable alternative to VMware services. At first glance, Nutanix appears to be a tempting alternative and undoubtedly offers its own advantages, particularly in terms of easy migration and cost-effective solutions. However, it is also worth looking outside the box. The most sensible alternative is the public cloud.

A cloud migration is more than just a switch from one product to another, it is a modernisation of the entire IT structure.
Kevin Feuer, Strategic Digital Architect at PCG

Thinking outside the box

Even if Nutanix is a potential replacement for VMware customers, the question arises whether the move to the public cloud could be a sustainable and future-proof solution for many companies in the long term. Instead of switching from one provider to the next and possibly manoeuvring themselves into another VMware scenario in the medium term, the move to the public cloud would be the right development and opportunity:

  • Ultimate scalability and flexibility: cloud services can be seamlessly scaled to keep pace with business growth without the need for expensive infrastructure investment.
  • Long-term cost efficiency: The efficient utilisation of resources in the cloud can lead to significant cost savings. Customers only pay for what they actually use, and expensive hardware upgrades can be avoided.
  • Access to the latest technologies: With providers such as AWS, Azure and GCP, you have access to the latest technologies and services and keep your finger on the pulse of digital transformation.
  • Greater operational efficiency and speed: Cloud services enable faster deployment of applications and services, reducing time to market and increasing the organisation's responsiveness to market changes.

Cloud migration: the path to the future

Given the current uncertainties in the technology industry, it is important for companies not only to rely on secure and proven technologies, but also to be prepared to adapt to new realities. And in this new reality, cloud migration offers a clear path to future reliability.

We are happy to accompany you on this path. Contact us to find out how migrating to the cloud can take your organisation to the next level.

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