Navigating the New VMware Subscription Model: A Comprehensive Guide Post-Broadcom Acquisition

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With the recent announcement of the Broadcom VMware Acquisition, the subsequent overhaul of VMware partnerships, and the shift towards a subscription-based model, businesses across the country are navigating uncharted waters. The acquisition of VMware by Broadcom has introduced significant changes that impact how services are accessed and utilized. United Systems has been working diligently with our customers and recognize the challenges and opportunities this presents for your business may be confusing.

As a part of the new Broadcom partnership program, we’re here to illuminate the path forward and ensure your VMware solutions align perfectly with your business needs. Continue reading for key insights into VMware’s new subscription model and a deeper technical dive into quoting new bundles, licensing requirements, and the strategic implications for your business.

The Broadcom VMware Acquisition: Understanding the Change

Broadcom’s acquisition of VMware has set the stage for significant changes in how VMware’s solutions are accessed and managed. Most notably, the overhaul of VMware’s partnership programs and product offerings, the transition from a perpetual licensing model to subscription bundles represents a paradigm shift in VMware’s approach to virtualization and cloud services affecting business’ and IT professionals nationwide. For many IT professionals and business leaders, these changes have sown seeds of confusion and concern about the future of their IT infrastructure. As part of our commitment to our clients, United Systems is ready to demystify the Broadcom VMware changes, ensuring your business stays supported and online.

VMware’s Shift to a Subscription Model: A New Era

Gone are the perpetual licenses and extensive catalog of VMware SKUs, replaced by a streamlined subscription model. Broadcom’s strategy is focused on simplification and modernization, trimming VMware’s offerings down to four core subscription bundles, but this simplification comes at a cost, as ties with all OEMs, such as Dell/HPE/Aruba, have been cut, leaving many businesses in a lurch.

The transition to a subscription-based model by VMware simplifies its offerings into four primary subscription bundles. This significant shift will have a broad affect across procurement, budgeting, and strategic planning for technology infrastructures across various sectors.

Driven by the Broadcom VMware Acquisition, this change will necessitate a strategic review of your virtualization needs and budget planning. As a partner in this new VMware landscape, United Systems is dedicated to ensuring that businesses in Oklahoma, North Texas, and nationwide can navigate these changes efficiently.

Simplified and Strategic VMware Subscription Options

The new VMware landscape is defined by four subscription bundles, each tailored to different business needs and scales of operation. Whether you’re a small business or a medium-sized enterprise, there’s a solution that fits:

  1. vSphere Essentials Plus: Ideal for small setups, offering essential virtualization capabilities.
  2. vSphere Standard: A step up, providing more flexibility and power for growing businesses.
  3. vSphere Foundation: For businesses requiring advanced virtualization and operational tools.
  4. vCloud Foundation: The comprehensive suite for enterprises, offering a complete cloud infrastructure solution.

Quoting New VMWare Bundles

When it comes to adopting the new VMware subscription bundles, there are two main scenarios to consider:

  • For New Licensing: Customers purchasing new licensing without converting existing contracts can quote these SKUs directly from distributors based on the required cores per CPU, with a minimum of 16 cores per CPU.
  • For Contract Conversion: If converting an existing contract to the new SKUs, a budgetary estimate can be provided using the SKUs. However, the order should not be booked without an actual Quote# from VMware that corresponds to the expiring contract. For renewal conversions, the contract number and core count per CPU are necessary.

Minimum License Requirement for VMware

  • The vSphere Essentials Plus bundle is suitable for environments with up to three hosts and a maximum of 96 cores. In scenarios with fewer than three hosts, opting for vSphere Standard may be more cost-effective.
  • Licensing for vSphere Standard, vSphere Foundation, and vCloud Foundation is based on a per-core model, with a minimum requirement of 16 cores per CPU. More detailed guidance can be found in VMware’s knowledge base article.

For a comprehensive comparison of vSphere editions, refer to VMware’s product line comparison. Additionally, William Lam, a senior staff solution architect at VMware, provides a detailed breakdown of the new vSphere Foundation and VMware Cloud Foundation offers in his blog post.

Available VMware Add-ons and Portfolio Changes

You can enhance your VMware environments with add-ons such as SRM (Site Recovery Manager), VCDR (VMware Cloud Disaster Recovery), and vSAN. It’s also important to note that VMware is spinning off Workspace ONE, Horizon, and Carbon Black, which may influence your future technology strategies.

United Systems: A Broadcom Partner

Choosing the right VMware subscription is more than a technical decision; it’s a strategic one; and as confusion pervades the industry, United Systems is ready to provide clarity and support.
Invited by Broadcom into the new partnership program, we are perfectly positioned to navigate these changes, offering expertise and guidance to ensure your business doesn’t just adapt but thrives in this new VMware landscape.

  • Comprehensive Support: From evaluating your current VMware setup to identifying the optimal subscription bundle, our team is here to make the transition as smooth as possible.
  • Expert Guidance: Understanding the nuances of each subscription bundle and how they align with your business needs can be daunting. Our experts demystify the options, ensuring you make informed decisions.

Next Steps with VMWare and United Systems

With United Systems, you’re not just selecting a service; you’re partnering with a team dedicated to ensuring your IT infrastructure supports and enhances your business objectives.

  • Tailored Solutions: We understand that every business is unique. Let us guide you to the VMware bundle that matches your specific needs.
  • Seamless Transition: Worried about migration? Our team ensures a smooth transition to your new VMware subscription, minimizing downtime and disruption.
  • Ongoing Support: As your business grows and evolves, United Systems is here to ensure your VMware solutions keep pace, offering scalability, security, and reliability.

The Broadcom VMware Acquisition has undeniably shaken up the industry, but with change comes opportunity in the virtualization and cloud computing landscape. While it may seem daunting, this transition opens doors to new opportunities for efficiency, scalability, and innovation.

Seize the Opportunity with United Systems

With United Systems positioned as a partner invited by Broadcom into the new partnership program
to help you leverage this moment to enhance your IT infrastructure, optimize your virtualization strategies, and explore new cloud solutions.

This partnership allows us to assist your business in transitioning to the new VMware landscape, ensuring the correct subscription is selected to keep your operations supported and efficient, removing uncertainty and unlocking potential.

Let’s explore how the Broadcom VMware Acquisition can become a growth catalyst for your business HERE.

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