The increase in VMware costs presents a chance for modernization that can enhance SEO.

As Australian organisations navigate their hypervisor options, they must adopt a strategic mindset to meet both current and future needs. VMware has long been a cornerstone of infrastructure setups, providing an efficient means to package and host workloads on-premises or in the cloud. However, Broadcom’s acquisition of VMware in 2023 has led to significant licensing price increases, with costs rising between three to ten times previous renewal rates. This shift has prompted many organisations to view VMware as a ‘burning platform,’ compelling them to explore alternative virtualisation technologies. While the immediate goal for these organisations may be to find a like-for-like replacement for their virtual machines, there exists a broader opportunity for infrastructure modernisation.

Not all alternatives to VMware are equal. Platforms such as those based on Red Hat OpenShift not only facilitate the re-hosting of virtual machines but also serve as hosting environments for containerised applications, including emerging AI workloads. This multi-functional capability allows organisations to transition from VMware to a more versatile infrastructure that can adapt to evolving demands. The cost of such a comprehensive transformation often aligns with the increased VMware licensing fees. Consequently, many Australian organisations are re-evaluating their strategic approaches in light of these changes. By selecting a flexible alternative platform and collaborating with experienced partners, organisations can leverage the VMware price increase to enhance their operational capabilities while preparing for future infrastructure requirements.