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Escape Broadcom’s Price Hike for VMware: The Smart Alternative

05/02/2025
Digital Carbon Blog Broadcom Price Hike

Introduction

The tech industry has been rocked by Broadcom’s acquisition of VMware, bringing sweeping changes to licensing models and pricing structures. Businesses that have relied on VMware for their virtualisation infrastructure are now facing significantly higher costs due to the elimination of perpetual licences in favour of a subscription-based model. With reports of price increases reaching up to 700%, IT managers must urgently seek alternatives to avoid budget overruns.

One such alternative is migrating VMware workloads to a Virtual Data Centre (VDC). Providers such as Digital Carbon offer scalable and cost-effective cloud solutions that not only bypass Broadcom’s aggressive pricing but also enhance security, performance, and flexibility. This article explores why organisations should consider migrating to a VDC, the benefits of SD-WAN integration, and how they can achieve substantial cost savings while maintaining operational efficiency.

The Impact of Broadcom’s Licensing Changes

Broadcom’s move to a subscription-only model has created several key challenges for IT teams:

  • Significant Cost Increases: Subscription fees are now two to twelve times higher than previous perpetual licensing costs.
  • Mandatory Shift: Companies with expiring support contracts must transition to the new model or risk losing access to updates and technical support.
  • Complex Licensing Models: Broadcom has introduced core-based pricing and bundled offerings, complicating cost management.

For many organisations, the new pricing structure makes maintaining an on-premises VMware environment financially unsustainable. The challenge now is finding an alternative that aligns with budget constraints while preserving operational efficiency and scalability.

The Solution: VMware Virtual Data Centre (VDC) Migration

A VMware Virtual Data Centre (VDC) replicates the capabilities of traditional data centres in a cloud environment, offering enhanced scalability, flexibility, and cost efficiency. Digital Carbon provide seamless migration paths that enable businesses to transition from on-premises VMware environments without requiring significant architectural changes.

Key Benefits of VDC Migration

1. Cost Savings
  • Pay-as-you-go pricing eliminates large capital expenditures on hardware and perpetual licences.
  • Reduces ongoing maintenance costs associated with physical data centres.
  • Avoids Broadcom’s escalating subscription fees.
2. Scalability and Flexibility
  • Instantly scale resources up or down based on demand.
  • Supports hybrid cloud environments for seamless integration with existing infrastructure.
3. Simplified Operations
  • Centralised management tools streamline resource allocation, monitoring, and performance optimisation.
  • Managed services reduce the burden on in-house IT teams.
4. Enhanced Security and Compliance
  • Built-in firewalls, encryption, and access controls ensure robust data protection.
  • Disaster recovery capabilities provide automatic backups and failover options for uninterrupted operations.
VMware Virtual Data Centre (VDC) Management Interface
VMware Virtual Data Centre (VDC) Management Interface

Integrating Connectivity with VMware VeloCloud SD-WAN

For businesses migrating to a VDC, connectivity remains a critical factor. Traditional WAN architectures are often costly and inefficient in cloud environments. VMware VeloCloud SD-WAN addresses these challenges by:

  • Dynamic Multipath Optimisation (DMPO): Ensuring optimal application performance by dynamically steering traffic across multiple transport links.
  • Zero-Touch Deployment: Simplifying branch office setup with plug-and-play installation.
  • Integrated Security: Offering intrusion detection/prevention, URL filtering, and malicious IP blocking.
  • Unified Management: Providing centralised control over network policies and security settings.

By integrating SD-WAN with a VDC solution, businesses benefit from high-performance connectivity that mimics an on-premise experience, ensuring seamless access to applications and services

VMware VeloCloud SD-WAN Service with VMware VDC
VMware VeloCloud SD-WAN Service with VMware VDC

Cost Analysis: On-Premises vs. VDC + SD-WAN

A comparative cost analysis highlights the financial advantages of migrating VMware workloads to a VDC with SD-WAN. Based on a three-year projection for a typical enterprise deploying 50 virtual machines:

Cost Component On-Premises Deployment (3 Years) VDC + SD-WAN (3 Years) Savings
VMware Licensing £67,200 Included in VDC £67,200
MPLS/Private WAN £150,000 SD-WAN Included in VDC £150,000
Legacy Firewalls £90,000 Included in SD-WAN £90,000
Hardware Maintenance £150,000 No physical hardware £150,000
Total £457,200 £225,972 £231,228

The transition to a VDC results in a 51% reduction in IT infrastructure costs, eliminating expensive hardware refresh cycles and reducing network expenses.

Why Choose Digital Carbon for Your VDC Migration?

Digital Carbon offer comprehensive VDC solutions tailored to modern business needs. The services include:

  • Expert Design and Seamless Migration: Tailored solutions and assistance in transitioning workloads without downtime.
  • Managed Connectivity: Reliable network performance under a single SLA.
  • 24/7 Support: Round-the-clock monitoring and technical assistance.
  • Predictable Billing: Transparent pricing without unexpected charges.
  • Future-Proof Infrastructure: Scalability to accommodate business growth without additional hardware investments.

Conclusion: The Time to Migrate is Now

Broadcom’s VMware licensing changes have left businesses scrambling for cost-effective alternatives. Migrating to a Virtual Data Centre provides a solution that not only avoids excessive subscription fees but also enhances scalability, security, and operational efficiency. By integrating SD-WAN, organisations can ensure high-performance connectivity while reducing infrastructure costs.

For businesses looking to escape Broadcom’s price hikes and future-proof their IT infrastructure, partnering with a VDC provider like Digital Carbon is the smart choice. Ready to make the switch? Contact our experts today and take control of your IT costs before they spiral out of reach.

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DIGITAL CARBONHeadquarters
Our head office is located in the tech hub of East London Tech City
OUR LOCATIONSWhere to find us?
KEEP IN TOUCHFollow Us
To stay up to date with the latest news and technologies, follow us on our social media channels.

Copyright by Digital Carbon. All rights reserved.

Copyright by Digital Carbon. All rights reserved.