The Power Of Deep Observability In Facilitating VMware Migrations

Broadcom’s acquisition of VMware in late 2023 marked a significant turning point for enterprises relying on VMware’s virtualization solutions. Since the deal closed, Broadcom has implemented substantial price increases across VMware’s product lines, and in the process radically changed the compensation structure for its IT channel partners. These have been bold moves, leaving many of VMware’s customers and sellers searching for alternatives from business continuity and technical perspectives.

In this article, I will unpack the downstream effects of Broadcom’s strategy for VMware and provide my thoughts on how competing network observability solutions could play a role in providing enterprises with an alternative migration path.

Financial And Operational Impacts On Enterprises

VMware has long been a trusted provider of enterprise-grade virtualization and cloud computing solutions. Enterprises globally depend on VMware’s suite of products, including vSphere, NSX and vSAN, to get the most out of private clouds and hybrid IT environments.

It is well documented, for example in the recently settled lawsuit between AT&T and Broadcomthat licensing fees for many VMware solutions have risen two- to three-fold or even more since the acquisition by Broadcom. These price increases have impacted both existing and prospective VMware customers, creating financial strain on IT budgets that have already been under fire for the past few years because of inflationary pressures. To many, the price increases undermine VMware’s core value proposition of delivering infrastructure flexibility and scalability at a reasonable cost. Furthermore, many customers have architected their infrastructure deployments around VMware-specific platforms and APIs. This makes a migration away from VMware complex and labor-intensive, potentially increasing costs even more.

Technical Challenges And Channel Seller Concerns

Digging into the technical challenges, many enterprises have deeply integrated VMware into their IT ecosystems. In many cases, this includes dependencies on VMware’s hypervisor technology, software-defined datacenter platform and management tools. Choosing an alternative is not a simple rip-and-replace exercise, given the mission-critical role that VMware plays in the virtualization of workloads and the technical leadership that the company has traditionally exerted.

Broadcom’s cost-cutting reputation also leaves many to wonder if it could stifle VMware’s future product portfolio innovation efforts in the longer term. VMware has historically been a leader in virtualization advancements, from container support with Tanzu to robust hybrid cloud solutions. A potential slowdown in new solution development could leave enterprises at a disadvantage in rapidly evolving cloud markets. The likelihood of that happening may be more remote given the company’s announcements at its Explore event earlier this year (which elicited an optimistic analysis from my colleague Matt Kimball), but it’s still a risk.

Beyond that, given Broadcom’s swift reconfiguration of VMware’s channel sales program, some speculate that customer support and service delivery could suffer as partners seek other, more profitable alternatives. The company has radically reduced the number of SKUs it offers, and that simplification is a good thing for channel sellers. However, as a former channel sales and marketing executive, I know first-hand that IT channel partners are keen to sell solutions that are priced competitively and supported by richer sales and marketing incentives. Time will tell if Broadcom’s “rip off the Band-Aid” approach to seller compensation will reap the rewards that it promises.

The Importance Of Deep Observability In Hybrid Workloads

Given these concerns, many organizations that have standardized on VMware are reevaluating their strategies and methodologies to enhance visibility and control over IT and OT environments. One emerging consideration is further investment in deep observability solutions across hybrid workloads. The value in doing so is significant: Network and data observability tools can help enterprises identify underutilized resources or inefficiencies in VMware environments, providing actionable insights to help them take full advantage of current VMware licenses—and potentially reduce costs by circumventing the need to extend those licenses in the future. By monitoring workloads across private and public clouds, observability solutions can also ensure that virtual machines and cloud-native applications operate seamlessly across hybrid and multi-cloud architectures.

Additionally, deep observability offers valuable security and migration advantages. It aids in identifying and mitigating the security threats created by the disaggregated nature of hybrid infrastructure deployments. For VMware customers considering migration to alternative environments, observability solutions provide a clear understanding of existing dependencies and resource utilization.

Network Observability Solution Leaders

A plethora of infrastructure providers enable organizations to leverage the power of network and data observability. However, two companies stand out within the ranks of observability solution providers: Cisco and Gigamon. Cisco has built a formidable portfolio in observability through its internal development efforts, along with its acquisitions of AppDynamics and ThousandEyes and most recently its mega-acquisition of Splunk.

Splunk provides critical abilities for Cisco in data observability, as well as significant capabilities in security information and event management, ransomware tools, industrial IoT vulnerability alerting and user behavior analytics. Splunk also provides depth in orchestration and digital experience monitoring that includes visibility into the performance and assurance of underlying IT and OT networking infrastructure. As networking and security continue to converge from a software-defined standpoint, Cisco is well positioned to help enterprises navigate the rocky landscape created by Broadcom’s VMware acquisition.

Gigamon is another market leader delivering deep observability solutions that address the challenges posed by hybrid and multi-cloud environments. The Gigamon Deep Observability Pipeline provides comprehensive visibility into network traffic, enabling IT teams to effectively monitor, secure and optimize their hybrid cloud infrastructures. A standout Gigamon feature is its ability to unify observability across diverse environments, including VMware-based datacenters, public clouds such as AWS and Azure and containerized platforms such as Kubernetes. This feature is especially beneficial for companies managing the complexities of hybrid and multi-cloud deployments. Additionally, Gigamon integrates readily with existing IT tools, allowing organizations to extend their observability capabilities without overhauling current infrastructure deployments. This adaptability is crucial for enterprises seeking cost-effective ways to enhance their operations without incurring additional expenses.

Alternative Solution Considerations

Transitioning away from VMware is not straightforward and requires careful planning. Public cloud providers such as AWS, Microsoft Azure and Google Cloud offer robust alternatives to VMware. Each has services designed to support virtualized workloads, including Amazon Elastic Compute Cloud, Microsoft Azure VMware Solution and Google Cloud VMware Engine. These cloud services allow businesses to leverage cloud scalability while gradually reducing the potential reliance on VMware.

There are also several open-source alternatives to VMware. Open-source virtualization platforms such as Kernel-based Virtual Machine and Proxmox VE are gaining traction as cost-effective alternatives. While these platforms require skilled IT teams for deployment and ongoing management, they eliminate licensing fees, providing long-term savings. For enterprises committed to on-premises infrastructure, other vendors such as Nutanix and Red Hat offer viable options. Nutanix provides hyper-converged infrastructure solutions, while Red Hat’s open-source Kubernetes-based platform caters to modern application deployment needs.

A phased approach combining on-premises, public cloud and alternative virtualization technologies can mitigate migration risks for enterprises that want to find viable alternatives to VMware. Businesses might consider migrating non-critical workloads to the cloud while retaining mission-critical applications on VMware as a short-term solution. Longer term, it is incumbent for IT operators to adopt a multifaceted strategy, including investing in observability solutions, evaluating total cost of ownership, developing a migration roadmap and engaging with partners to evaluate alternatives while monitoring Broadcom’s current and future actions.

Observability To The Rescue

Broadcom’s acquisition of VMware and subsequent price increases have introduced significant challenges for enterprises reliant on VMware’s virtualization solutions. The financial and technical concerns associated with these changes dictate a reassessment of IT strategies, especially to avoid vendor lock-in. Deep data and network observability can serve a critical function in managing hybrid workloads, optimizing resources and utilization and ensuring seamless operations across public and private clouds.

It’s worth emphasizing the obvious point that any migration of this complexity requires careful planning to minimize disruption and maximize return on investment. Enterprises must balance short-term operational needs with long-term strategic goals, ensuring their IT environments remain agile, secure and cost-effective in a rapidly evolving technology marketplace.

Over time, Broadcom’s pricing strategy for VMware may spur innovative approaches as its current customers adopt competitive offerings and diversify their virtualization solutions. As businesses adjust to a new normal, I believe this evolution will shine a light on the importance of observability solutions within a migration journey for those customers that wish to explore alternatives.