May 16, 2025

Rethinking virtualisation: strategic choices for a modernised data centre

Leon Scott
National Practice Manager - Data Centre

In the wake of Broadcom’s acquisition of VMware, many organisations are reevaluating their virtualisation strategies. But this isn’t just about licensing changes or vendor disruption—it’s a broader opportunity to ask a bigger question: What does it mean to have a modernised data centre; and what does that really look like?

At Data#3, we’re having this conversation with an increasing number of customers who are looking beyond a like-for-like replacement of their virtualisation stack. Instead, they’re asking: What workloads do I need to modernise? Which ones can move to the cloud? And what needs to stay put?

That’s where HPE Virtualization Management Essentials (VME) comes in—not as a direct VMware replacement, but as an alternative for the right workloads, backed by open-source flexibility and enterprise-grade support.

Not a replacement, but an alternative

Let’s be clear—HPE VME isn’t trying to be a VMware clone. It’s built for specific scenarios and is ideal for stable, predictable workloads that don’t demand complex networking, storage orchestration, or fine-grained performance tuning.

VME provides a simple, reliable hypervisor platform for organisations that want to keep certain workloads virtualised, but without the high overhead or long-term vendor lock-in that often comes with other solutions.

For high-performance, heavily integrated environments, VMware still reigns. But if you’re spinning up basic VMs or supporting workloads that don’t require constant attention, VME offers a practical, cost-effective path forward.

Built on open source, backed and supported by HPE

At the core of VME is KVM, a battle-tested, open-source hypervisor. HPE wraps this in a hardened enterprise-grade offering, complete with patching, monitoring, support, and lifecycle management.
 
This brings the flexibility and low cost of open source, without the operational risk. Think of it like what Red Hat did with Linux: take something powerful but raw and make it safe, supported, and scalable for enterprise environments.
 
For organisations wary of proprietary licensing or escalating subscription costs, this model is a breath of fresh air.

Data centre modernisation: start with strategy

This is not just about switching platforms. In fact, a direct “lift-and-shift” from VMware to another hypervisor rarely makes sense. The real opportunity is to step back and assess your broader infrastructure:

Modernisation doesn’t happen in a vacuum. That’s why we recommend a structured assessment of your environment so you can map out a phased approach that balances risk, cost, and innovation.

For workloads that can’t be easily modernised, that’s where VME shines, giving you an open, supported platform to keep those systems running efficiently and cost-effectively.

Transitioning at your own pace—with help from Morpheus

As part of the VME offering, HPE includes a monitoring and management layer powered by Morpheus. This gives you a single-pane-of-glass view across your virtualisation stack, including VME and VMware environments.

This isn’t about managing dozens of hypervisors—it’s about simplifying transitions. As part of your modernisation strategy, you may explore solutions like Azure Local (formerly Azure Stack HCI), and as you move some workloads to these platforms or containers, others may still reside on VMware for a while. The Morpheus platform helps bridge that gap, keeping visibility high while complexity stays low.

And because it’s built on open standards, Morpheus supports infrastructure-as-code principles, helping you build toward a more automated, agile future.

The cost of change is real – plan accordingly

While frustration with Broadcom’s licensing model is understandable, jumping ship without a plan can be even more costly. Migration, retraining, downtime, and integration complexity all carry hidden expenses.

That’s why a clear modernisation plan with gradual transition strategies is so important—and why tools like Morpheus and platforms like HPE VME can make a big difference. They offer flexibility without forcing an all-at-once migration. You decide the path and pace.

The bigger picture: AI, cloud, and what comes next

Modernisation isn’t just about cost control – it’s about enabling the next generation of IT innovation. Whether that’s integrating AI workloads, leveraging cloud-native services, or building developer-friendly environments, your virtualisation strategy needs to support the future, not just sustain the past.

Take the first step

To help organisations start their journey, Data#3 has developed a Data Centre Modernisation Assessment*. This comprehensive assessment includes an in-depth analysis of your current environment and tailored recommendations for leveraging various platforms and technologies.
 
Sometimes, remaining on VMware and optimising your workloads and infrastructure may be the best option. In other cases, newer technologies like Azure Local may give you the flexibility of hybrid cloud, while still allowing you to leverage services like PaaS or containers in both public cloud and on-premises.
 
In addition to the Data#3 Datacentre Modernisation Assessment, Microsoft, in partnership with HPE, are working with Data#3 to provide a unique Azure Local Boost Program targeted specifically at workloads that are suitable for Azure Local infrastructure.
 
We look at your on-premises workloads and your Azure Public Cloud workloads to assess and recommend options to deliver the best “Adaptive Cloud” experience for your organisation. The Data#3 Datacentre Assessment and the Azure Local Boost Program can be run together as an extensive activity or run independently of each other, depending on your specific requirements.

 

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