In the first two blogs of our HPE Data Centre Modernisation Series, we explored how flexible financial models can unlock stalled refresh projects and compared the cost curve of AI testing versus production. In this final instalment, we focus on how organisations can navigate VMware licensing changes and adopt a more agile, cost-conscious approach to virtualisation.
Many Australian companies are reviewing their virtualisation strategies as the market continues to adapt to Broadcom’s acquisition of VMware. With changes to licensing, pricing, and support models, it’s a prime opportunity for organisations that depend on VMware as the core of their data centres to reassess their operations.
While customers aren’t dissatisfied with VMware’s technology, they are cautious about rising costs, subscription lock-ins, and the long-term effects of vendor dominance. For many, it’s not about completely abandoning VMware, but about regaining strategic and financial flexibility. This said, we are seeing the focus shifting from “what’s my next virtualisation platform?” to “what combination of models will let me evolve without taking on unnecessary risks?”.
This isn’t just about VMware; it’s a broader trend across industries where changes to vendor licensing models prompt reviews. Essentially, it’s about control and ensuring the organisation drives the pace of change, not the other way around.
In times of uncertainty, rushing to replace one virtualisation platform with another might seem like a decisive move, but it can backfire. A full migration is disruptive, requiring extensive planning, staff retraining, and downtime that most organisations cannot handle. The return on investment for a move like this is unclear, especially when the technology strategy is still developing.
Instead, organisations should use this moment to re-evaluate what their modernised data centre should, and could look like, and which workloads are best suited for different environments including public cloud, hybrid, or on-premises.
Rather than a complete overhaul, gradual migration supported by flexible commercial models enables organisations to move forward safely. As an example, customers can start small by deploying HPE Virtualization Manager (VME) for lower-tier workloads, allowing them to get up and running quickly and then scale gradually as their needs grow.
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. When looking at the associated financial models too, there are various options with claims from HPE that in some cases licensing costs are reduced by up to 90%1.
This method reduces both operational and financial risk. Low-priority workloads can be migrated initially, allowing IT teams to test options in real-world conditions. Over time, workloads can be reallocated based on performance, cost, and business needs. Legacy VMware environments can then be gradually retired, avoiding the complexity of running parallel systems or forced cutovers.
More and more, we are seeing that most organisations will operate in a hybrid state for the foreseeable future. Organisations don’t have the luxury of a “rip-and-replace” mentality, and they don’t actually need to.In practical terms, this means VMware will continue to coexist with newer platforms, such as HPE VME, Microsoft Azure Local, or container-based solutions for several years. To manage this coexistence, tools like HPE Morpheus VME, offer unified management and visibility, especially during transition, allowing teams to modernise at their own pace
This model of hybrid continuity prevents “double-paying” for infrastructure while offering the flexibility to modernise workloads selectively, whether that involves keeping stable systems virtualised, containerising others, or shifting specific services to the cloud.
Our team consistently emphasises one key idea in conversations with customers: commercial flexibility drives technical freedom. Flexible financing options, like consumption-based or as-a-service models, allow customers to adjust their infrastructure as strategies shift, without committing to long-term hardware or software commitments.
This isn’t just about financial prudence; it’s about giving control to allow customers to start small and expand as their business needs grow. The ability to scale infrastructure use based on need turns what was once a fixed capital expense into a flexible business tool.
The VMware landscape is shifting quickly, but rushing to swap one vendor for another isn’t always the right approach. The smarter move is to take a step back, evaluate your workloads, and ensure your commercial model matches your strategy.
Data#3’s Data Centre Modernisation Assessment, supported by HPE and Microsoft, offers the framework to achieve this. It helps you determine which workloads are suitable for modernisation, which should stay virtualised, and how flexible commercial models can minimise risk during the transition.
Whether you choose to stay with VMware, adopt HPE VME, or move toward a hybrid environment, Data#3’s team of Solution Specialists is well positioned to help help you modernise on your own terms, at your pace, and within your financial comfort zone.
Speak to our team of HPE Specialists today
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