Identifying hidden costs of VMware migration
Migrating from VMware, often driven by the pursuit of cost optimization following changes in Broadcom's licensing policy, is not limited to direct licensing fees. Hidden costs can include staff training, downtime during the transition, integration with existing systems, and expenses for support and management tools.
For instance, retraining an IT team for a new platform can take 4-8 weeks. Migration can lead to planned downtime, which for a company with an annual revenue of €10 million, could result in a loss of €1142 per hour1. The necessity of running old and new infrastructure in parallel for 3-5 years during a phased migration also represents a significant hidden cost.
Evaluating licensing models and their impact on TCO
Changes in VMware licensing following its acquisition by Broadcom have drastically impacted the total cost of ownership (TCO). Broadcom discontinued perpetual licenses, transitioning exclusively to a subscription model. This means that a license is not owned but used as long as subscription fees are paid. Furthermore, many VMware offerings now require a minimum of 72 cores per purchase, which can significantly affect small clusters and edge deployments. Some customers have reported an 800-1500% increase in upgrade costs2.
Alternative platforms like Proxmox VE, Microsoft Hyper-V, or Nutanix AHV offer different licensing models, affecting TCO. Hyper-V is often bundled with Windows Server, making it attractive for Microsoft-centric organizations by reducing direct virtualization licensing costs. Proxmox VE is open-source and has no licensing fees, though it requires expenses for support and expertise, which are hidden costs. When assessing TCO, it's crucial to consider not only license costs but also operational costs for administration and maintenance, which can significantly increase when transitioning to a new, less familiar platform.
Verifying infrastructure and application compatibility
Before migration, it is critically important to conduct a thorough audit of existing infrastructure and applications to avoid hidden costs of modernization or downtime due to incompatibility. This includes checking the compatibility of hardware, operating systems, and virtual machine versions with the new platform. Broadcom provides a Compatibility Guide to help find information on the compatibility of hardware, operating systems, and other components with VMware products.
A complete inventory of all virtual machines must be performed, including their OS, resource allocation (vCPU/RAM/disk), running services, and owners. Special attention should be given to identifying application dependencies using tools for mapping network flows. Compatibility issues can arise with drivers (e.g., VirtIO for Windows VMs when migrating to KVM-based platforms like Proxmox VE), as well as with VMware Tools or vSphere API integration, leading to hidden adaptation costs.
Assessing operational skills and training needs
Migrating to a new virtualization platform inevitably impacts the operational skills of IT personnel, which is a significant hidden cost. Even if the new platform seems similar to VMware, the team will need time to adapt and learn. This includes learning new management tools, monitoring procedures, and backup and recovery processes.
For example, transitioning to Proxmox VE or Hyper-V will require administrators to become familiar with their specific interfaces and command lines. It is necessary to evaluate the team’s current skill level, the availability of external experts, and the cost of certification courses or training. Underestimating these costs can lead to increased operational complexity, reduced efficiency, and heightened risks during and after migration.
Rollback mechanism: Planning and testing
Planning a rollback mechanism is critically important for minimizing hidden risks and costs during migration. Each migration wave should have clearly defined criteria that trigger a rollback, and responsible individuals with the authority to initiate it. A rollback may be necessary in case of compatibility issues, failures during an upgrade, or unsatisfactory performance of the new system.
Rollback strategies can include running old and new infrastructure in parallel for a certain period or phased migration with the ability to revert to the previous state. Testing the rollback mechanism on non-critical VMs before migrating production workloads is a mandatory step. This allows verification that RPO/RTO SLAs are met on the new platform and that recovery works properly, preventing prolonged downtime and financial losses. Softline IT assists in planning and implementing virtualization and VDI solutions, and provides IT consulting services for infrastructure audits.
Pros and cons of migrating from VMware
| Pros | Cons |
|---|---|
| Potential long-term optimization of licensing costs. | High initial hidden costs for staff training and integration. |
| Reduced vendor lock-in and dependence on a single vendor’s licensing policy. | Risks of hardware and application incompatibility, requiring additional investments. |
| Opportunity to leverage open-source or more flexible licensing models. | Potential downtime during migration and risks of failed rollback. |
| Access to new virtualization technologies and tools. | Increased operational complexity in the initial stages. |
Checklist for assessing VMware migration
| Assessment criterion | Details to check |
|---|---|
| Licensing costs (direct and indirect) | Check: Broadcom’s new VMware licensing model (subscription, minimum 72 cores, bundles). Comparison with alternatives (Proxmox VE, Hyper-V). Risk: Increased upgrade costs, payment for unused components, hidden costs for open-source solution support. |
| Hardware and software compatibility | Check: Compatibility of existing servers, network equipment, and storage systems with the new platform. Use Broadcom Compatibility Guide and similar resources for other platforms. Risk: Need for hardware modernization, leading to additional capital expenditures. |
| Application compatibility and dependencies | Check: Full inventory of VMs, OS, resources, running services. Application dependency maps. Risk: Critical application failures after migration due to incompatibility or overlooked dependencies, which is a hidden operational cost. |
| Staff training costs | Check: Assessment of the required skill level for the new platform. Cost of training and certifications. Risk: Decreased productivity, operational errors, need to hire new specialists – all hidden costs. |
| Availability of expertise | Check: Presence of internal specialists or external consultants with experience on the target platform. Risk: Lack of support, increased problem-resolution time, which is a hidden operational cost. |
| Operational management complexity | Check: New management, monitoring, backup, and recovery tools. Automation. Risk: Increased operational burden, complexity of integration with existing processes, which is a hidden operational cost. |
| Rollback plan (existence, testing) | Check: Clearly defined rollback criteria, responsible parties, tested rollback procedures for migration to the new platform. Risk: Inability to revert to a stable state in case of failed migration, prolonged downtime, which is a significant hidden cost. |
| Downtime (planned and potential) | Check: Assessment of acceptable downtime for each VM. Planning migration during maintenance windows. Risk: Exceeding acceptable downtime, financial losses, reputational risks – all hidden costs. |
| Integration costs with existing systems | Check: Compatibility with monitoring, security, identity management, and backup systems. Risk: Need to replace or significantly adapt existing tools, which is a hidden cost. |
| Vendor and community support | Check: Level of support from the new platform vendor, community activity (for open-source solutions). Risk: Limited support, reliance on internal expertise, which is a hidden operational cost. |
Softline IT helps teams plan and implement virtualization and VDI, from an assessment of the current environment to an agreed change plan.
