VMware Licensing Update: Perpetual to Subscription Model

The landscape of software licensing is changing, and VMware is no exception. The company has announced a shift from its traditional perpetual licensing model to a subscription-based model. This change aims to provide greater flexibility, ongoing updates, and better cost management and will affect all companies that are using VMware services

Thus, Broadcom Inc. and Google Cloud announced plans to support license portability of VMware Cloud Foundation to Google Cloud VMware Engine. Customers will be able to purchase subscriptions to the new VMware Cloud Foundation software from Broadcom and flexibly use those subscriptions in Google Cloud VMware Engine, as well as their own on-prem data centers. Customers will retain the rights to the software subscription when deploying VMware Cloud Foundation on Google Cloud VMware Engine and have the ability to move their subscription between supported environments as desired.

What’s the Change?

Perpetual Licensing: Traditionally, VMware offered perpetual licenses, allowing users to purchase software licenses upfront and own them indefinitely with the option to pay for ongoing support and maintenance.

Subscription Licensing: The new model transitions to subscription-based licensing, where users pay a recurring fee for access to the software and its updates.

What VMware’s New Subscription Model Means for You

Cost Structure: The most immediate impact is the change in cost structure. Instead of a one-time upfront payment, businesses will now face recurring subscription fees. This can affect budgeting and financial planning, requiring a shift towards operational expenditure (OPEX) rather than capital expenditure (CAPEX).

Software Updates and Support: Subscription models typically include access to the latest software updates and support services. This can be advantageous for businesses that rely on staying current with the latest features and security patches. 

Pay-As-You-Go Flexibility: Some subscription models offer pay-as-you-go options, allowing businesses to scale their usage up or down based on actual needs and only pay for what they use.

To complement this shift, we encourage you to consider leveraging Google Cloud’s solutions designed to optimize your VMware environments

Effortless Migration and Integration: Move your virtual machines and workloads to Google Cloud seamlessly and leverage Google’s advanced networking infrastructure for optimal performance.

Streamlined Operations: Manage your cloud resources using familiar VMware tools while accessing containerized applications. Enjoy a unified Google Cloud experience with integrated identity management and quick self-service provisioning.

Cost Efficiency: Scale your workloads on Google Cloud Platform and pay only for what you use, reducing operational expenses. Lower your total cost of ownership by minimizing hardware investments and installation costs.

Unlocking Data Insights: Combine your VMware environment with Google Cloud services like BigQuery, AI, and Machine Learning to extract valuable insights from your data.

Enhanced Reliability and Security: Benefit from industry-leading security features, including private high-speed networking and dedicated cluster design. Ensure enterprise-grade availability with 99.99% uptime and 100Gbps of dedicated connectivity.

Profitable Outcomes Driven by Google Cloud VMware Engine
Google Cloud VMware Engine
  • 38% of Average TCO Savings: Reduce the cost of resources and create a predictable OPEX run rate 1
  • 11.2 months of Average Time Savings: Migrate workloads in minutes while paying only for the resources and capacity you need in an “-as a Service” model
  • US$115K Average Labor Savings per year: Use the VMware and GCP tools you know, saving time in operations and training.2
  • 78% of VM migrations realize payback in one year or less2
  • US$2.15M savings in 3-year average2

Ready to Explore Google Cloud VMware Engine?

We understand that changes in licensing models can prompt questions and considerations. Master Concept is here to assist you in making a smooth transition and to help you capitalize on the efficiencies and innovations that the subscription model offers.

Master Concept, as the first Asia Google Cloud Partner for Google Workspace (G Suite), Google Maps Platform, Google Cloud Platform, and Google Search solutions, awarding the Top 3 Google Cloud Partners in Asia and the Top 20 Google Cloud Partners in the World

Master Concept has assisted over a thousand enterprises across various sizes and industries to introduce Google Workspace to their business. It provides consulting, technology introduction, data migration, and after-sales training to assist enterprises in their journey to the cloud.

Contact us for more details on how these changes can be implemented seamlessly within your operations.

1. 2022 TCO Assessment Studies over 18-Month Horizon, VMware Cloud Economics Team and 2022 Google
Cloud Internal Customer Studies
2. IDC Infobrief: Strategies for Successful Migration to Public Clouds, Oct. 2021 (IDC #US48321221)

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