This year, a wave of virtualization vendors is poised to compete fiercely for enterprises unhappy with how Broadcom has managed VMware. These vendors aim to either take on the full virtualization stack or focus on specific components, with many existing open-source projects seizing the moment to make an impact in data centers.
Bruce Kornfeld, chief marketing and product officer at StorMagic, believes IT admins will start exploring alternatives in 2025, even if some customers are still tied to contracts with VMware or Broadcom. StorMagic isn’t alone; it joined other vendors, including Hewlett Packard Enterprises (HPE) and smaller veterans like VergeIO, who introduced new virtualization options last year.
Kornfeld pointed out that since Broadcom made waves in the market, larger customers can’t just jump off VMware overnight. But he sees 2025 as a turning point when many will finally make a change.
Marc Staimer, founder of Dragon Slayer Consulting, noted that open-source projects like OpenStack, Proxmox, and OpenNebula are evolving into solid choices for enterprises. While marketing may attract customers, Staimer and others caution that the decision-making process for adopting new virtualization tech will unfold over several years. “People aren’t going to move right away; it’s going to take time,” he said.
Naveen Chhabra, a principal analyst at Forrester Research, added that open-source solutions offer cost-effective alternatives to commercial hypervisors, provided IT admins have a clear understanding of their business needs. For example, Proxmox can meet general virtualization demands, while OpenStack caters more to private cloud services, akin to VMware or Nutanix.
For smaller businesses, open-source offerings may suffice. But larger enterprises often require more sophisticated controls and broader software ecosystem integrations. “Proxmox works for a small shop, but for a company with thousands of employees needing strict policies, you need enterprise-class solutions,” Chhabra explained.
In the conversation about alternatives to VMware, Nutanix frequently comes up, largely due to its marketing. HPE recently launched HPE VM Essentials as a competitive alternative, leveraging tech from its acquisition of Morpheus Data last year. This Linux-based hypervisor can integrate with HPE’s GreenLake cloud platform or function independently.
Despite HPE’s venture into alternative offerings, they still regard VMware as a key partner. Bryan Thompson, HPE’s vice president of cloud product management, emphasized that their offerings are designed for customers keen on experimenting with transitioning to the cloud. Many are eager for alternatives, but they also recognize the value of having a comprehensive service portfolio with HPE.
Interestingly, while HPE is adapting to customer demand, Chhabra noted the company’s guarded marketing strategy may lead them to be overlooked as a viable VMware alternative, which could ultimately benefit their ongoing hardware partnership with Broadcom.
Naveen highlighted that switching vendors involves aligning enterprise goals with the strategies and services of the new vendor, whether it’s the open-source ethos of Proxmox, the hyper-converged infrastructure of VergeIO, or the comprehensive solutions from Nutanix.
Roy Illsley from Informa TechTarget’s Omdia remarked that most enterprise customers are sticking with VMware under Broadcom, despite the buzz from competitors. He sees VMware’s stability and support as key reasons many large enterprises remain loyal.
While Illsley acknowledges the gradual shift towards cloud computing and containerization, he believes it will be a slow transition away from VMware. He predicts a mix of models in the coming years, stating, “It’s a complex arrangement of computing bits; nobody’s ready to clear the table.”
Ultimately, he sees this year as critical for Broadcom, as they strive to keep customers engaged while buyers figure out their needs in the evolving landscape of virtualization. With the competition more intense than ever, some customers may switch, while others may hesitate, resulting in varied paths ahead.