Why are VMware/Broadcom costs increasing so dramatically?
Since Broadcom acquired VMware, customers have reported price increases ranging from 100% to over 600%, depending on their previous licensing model and estate size. Broadcom has discontinued many long-standing bundles and replaced them with fewer, more expensive subscription tiers. On top of that, support models have changed, partner programmes have shrunk, and customers face pressure to commit to all-or-nothing platform agreements.
For organisations already working to optimise spending, these changes go beyond inconvenient. They are unsustainable. As a result, demand for credible, enterprise-grade alternatives that offer predictable economics and long-term stability has surged.
How big is the shift toward OpenShift Virtualisation?
Industry analysts agree that Broadcom’s acquisition of VMware has triggered one of the most significant shifts the virtualisation market has seen in decades. Gartner describes the server‑virtualisation landscape as undergoing “the most significant disruption in decades” following the acquisition, with many organisations now exploring alternatives. Forbes magazine reports a “mass exodus” of VMware customers evaluating replacement platforms due to steep price increases and licensing changes.
Red Hat has also stated publicly that interest in OpenShift Virtualisation has “accelerated sharply” since Broadcom’s licensing changes, as organisations look to reduce dependency on VMware. The message is therefore clear: organisations are no longer willing to accept unpredictable pricing and shrinking flexibility; they are seeking alternative solutions.
What is Red Hat OpenShift Virtualisation and why is it gaining traction?
Red Hat’s OpenShift Virtualisation extends the OpenShift container platform to run virtual machines alongside containers on a single, unified infrastructure. In practical terms, it allows organisations to replace VMware’s hypervisor layer with a modern, cloud-native platform without abandoning their existing VM workloads.
Several factors drive OpenShift Virtualisation’s growing popularity:
Cost. Organisations consistently find that OpenShift Virtualisation delivers a lower total cost of ownership compared to VMware’s new subscription model.
Modernisation. OpenShift Virtualisation provides a unified platform that reduces operational overhead by consolidating VMs and containers. It also allows organisations to modernise in place as they refactor VM workloads to containers over time.
Support. Red Hat backs it with enterprise-grade support, and its architecture aligns with cloud-native transformation strategies.
Provenance. Thousands of enterprises across financial services, telecoms, government and healthcare already rely on OpenShift Virtualisation in production.
As organisations modernise, the appeal of consolidating virtualisation and container platforms into one strategic investment becomes increasingly compelling.
What does a migration from VMware to OpenShift look like?
This is the question every CIO asks, and it is a key reason Northdoor created the OpenShift Virtualisation Migration Assessment. The assessment provides a structured, evidence-based view of what a transition would involve:
- A full review of the current VMware estate.
- Detailed mapping of VM workloads to OpenShift Virtualisation.
- Identification of dependencies, risks and potential migration blockers.
- A clear view of the skills, resources and platform components required.
- Cost modelling that compares VMware and OpenShift Virtualisation economics.
Our goal is simple: replace uncertainty with clarity and give organisations the information they need to make confident, strategic decisions.
Why do organisations choose Northdoor for OpenShift migration planning?
This is not a generic technology shift. It is a strategic transformation. Organisations choose Northdoor because we bring deep expertise in Red Hat technologies, including OpenShift, RHEL and automation. We also have extensive experience supporting clients in highly regulated sectors where governance, compliance and resilience are non-negotiable.
Our approach is pragmatic and evidence-driven. We cut through hype and focus on real-world outcomes. In addition, we maintain a vendor-neutral perspective, which means our recommendations reflect what is right for the organisation, not what is easiest to sell.
With more than 30 years of experience helping organisations modernise infrastructure, we understand the operational, financial and political realities behind major platform decisions. We are not afraid to challenge assumptions or highlight risks that others overlook.
Is OpenShift virtualisation really a like‑for‑like VMware replacement?
Not exactly. And that is the point. VMware is a traditional hypervisor platform. OpenShift Virtualisation, by contrast, is a cloud-native platform that supports both VMs and containers. This gives organisations a path to modernisation without forcing an immediate rewrite of applications.
For example, legacy Windows or Linux VMs can run unchanged on OpenShift Virtualisation, while new microservices deploy as containers alongside them. Furthermore, teams can introduce automation and GitOps gradually as they consolidate tooling and skills. This hybrid model is one of the biggest reasons organisations explore it as a strategic alternative.
Take the next Step
If rising VMware/Broadcom costs are forcing you to rethink your virtualisation strategy, now is the time to explore your options. Northdoor’s OpenShift Virtualisation Migration Assessment gives you the clarity, confidence and evidence you need to make an informed decision.
Don’t wait for your next renewal to dictate your strategy. Contact Northdoor to schedule your assessment.