Virtualization in 2024: Hypervisors, Competition, and the Broadcom Effect

Hypervisor alternatives to VMWare

Broadcom’s acquisition of VMware is pushing companies to rethink their virtualization strategies. Discover the best hypervisor alternatives to VMware, key factors for selecting the right solution, and how these changes impact your IT infrastructure.

The cloud and IT infrastructure world has been turbulent this year, primarily due to the significant industry shakeup caused by Broadcom’s acquisition of virtualization leader VMware in late 2023. The high-profile deal and soon-followed changes to VMware’s approach to customer and partner relationships sparked mixed reactions and debate across the industry and the media. As VMware’s restructuring led to higher prices and reduced availability of some products for some enterprises, many organizations began to re-evaluate their long-standing reliance on the company’s offerings and seek alternative virtualization vendors that provide similar capabilities at more reasonable prices.

See also: Red Hat Marries Linux and AI into a Platform for AI

At the heart of this shift is a renewed focus on hypervisors, the essential yet often overlooked technology that powers virtualization. For IT leaders evaluating their options, understanding the role of hypervisors is critical. This article explores the fundamental importance of hypervisors to virtualization and their role in today’s IT infrastructure landscape.

(Re-)Introduction to Hypervisors

The hypervisor is a software layer that allows multiple virtual machines (VMs) to run on a single physical server. By allocating resources like CPU, memory, and storage to each VM, hypervisors make it possible to run several operating systems and applications on the same hardware. This virtualization enables more efficient resource use, simplifies maintenance, and cuts costs, making hypervisors a cornerstone of modern cloud computing.

Before the rise of virtualization in the early 2000s, most physical servers operated as single-tasking machines running only one operating system. While this setup provided stability, it also led to inefficiencies, with hardware resources often underutilized. To scale, organizations had to expand their IT infrastructure by adding more servers, resulting in higher costs and maintenance efforts without fully utilizing the resources. 

Putting this into perspective, physical servers often run at less than 2% of processor utilization for much of their lifecycle, with only occasional spikes in usage. This is highly wasteful as each server consumes large amounts of energy, requires resources for cooling and takes up valuable space in data centers. With millions of servers in operation around the world 24/7, the scale of waste is staggering.

Hypervisors are the solution to this massive drain of resources as they allow multiple virtual servers to be hosted on a single physical machine on the premise that not all of them will need full power (or CPU utilization) simultaneously. Another major advantage is that when you scale out, you can run hundreds of VMs across multiple physical machines, meaning that if a physical server fails, the VM workload running on that machine can migrate to another physical machine. 

Understanding Hypervisor Diversity and the Impact of the Broadcom-VMware Deal

The hypervisor market offers a variety of vendors, each with different features and benefits that could be tailored to varying needs of a particular organization. Among the leading options are VMware ESX, Microsoft Hyper-V, and KVM, each offering specific advantages.

VMware ESX is a mature platform with a proven track record for enterprise-grade security, performance and reliability. It works well with Linux or Microsoft-based deployments, making it a strong contender for organizations. However, with VMware’s new pricing structure, it may be too expensive for some organizations. Microsoft Hyper-V integrates seamlessly with Windows and Azure, making it attractive to companies working within the Microsoft ecosystem. While the product may be more cost-effective for smaller deployments, its price may escalate over time as the business grows. Another popular product is KVM – an open-source hypervisor, making it interesting for Linux based environments. It offers a flexible, secure, cost-effective solution for IT managers seeking open-source deployments. 

Broadcom’s acquisition of VMware has profoundly impacted the virtualization landscape, prompting many organizations to reconsider their reliance on VMware. The deal has introduced significant changes to VMware’s relationship with its customers, including the elimination of perpetual licenses, a shift toward subscription-based models, and reduced support for legacy products. As a result, businesses face increased costs and growing uncertainty, which has driven many to explore alternative vendors.

The hypervisor market has become more competitive as enterprises seek new solutions. Among the most popular alternatives to VMware are Proxmox, Nutanix AHV, and Citrix Hypervisor, all of which offer differing features and configurations. Some beneficial, some not, depending on the business requirements. 

Choosing the Right Hypervisor for Your Needs

Organizations must be strategic when selecting a hypervisor. Before choosing the vendor, companies should evaluate how well the hypervisor will support their key processes. Considering the following factors about the business will help to find the right option:

  • Performance and Scalability: How quickly does the organization want to scale out workloads? Are there regular peaks in workload, or will there be linear and planned growth? Will the organization need to scale back to reduce costs? Is there a DevOps element that requires the hypervisor to have an exposed API?
  • Security: Does the workload require a high level of security? What kind of network segregation and separation is required? Does the organization want to virtualize the network components? Who will manage this layer? 
  • Compatibility and Integration: Does the organization have the in-house expertise to manage and maintain the environment, as understanding the hypervisors’ technology and orchestration layer is vital? Are there compatibility issues with the choice of hypervisor and your existing hardware/software, as seamless integration with your IT ecosystem reduces complexity and avoids costly migrations or incompatibility issues?
  • Cost: Different hypervisor vendors’ cost options should also be thoroughly researched and compared, including licensing fees and the total cost of software ownership. It is also important to assess precisely what features of the software are required for the business before selecting a hypervisor, as the cost will vary depending on these features for specific business needs. For example, some hypervisors may lack certain advanced features, resulting in a lower price point but be less efficient for the business. 
  • Support and Community: Choosing the right hypervisor software is often challenging for IT leaders. It requires a deep understanding of the technology when comparing all available options and making the most optimal decision. Therefore, strong support from the vendor and an active community can be invaluable. Organizations may also benefit from partnering with a Managed Service Provider (MSP) when choosing and optimizing their hypervisor solution.

Since Broadcom’s acquisition of VMware, the virtualization market has shifted significantly, with new players and solutions emerging. In this evolving environment, companies must stay informed about advancements in virtualization to make the best decisions for their unique needs.

Hypervisors play a crucial role in modern IT infrastructure, making it essential for businesses to carefully evaluate their options (often with a consultative company to assist) based on performance, scalability, compatibility, and cost. And as they continue to evolve, they will drive innovation within the cloud ecosystem, helping organizations meet the dynamic demands of the digital economy. By making informed decisions and leveraging the expertise of Managed Service Providers, businesses can better position themselves for success in an increasingly competitive and complex market.

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