Rising VMware costs unsustainable?
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A practical 12-week framework to navigate the transition from vendor dependency on VMware to infrastructure independence with OpenStack based private cloud.
In our previous analysis, we explored how Broadcom’s VMware acquisition has created an urgent financial crisis for CFOs, with 48% of customers facing doubled costs and many experiencing 300-1000% price increases. While the problem is clear, the solution requires systematic execution.
The transition from volatile VMware renewals to predictable private cloud infrastructure isn’t just a technology decision—it’s a strategic financial transformation that demands careful planning, stakeholder alignment, and methodical execution. CFOs who approach this challenge with structured frameworks typically achieve 30-60% cost reductions while gaining vendor independence and operational flexibility, often seeing ROI within 6-12 months.
The Migration Challenge
Many finance leaders recognize the need to escape VMware’s pricing volatility but struggle with where to begin. The complexity of evaluating alternatives, managing migration risks, and securing stakeholder buy-in can feel overwhelming. Without a clear roadmap, organizations often delay action, continuing to pay escalating costs while their strategic position weakens.
Meanwhile, the clock is ticking. VMware contracts typically run 3-5 years, and the earlier you begin planning your exit strategy, the stronger your negotiating position becomes. Organizations that wait until renewal deadlines face compressed decision timelines and limited leverage with vendors.
A Systematic Approach to Infrastructure Independence
To address this challenge, we’ve developed a migration framework specifically designed for CFOs and finance leaders. This detailed checklist hopefully transforms the overwhelming task of VMware migration into a manageable, systematic process that you can confidently present to boards and execute with your teams.
The framework spans 12 weeks and proposes seven distinct phases:
- Phase 1: Financial Impact Assessment provides frameworks to quantify your current VMware exposure, including hidden costs and future risk projections. You’ll document spending patterns, calculate total cost of ownership, and identify the financial drivers that make migration urgent.
- Phase 2: Alternative Solution Research guides you through the complex landscape of private cloud, public cloud, and hybrid alternatives. The framework includes financial modeling guidance and decision criteria matrices to evaluate options objectively.
- Phase 3: OpenStack Private Cloud Provider Evaluation features a strategic questioning framework designed to assess vendor capabilities while uncovering key differentiators. These carefully crafted questions help you evaluate pricing transparency, service quality, and technical expertise without appearing biased toward any specific provider.
- Phase 4: Financial Analysis and Business Case Development provides frameworks for ROI calculations, risk assessments, and stakeholder presentations. You’ll learn to quantify both immediate cost savings and long-term strategic value creation.
- Phase 5: Stakeholder Alignment and Approval includes board presentation guidance and internal communication strategies to secure organizational buy-in for your migration strategy.
- Phase 6: Vendor Selection and Contract Negotiation offers negotiation frameworks and contract protection strategies to secure favorable terms while minimizing financial and operational risks.
- Phase 7: Implementation Planning provides project management frameworks and change management guidance to ensure successful execution.
Your Next Steps
The VMware cost crisis presents both challenge and opportunity. Organizations that act decisively with structured evaluation processes position themselves for immediate cost relief and long-term competitive advantage.
The key to success lies in systematic approach, thorough financial analysis, and careful vendor selection. This comprehensive checklist provides the roadmap you need to navigate the transition confidently.
Download this 17 page comprehensive framework to evaluate cloud spend and prepare to migrate off VMware.
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Note: We would like to make this framework as comprehensive and accurate as possible. If you have any suggestions for improvements or additions please feel free to send them over to marketing@openmetal.io.