What Broadcom’s VMware Acquisition Entails

VMware was recently acquired by Broadcom for 69 billion USD, and the deal was completed on November 22. Mergers and acquisitions (M&A) can be a turbulent time for companies, especially in the IT industry. While some M&A deals can be successful, others can lead to layoffs, office closures, and other challenges. For example, when General Electric (GE) acquired Heller Financial in 2001, it was seen as a smart move that would strengthen GE’s position in the financial services industry. However, when HP acquired Autonomy in 2011, it was a total failure, and HP was forced to write down the value of Autonomy by 8.8 billion USD just a year later.

US and Global Layoffs

When it comes to VMware’s acquisition by Broadcom, it looks like Broadcom's first big move is going to be layoffs. According to Worker Adjustment and Retraining Notification (WARN) notices filed with multiple states in the US, Broadcom will be laying off at least 2,837 employees across multiple states, including 1,267 at its Palo Alto campus in California. Rumor has it that VMware will also close some of its offices in the Asia Pacific region and cut down the workforce.

End of Perpetual License Sales

While the acquisition is expected to be a near-term win for investors, it has raised concerns among VMware customers that it could lead to higher prices, fewer customers, discontinued products, and less innovation.

According to a Forbes article, Broadcom plans to change VMware’s licensing model from a perpetual license to a subscription one. Given VMware’s reputation for high licensing costs, colloquially known as the "vTax," this change can become quite an expensive affair over time for many customers.

Concerns over the uncertainty about the future of VMware are driving some customers to evaluate alternatives for software that virtualizes data centers and enables hybrid cloud IT operations. Among those alternatives, Sangfor HCI offers an attractive option.

Broadcom Ends VMware Perpetual Licenses After Acquisition: Stop Paying the VMware "vTax" and Ride with Sangfor HCI

Sangfor HCI vs. VMware

Sangfor HCI is a hyper-converged infrastructure solution designed to be more cost-effective, secure, and easier to use than VMware virtualization, which will soon be separated from its main business. With Sangfor HCI, you can enjoy a more localized and tailored service as well as a range of features that make your virtualization easier to manage and more secure to run, everything at an optimal cost.

Sangfor addresses your VMware challenge with like-for-like components.

Description VMware Sangfor
Server virtualization vSphere aSV
Storage virtualization vSAN aSAN
Network virtualization NSX aNET
Management vCenter Sangfor Cloud Platform (SCP)
Intelligent operations vRealize SCP with SkyOps
Desktop virtualization Horizon VDI
Endpoint detection and response Carbon Black EDR aSEC

Why Sangfor HCI?

Released in 2015, Sangfor HCI is the world’s first 3rd generation hyper-converged infrastructure solution that innovatively integrates compute, storage, networking, and security in a single software stack. It serves as the perfect infrastructure building block for customers who need to consolidate 3-tier data center architecture, run business-critical applications, build business resiliency with disaster recovery, and ultimately evolve to hybrid cloud.

Widely adopted by customers of different industries across APAC and EMEA, Sangfor HCI transforms traditional tiered data center architecture with ultimate simplicity, performance, security, and resiliency. Compared with VMware, Sangfor HCI offers the following advantages:

  • More simplified architecture: Sangfor HCI adopts a unified software architecture and management platform, with the Enterprise Pro edition fully equipped with all features. Users do not need to ponder between various software editions and study which is the most suitable.
  • Higher performance: With a 3-node all-flash cluster, Sangfor HCI can reach 1 million IOPs easily. The performance is much higher than VMware vSAN with the same hardware configuration.
  • More secure: Security is in Sangfor’s gene. Sangfor HCI adopts a bottom-up and top-down security design to safeguard data, the platform, network, and VMs. Moreover, Sangfor HCI works with Sangfor security solutions such as Cyber Command to automate and streamline your security operation like never before.
  • Better cost-efficiency: No more prohibitively high software license and renewal costs. Sangfor HCI offers the best value for innovative HCI and cloud technologies at a reasonable cost.
  • More localized support: The service and support from Sangfor are customer-oriented. We believe every customer deserves the best support when an issue occurs. With Sangfor HCI, customers of all sizes can enjoy a world-class 24/7 support system to guarantee a fast and responsive service.

Take the action NOW!

Why keep paying vTax when you can have a better choice right in front of you? Sangfor provides a smooth migration experience to help you migrate your workloads non-disruptively from the VMware environment to Sangfor HCI. In addition, Sangfor HCI also offers unified management and backup for VMware vCenter, should you wish to keep your legacy VMware for non-production workloads. We are here to help you eliminate your vTax and gain more value for your business with Sangfor HCI. Contact your local Sangfor sales representative and get your deal done NOW with a time-limited promotion.


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