Company claims 1,000 percent price hike drove it from VMware to open source rival

December 2, 2024:

Companies have been discussing migrating off of VMware since Broadcom’s takeover a year ago led to higher costs and other controversial changes. Now we have an inside look at one of the larger customers that recently made the move.

According to a report from The Register today, Beeks Group, a cloud operator headquartered in the United Kingdom, has moved most of its 20,000-plus virtual machines (VMs) off VMware and to OpenNebula, an open source cloud and edge computing platform. Beeks Group sells virtual private servers and bare metal servers to financial service providers. It still has some VMware VMs, but “the majority” of its machines are currently on OpenNebula, The Register reported.

Beeks’ head of production management, Matthew Cretney, said that one of the reasons for Beeks migration was a VMware bill for “10 times the sum it previously paid for software licenses,” per The Register.

According to Beeks, OpenNebula has enabled the company to dedicate more of its 3,000 bare metal server fleet to client loads instead of to VM management, as it had to with VMware. With OpenNebula purportedly requiring less management overhead, Beeks is reporting a 200 percent increase in VM efficiency since it now has more VMs on each server.

Beeks also pointed to customers viewing VMware as non-essential and a decline in VMware support services and innovation as drivers for it migrating from VMware.

Broadcom didn’t respond to Ars Technica’s request for comment.

Broadcom loses VMware customers

Broadcom will likely continue seeing some of VMware’s older customers decrease or abandon reliance on VMware offerings. But Broadcom has emphasized the financial success it has seen (PDF) from its VMware acquisition, suggesting that it will continue with its strategy even at the risk of losing some business.

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