Navigating the New Era in Virtualization: A Guide for Integrators

News Nov 27, 2023

In recent times, the virtualization domain, once a predictable and stable field dominated by giants like VMware, Citrix, and Microsoft, has undergone a seismic shift. This transformation, as is typical in the technology sector, has been rapid and profound, reshaping the industry's landscape.

Olivier, our CEO, has penned a comprehensive article detailing these changes. It's a must-read for anyone looking to stay informed about the current state of the virtualization industry.

The new virtualization landscape
In light of Broadcom’s $61 billion acquisition of VMware and the shifting dynamics in the virtualization industry, Vates stands out with its innovative ‘Bundles’, offering a unique, cost-effective solution in an era marked by technological consolidation and evolving cloud trends.

The shifting landscape in virtualization affects not only the end users of these solutions, but also has wide-ranging implications for solution providers, Managed Service Providers (MSPs), and integrators.

The Shift in Customer Loyalty

According to Forrester, 20% of VMware's clientele is considering a switch in 2024 due to the acquisition of VMware by Broadcom that "casts a shadow on an already beleaguered VMware customer base".

A staggering statistics that indicates that one in five customers are exploring alternatives. As a MSP or an integrator, that also indicates a significant portion of your customer base and likewise that of your competitors, is facing challenges and eagerly awaiting for alternative viable solutions when it comes to their virtualization infrastructure.

Offering an alternative to VMware isn't merely about retaining existing contracts. It's a golden opportunity for the most adaptable integrators to advance and present a solution that their competitors haven't—likely due to their slow adaptation to the changing virtualization market.

Evaluating the option

The VMware acquisition has understandably been a topic of concern for numerous people in the tech community. However, this development is just one facet of the broader, dynamic changes reshaping the market. As an integrator, navigating these shifts requires a strategic approach and a clear understanding of the available options.

The Cloud Push from Major Players

In recent years, industry giants like Microsoft, RedHat, and Citrix have pivoted significantly, championing cloud solutions over traditional models. This shift is evident in their strategies - phasing out virtualization solutions, hiking prices for on-premise offerings, and reallocating innovation investments towards cloud-centric developments. As these trends accelerate, integrators must reassess their alignments and strategies to stay relevant on the long run.

The seemingly straightforward strategy of transitioning VMware clients to another major player like Microsoft Hyper-V warrants a closer examination. While this approach might appear beneficial at first glance, it could ultimately prove counterproductive for both integrators and their clients. A significant concern lies in inadvertently funneling customers into ecosystems controlled by these giants, leading to locked-in cloud environments. Integrators need to recognize that they may not be a central consideration in the long-term strategies of these major corporations.

The KVM Paradigm: Flexibility with challenges

KVM stands out as a robust and widely acclaimed Open Source hypervisor. However, it's crucial to note that KVM itself doesn't constitute a full virtualization platform—it's more akin to a car's engine than the complete vehicle.

KVM's flexibility and customization capabilities enable organizations to construct their virtualization stack, tailor-made for their requirements. Yet, this flexibility is accompanied by significant challenges, particularly for integrators aiming to scale solutions in various customers infrastructures.

The KVM ecosystem's fragmentation demands careful component selection and assembly, akin to constructing a complex IKEA set. This customization, while beneficial, introduces risks in support and stability at scale. For integrators, this also means coordinating with various companies, each supplying crucial stack components, and ensuring efficient, proactive support for end-users.

Vates VMS: Marrying Open Source with Turnkey Efficiency

With over a decade of expertise in the virtualization industry, Vates presents a robust open virtualization platform. We are Open Source champions and advocates since our foundation but our approach also values the accessibility of the platform.

we emphasize superior support services that create a virtuous circle where dependable and seamless infrastructures minimize the number of support tickets. This virtuous circle is freeing up resources to further enhance solution capabilities and deliver even more performance and features to users.

Vates is a key innovative player in the virtualization industry. Our solution has been featured in the Gartner Market virtualization guide since 2021 among players such as Amazon AWS or Google Cloud. Our stack combines the benefits of open-source with a turnkey solution - and it includes a dedicated partner program with swift deployment and high potential margin.

Vates’ Continued Recognition in Gartner’s Server Virtualization Guide
We’re thrilled to announce, just as we did last year, that Vates has once again been recognized in the Gartner Market Guide for Server Virtualization.

Forward-Thinking Strategies for Integrators

In conclusion, the evolving virtualization landscape presents both challenges and opportunities. By understanding these changes and strategically aligning with innovative solutions, integrators can position themselves at the forefront of this dynamic industry.

As the virtualization landscape continues to evolve, it's important to recognize the growing sentiment among many users who are disillusioned with cloud solutions. Despite the big players' push towards cloud offerings, concerns over costs, vendor lock-in, and security issues are leading a significant number back to on-premise solutions.

Furthermore, the demand for edge infrastructure is projected to significantly rise, hitting an initial peak within the next two to five years, according to Gartner's analysis. This trend highlights an urgent need for solutions that are not only efficient and ready for immediate deployment but also characterized by their low resource consumption in on-premise settings. Such innovations are vital in adapting to the dynamic realm of edge computing, which is rapidly expanding across various industries. This shift presents a substantial opportunity for integrators to capitalize on the burgeoning market and meet the evolving needs of their clients.

The market for on-premise infrastructure remains vast, offering fertile ground for integrators to provide robust, cost-effective solutions. By understanding these market shifts integrators can seize the opportunity to cater to this significant and underserved market segment. In this dynamic industry, staying ahead means not only adapting to changes but also anticipating and meeting the diverse needs of customers who are reevaluating their virtualization strategies.

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Marc-André Pezin

CMO at Vates since 2017, I have been at the forefront of shaping and advancing the communication strategies and business development initiatives for Vates Virtualization Management Stack.