VMware on Cloud

Earlier this year VMware's announcement of the end of availability for VMware on-premises perpetual licenses and transition into a subscription model, along with the consolidation of the VMware software portfolio to just two bundles – VMware Cloud Foundation and VMware vSphere Foundation, has caused many existing customers to re-assess how they want to consume VMware resources in the future.

Additionally, VMware startled many industry observers by announcing a 50% reduction in the subscription price of VMware Cloud Foundation (VCF). While the reduction in price may initially appear favorable, questions have emerged regarding the actual cost savings for IT buyers. As it turns out - the introduction of VMware's new bundling scheme poses challenges, particularly for customers accustomed to purchasing standalone (or “a-la-carte")  products, who now face additional subscription costs associated with the VCF bundle. Furthermore, installation and maintenance costs compound the issue, as the bundled offering requires the deployment and management of the full stack VCF using VMware SDDC Manager™.

This strategic shift prompts VMware customers, especially those reliant on older versions or currently utilize standalone products and do not have a lot of resources to navigate Broadcom’s changes, to reassess their strategies.

Amidst this transformative phase, IBM Cloud stands out as a bastion of stability and innovation, offering solutions tailored to the evolving needs of VMware customers. Introducing IBM Cloud® for VCF as a Service – a cost-efficient managed VMware solution offering designed by IBM Cloud® to facilitate seamless migration and management of VMware workloads in the cloud.

IBM Cloud® for VCF as a Service

IBM Cloud® for VCF as a Service offers IBM managed VMware solution for deploying and managing VMware virtual data centers and virtual machines seamlessly on the cloud with a robust SLA, ensuring 99.99% availability. IBM takes charge of managing the common management plane across multi-zone regions (MZR), enabling customers to delegate monitoring, patching, and maintenance tasks.

This offering presents customers with two distinct consumption options:

Single-Tenant - The single-tenant consumption option offers dedicated resources and unparalleled control over infrastructure. 

• Ideal for Production Workloads: Suited for production applications and regulated workloads requiring isolation.
• Abundant Host Profile Options: Choose from a wide range of IBM and SAP-certified host profiles, enabling precise infrastructure customization.
• Storage Flexibility: Access NFS and vSAN storage options tailored to your specific requirements.

Multitenant - The multi-tenant consumption option facilitates the rapid creation of new virtual data center environments on multitenant compute infrastructure, with deployment times of less than 20 minutes.  Customers can start small and grow as they need.

• Flexible & Granular Billing: Sold by vCPU, RAM, and storage, with flexible on-demand or reserved pricing models.
  On-demand is ideal for scenarios where customers prefer pay-per-use (e.g., development/test, QA, training environments, etc.)
   Reserved is ideal for scenarios for steady-state, production workloads where capacity needs can be forecasted.
• IBM Manages Capacity: with the multitenant option, IBM is responsible for managing infrastructure capacity, eliminating even more work from customer’s team.
• Unique to IBM: IBM stands as the sole hyperscale cloud provider offering this model, underscoring its commitment to innovation and customer-centric solutions.

Furthermore, customers have the flexibility to adopt both consumption models while receiving a single, consolidated bill each month. This streamlined approach enhances convenience and simplifies billing processes for organizations leveraging IBM Cloud® for VCF as a Service.

Why IBM Cloud® for VCF as a Service?

• IBM Managed Solution: IBM's comprehensive management and maintenance of the underlying VMware stack ensures seamless operations, allowing customers to focus on innovation and application management rather than spending resources on managing the VMware stack. Customers don’t need to worry about the VMware pricing and portfolio changes.
• Flexible Consumption: Customers can choose between single-tenant and multi-tenant models based on workload and budgetary requirements.
• Flexible Pricing Options: IBM offers flexible pricing structures, including On-Demand (Hourly), reserved (Monthly), and 1-year and 3-year committed term usage, empowering customers to optimize costs without sacrificing performance.
• Unparalleled Compute and Storage Options: Customers have the access to the most diverse range of compute and storage options tailored to unique needs.
• SAP Certified Hardware Options: Customers can benefit from SAP-certified hardware options, ensuring compatibility and performance for mission-critical workloads.

Latest Enhancements

In addition to its core offerings, IBM Cloud® for VCF as a Service continues to mature, incorporating the latest enhancements to meet increasing customer demands:

• Self-managed Backups: Self-managed Backup option is now available with Veeam.
• Private Networking: Private networking for VCF as a Service uses IBM Cloud transit gateway integration (via GRE protocol) to support private network connectivity across various IBM Cloud components and customer networks, facilitating secure communication.
• Simplified Migration via VCDA: Customers can utilize VMware Cloud Director Availability (VCDA) to migrate VMware workloads from on-premises environments or IBM Cloud® for VMware Shared virtual data center (VDC) to VCF as a Service seamlessly.
• Worldwide Availability: While currently available in Dallas, Frankfurt, and Washington DC regions, IBM plans to broaden geographic coverage to include Tokyo, Toronto, London, Madrid, and Sydney in 2024.

Use exciting financial incentives and experience IBM Cloud® for VCF as a Service:

1. Getting started offer: Start your IBM Cloud® for VCF-as-a-Service journey by using limited period promo code VCFAAS1000 and receive USD 1000 in cloud credits. 
2. New client specials: Get up to 50% off when you commit to a 1- or 3-year term contract on new VCF-as-a-Service offerings, plus an additional value of up to USD 200K in credits through 30 June 2025 when you migrate your VMware workloads to IBM Cloud®. Contact an IBM representative today.
3. Low starting prices: On-demand VCF-as-a-Service deployments begin under USD 200 per month.
4. The IBM Cloud benefit: See the potential for a 201%³ return on investment (ROI) over 3 years with reduced downtime, cost and increased efficiency after deploying to IBM Cloud based on a 2024 IBM-commissioned study by Forrester. Learn more.

Conclusion: Embracing Stability and Innovation

In the face of industry upheavals and strategic shifts, IBM Cloud for VMware Solutions stands as a steadfast partner, offering stability, innovation, and tailored solutions to navigate the evolving VMware landscape. While other hyperscale cloud providers may view VMware merely as a staging ground for eventual migration to cloud-native platforms, IBM remains committed to supporting customers' VMware workloads for the long term. As organizations chart their path forward, IBM Cloud emerges as the trusted ally, empowering businesses to thrive in an era of unprecedented digital transformation.