The Road Ahead for Vmware Cloud Service Provider Partners

In recent news, Broadcom handed termination notice to all VMware partners globally. This news has sent shockwaves throughout the VMware partner community. Additionally, Broadcom announced that it will be transitioning VMware’s partner programs to a new “invitation-only” Broadcom Advantage Partner Program. As per VMware insiders, only partners doing annual business of $500k-1 million or higher are expected to be “invited” to the new partner program. This move has raised tremendous concerns among the roughly 4,000 VMware service provider partners who now find themselves in a lurch.

With these developments, it is crucial for VMware service provider partners to explore alternatives that offer freedom from vendor lock-in. While Nutanix is actively positioning itself as a viable option, huge concerns remain about the potential risks of moving from one vendor to another. There have been rumours of potential acquisition of Nutanix by HPE in the past, and the recent “strategic” partnership with Cisco could also be a precursor to an acquisition. While Nutanix revenues have grown steadily, its high sales & marketing costs have ensured that they have never been profitable. Hence an acquisition by any large IT vendor is imminent and that would also lead to a different path for Nutanix (read higher prices and focus on Large Enterprise business) . Hence, moving from VMware to Nutanix is akin to moving from the frying pan to the fire.

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However, there is a compelling alternative that ensures both independence from vendor lock-in and the ability to compete effectively with Hyperscalers: adopting an open-source led strategy for thier cloud business. By embracing open-source technologies, cloud service providers (CSPs) can not only eliminate vendor lock-ins but also significantly reduce operating costs, providing them with a competitive edge.

By adopting an open-source led strategy, CSPs can unlock a multitude of advantages. Firstly, they can avoid the pitfalls associated with vendor lock-in and maintain flexibility in their technology stack. This freedom allows CSPs to innovate and tailor their services to meet the unique needs of their customers.

Furthermore, open-source technologies offer cost-effective solutions that enable CSPs to compete with Hyperscalers effectively. By reducing operating costs, CSPs can provide competitive pricing to attract customers and gain a larger market share. This translates into improved business opportunities and growth potential for CSPs.

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Open-source technologies also foster collaboration and knowledge sharing within the CSP community. By embracing open-source communities, CSPs can tap into a vast pool of expertise and contribute to the development of cutting-edge solutions. This collaborative approach fosters innovation and ensures that CSPs stay ahead of the curve in an ever-evolving industry.

Apiculus offers a complete turnkey solution built entirely on open-source technologies, specifically designed for CSPs. This comprehensive solution empowers CSPs to navigate the evolving landscape with confidence and take control of their cloud business. With Apiculus, CSPs can leverage the benefits of open-source technologies like KVM and Apache Cloudstack, while delivering exceptional services to their customers.