What is the VMware licensing issue? Introducing approaches to resolving the issue

VMware Licensing Issues Overview

Basic mechanics and changes

First, let's take a look at the basics of VMware licensing and recent changes.

Previously, VMware licenses were primarily a one-time purchase that allowed perpetual use, but the company has decided to switch to a subscription-based model. While this model reduces initial costs, there is a risk that running costs will increase over long-term use. Caution is required, as costs may exceed expectations depending on future operational structure, especially when support contracts and other factors are included. Existing users have expressed confusion, as a one-time purchase model was sometimes preferable depending on the size of the company and the purpose of implementation.

Currently, the editions and licensing models offered are integrated with SDDC and hypervisor-related products, making it easier to select based on purpose. However, the scope of functionality is becoming increasingly difficult to grasp. When renewing a license, if you do not accurately select a plan that includes the functions you need based on your company's needs, you risk incurring unnecessary costs and operational constraints.

Background to the transition to a subscription model

Traditional perpetual licenses offered the advantage of allowing customers to use the product for a long period of time by paying a one-time implementation cost. However, as subscription models become more mainstream, it is becoming necessary to consider how the burden of support renewals and feature additions will change. VMware's decision to end perpetual licenses is said to be due to faster product development cycles and increased cloud compatibility, and it is expected that flexible subscription plans will be offered in the future.

License changes and new models from 2024 onwards

It is highly likely that VMware's licensing model will be further revised from 2024 onwards, with Broadcom's strategy strongly reflected. It is essential to gather information on how the current core-based billing model will be expanded and whether a new integrated version will be released. Companies will need to prepare medium- to long-term budget plans, anticipating the risk of sudden cost increases.

Issues faced by user companies

We will look at issues that are likely to arise when changing licenses and issues that are often faced in the field.

Common problems and causes of trouble

Improper license management is one of the most common problems. It is said that human error, such as entering the wrong license key, forgetting to renew, or not understanding the contract plan, is often the cause. As a result, there have been cases where software suddenly became unusable, exposing the risk of service outages, so it is essential to develop a regular license management process.

Activation Challenges

Switching to a subscription model requires authentication-related tasks and periodic activation. For example, if the system is deployed at a location with an unstable network connection, there is a risk that the authentication server will not be accessible and the activation will expire. In such an environment, it is important to secure an alternative network and clearly define troubleshooting procedures.

Impact of core count and cluster limitations

VMware's new licensing system has changed to charging based on the number of cores rather than the number of CPU sockets. This means that licensing costs may rise more than before for servers using CPUs with a large number of cores. The larger the cluster configuration, the greater the cost impact, so it is important to factor in licensing costs when selecting server specifications.

Issues specific to small and medium-sized users

Compared to large companies, small and medium-sized users who do not have dedicated operations staff or limited budgets can find VMware licensing issues to be a major pain. They may face the double whammy of increased costs and resource shortages, especially when their subscription renewals approach. To alleviate this burden, it is necessary to accurately grasp the system scale and consider a system configuration that simplifies operations and management.

Consistency between existing environment and new license

VMware product licensing models can change with upgrades, which can cause compatibility issues with existing versions. Particularly if you hold licenses for older versions, the migration process to the new model can incur additional costs and effort. Proceeding with an upgrade without considering the timing of the migration and the contents of your support contract could result in unexpected downtime and increased costs, so careful planning is required.

Support changes and their impact

Since the acquisition of Broadcom, VMware's support system has been integrated and reorganized, and it is expected that contact points and service content will change. In some cases, support will be integrated into overseas bases, which may increase hurdles in terms of support hours and language support. To address these issues, it will be essential to collaborate with partner companies and review support plans.

Comparison with previous license fees

While license fees are only a portion of the implementation costs, they account for a significant portion of the total cost for virtualization platforms. When other investments, such as hardware installation and network equipment, are included, the total cost can increase significantly. In particular, in the cloud era, where resources can be dynamically expanded, it is important to compare costs per CPU core or cluster size.

However, when you take into account support contracts and future upgrade costs, the subscription model may end up being cheaper. It's important to make the best choice based on your company's operation period and the length of your system update cycle.

The concrete economic case for licensing changes

For example, in environments where many servers with a large number of CPU cores are installed, it has been reported that license costs have skyrocketed several times over compared to the previous level. In response to this, there have been cases where total costs have been reduced by switching to low-core CPU models and increasing the number of servers. By accurately determining the functions and processing load to be used, it is possible to optimize the edition selection and hardware configuration, thereby reducing the financial burden of licenses.

Approach to problem solving

We will introduce specific methods to resolve and mitigate license issues.
It is important to make a comprehensive decision, taking into account the medium- to long-term impact, rather than making a decision based solely on short-term cost reductions.

License Management and Troubleshooting

The key to license management is to make effective use of tools that allow for centralized management and automatic notification functions to prevent overlooking updates. It is effective for administrators to create a schedule for regularly checking license keys and carrying out update procedures as an internal rule. In the unlikely event of a problem, having a system in place that allows users to refer to procedure manuals and past response history can significantly reduce the time required for recovery.

How to check and re-enter your license key

Entering license keys incorrectly is a surprisingly common cause of problems. When re-entering a key, be sure to check the corresponding version and edition to avoid confusion with unnecessary trial versions. As a short-term alternative, reusing old keys or demo keys may lead to future problems, so it is best to thoroughly manage official keys at an organizational level rather than on an individual basis.

Preparing for VMware support

Clearly organizing inquiries and preparing supporting data such as logs and screen captures will ensure smooth communication at the support desk. Since support responses have changed due to the integration of bases following the Broadcom acquisition, it is advisable to understand in advance the time and contact points for contact. Deciding on escalation routes and procedures for contacting partner companies will also contribute to the rapid resolution of problems.

Options for reducing license costs

You may be able to reduce licensing costs by reviewing the number of virtual servers and CPU core allocation and reducing unnecessary resources. Optimizing sizing may also help you avoid scaling up your hardware, leading to overall implementation cost savings. It's important to regularly survey your environment and identify over-specified and underutilized resources.

Considering migration to other platforms

In some cases, licensing costs can be reduced by choosing a hypervisor other than VMware, such as Red Hat OpenShift, Hyper-V, KVM, or Nutanix AHV. However, migration also involves challenges such as rebuilding existing environments and acquiring operational skills, so a comprehensive cost comparison and risk assessment are necessary. In addition, the support system and breadth of the ecosystem after migration are also important factors to consider when actually running the system.

Optimizing virtual environment resources

By properly adjusting CPU, memory, and storage allocations, you can use your virtualization environment more efficiently. Excessive resource allocation not only increases licensing costs, but can also lead to contention with other workloads and result in performance degradation. Regular monitoring and fine-tuning resource allocation as needed can help you balance operational costs and performance.

Specific measures for adapting to the new model

It is expected that subscription-based licensing will become mainstream in earnest in the future, not just for VMware, so it is important to start preparing for the transition to a new model at an early stage. Considering what configuration you should upgrade to for optimal performance through contract renewal cycles and assessments will help reduce future rework. It is a good idea to take full advantage of the benefits of subscription-based licensing at a time that aligns with your company's IT strategy.

Choosing the Right Edition

VMware editions are divided into detailed categories by function, and license costs vary greatly depending on the number of virtual machines and whether or not management functions are included. Carefully examine which functions your company truly needs and choose an edition that allows for a slight margin of error to minimize waste. Additional licenses may be required after operations begin, so it's important to make a comprehensive decision in terms of scalability as well.

Support Plans and Partner Utilization

If it's difficult to complete license management and troubleshooting on your own, signing a contract with a suitable partner company is an effective option. When choosing a partner, choose one that not only handles inquiries and provides technical support, but also excels in proposing optimal editions and operational plans. To mitigate increasingly complex VMware licensing issues, it's a good idea to actively consider utilizing external resources with specialized knowledge and experience.

How to deal with VMware licensing issues with an eye to the future

We will consider licensing strategies and hypervisor selection based on market trends from 2024 onwards.

The environment surrounding VMware has been changing rapidly since the acquisition of Broadcom, and the licensing model is also being questioned. Cloud-first companies and large-scale users are transitioning to new contract formats while seeking benefits in terms of both cost and functionality. Smaller users face higher hurdles to adapting to change, so they need to consider measures early on with an eye to their company's future.

Options other than VMware are becoming more mature, making it possible to make comprehensive comparisons that include operational costs and support systems. With the rise of cloud-native technology and the spread of container platforms, designs that do not necessarily rely on hypervisor functionality are also being considered. When incorporating these new technologies, it is necessary to consider not only VMware licenses but also structural reforms to the entire IT system.

Regular evaluation and review are essential to properly manage costs while ensuring future expansion and scalability. With the shift to new technologies such as cloud and containerization, it is important to prioritize not only within your VMware licensing strategy, but also within your overall IT strategy.

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The options are "getting away from VMware" and "staying with VMware"

While migrating to Red Hat OpenShift, Hyper-V, KVM, Nutanix AHV, etc. may reduce license costs, abandoning an existing VMware environment requires careful planning. The impact on multiple fronts, including operational management tools, administrator skill sets, and business application operation verification, must be considered. The decision of whether to maintain and optimize the current VMware environment or to make the bold decision to "move away from VMware" is a topic that will have a significant impact on a company's long-term IT strategy.

Strategic response measures in response to market changes

The spread of cloud services and container technology is changing the very nature of virtualization. More and more companies are choosing designs based on hybrid cloud and multi-cloud, and VMware is expanding its service integration and new licensing plans to keep up with this trend. It is important to regularly monitor market changes and reconsider your licensing strategy and product selection to ensure your company can operate its IT infrastructure flexibly.

summary

Depending on the size of your company and your IT strategy, migrating from VMware to another platform is certainly an option. However, choosing the right edition and establishing license management methods is also an attractive option, as it allows you to continue to take advantage of VMware's significant strengths: its extensive feature set and support assets. As the importance of virtualization technology continues to grow in society, it's essential to identify best practices that meet your company's requirements.

Choosing the optimal licensing format and establishing an operational management system while keeping an eye on future market and technology trends will lead to a company's competitiveness. It is necessary to build a sustainable IT infrastructure by evaluating the environment from a comprehensive perspective, including not only license costs but also support systems and security aspects.

Saison Technology's data integration tool that "connects" complex system environments

The person who wrote the article

Affiliation: Marketing Department

T.K

After joining Saison Technology, he worked as a development and operations engineer for EDI services, and then gained experience in business development for new services. Currently, as a marketing manager, he explores how our products can solve customer problems and disseminates information.
(Affiliations are as of the time of publication)

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