[HN Gopher] VMware transition to subscription, end of sale of pe...
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       VMware transition to subscription, end of sale of perpetual
       licenses
        
       Author : transpute
       Score  : 179 points
       Date   : 2023-12-12 17:25 UTC (5 hours ago)
        
 (HTM) web link (news.vmware.com)
 (TXT) w3m dump (news.vmware.com)
        
       | bombcar wrote:
       | Has the free ESXi survived the turmoil?
        
         | coldbrewed wrote:
         | It's probably not the first thing on the chopping block as
         | there's plenty of revenue to be squeezed from vSphere; over the
         | next 2-5 years I don't see a world where the free ESXi will be
         | left unmonetized/uncrippled.
        
         | whalesalad wrote:
         | Free esxi is pretty crippled at this point, esp for high core
         | counts. Proxmox is the way to go!
        
           | fredski42 wrote:
           | What about Nutanix?
        
             | SteveNuts wrote:
             | Nutanix has a Community Edition which works well, but has
             | some fairly strict requirements due to the overhead of
             | their controller VMs and such
             | 
             | https://www.nutanix.com/products/community-edition
        
             | whalesalad wrote:
             | I would not choose it for a greenfield project unless I
             | knew that they had a particular module for more enterprise-
             | grade stuff like doing hardcore/proprietary interconnects.
        
           | waynesonfire wrote:
           | What about xcp-ng?
        
             | whalesalad wrote:
             | I intensely disliked xcp-ng when I tried it a few years
             | back. It's more of a move fast and break things indie type
             | of project. Proxmox feels more stable and trustworthy.
        
         | meepmorp wrote:
         | > Here is a list of products impacted by the new licensing
         | policy:
         | 
         | VMware Cloud Foundation
         | 
         | VMware vSphere
         | 
         | VMware vSAN
         | 
         | VMware NSX
         | 
         | VMware HCX
         | 
         | VMware Site Recovery Manager
         | 
         | VMware vCloud Suite
         | 
         | VMware Aria Suite
         | 
         | VMware Aria Universal
         | 
         | VMware Aria Automation
         | 
         | VMware Aria Operations
         | 
         | VMware Aria Operations for Logs
         | 
         | VMware Aria Operations for Networks
        
       | delfinom wrote:
       | > VMware has been on a journey to simplify its portfolio and
       | transition from a perpetual to a subscription model to better
       | serve customers with continuous innovation, faster time to value,
       | and predictable investments.
       | 
       | Yea, a one-time cost wasn't predictable enough, instead a
       | subscription number that will be changed each year on a whim is
       | predictable.
       | 
       | Got it.
        
         | thedougd wrote:
         | If you're running VMware and CA (mainframe), Broadcom owns you
         | at this point.
        
         | toyg wrote:
         | Doublespeak at its finest - unless one is to interpret
         | "predictable investments" as investments _by Broadcom_ , which
         | will indeed become easier once all customers are turned into
         | digital serfs-- sorry, subscribers.
        
       | coldbrewed wrote:
       | My heart goes out to all of the institutions that are about to
       | get hammered by this change, but I would by lying if I said I
       | wasn't excited about a potential increase in investment in open
       | source cloud virtualization infrastructure. Proxmox seems poised
       | to benefit from this; is Openstack in a situation where it could
       | be reasonably rolled out as a substitute for vSphere without
       | requiring significant staff increases?
        
         | thedougd wrote:
         | OpenStack provides a different axis of offering than vCenter.
         | It's more aligned for multi-tenant, API driven use cases, ala
         | cloud. Of course, you could open access to only the
         | virtualization team, but they'd likely find the console
         | experience frustrating. VMware even has an OpenStack product
         | that is built on vSphere virtualization and NSX-T software
         | defined networking.
         | 
         | The challenge is that companies architect their services and
         | applications around what they have, and they may be very
         | operationally dependent on specific features of vCenter and how
         | they've configured those features.
        
           | NBJack wrote:
           | Yeah, OpenStack is very much not a great competitor. If you
           | can afford an expert to set it up for you, great! Otherwise,
           | prepare to invest in other ways. I'm not going to say VMware
           | has a super intuitive system, but I've gotten surprisingly
           | far at times without a lot of deep knowledge. Well, until the
           | *nix-like kernel in the hypervisor misbehaves....
        
             | znpy wrote:
             | If you have any significant workload on vmware you likely
             | already have an expert on payroll.
        
             | Klasiaster wrote:
             | The setup is not too complicated with something like
             | https://opendev.org/openstack/devstack
        
               | prometheanfire wrote:
               | devstack is for dev work, expect nothing to persist.
               | 
               | If you want a deployment choose something like openstack-
               | ansible.
        
             | throw0101c wrote:
             | > _Yeah, OpenStack is very much not a great competitor. If
             | you can afford an expert to set it up for you, great!_
             | 
             | If you know (say) Ubuntu and Ansible, then there's pretty
             | good automation with _openstack-ansible_ and _kolla-
             | ansible_. There are a number of moving parts, but an
             | intermediate-level Linux sysadmin can get things going
             | without too much difficulty. There are vendor-provided
             | solutions (e.g., from RH) as well if you don 't want to do
             | a fully DIY, or want commercial support.
             | 
             | * https://www.openstack.org/marketplace/distros/
             | 
             | At a previous job we had a team of 4-5, and 1.5 FTEs split
             | their time between our HPC cluster and our OpenStack
             | cluster (20+ hypervisors, ~10 Ceph servers; >350
             | VMs/instances).
        
           | mitjam wrote:
           | There is also Rancher Harvester (https://harvesterhci.io/)
           | which I think is a breadth of fresh air compared to VMware
           | and OpenStack and then there is the Windows Server based
           | Azure Stack HCI, too. In my experience, VMware's biggest moat
           | is the vast support from software vendors. It basically is
           | the default supported platform for almost every business
           | application. This comes with well known best practices, many
           | experienced admins, out of the box solutions from hardware
           | vendors and highly standardized managed services. Most apps
           | leave VMware for the cloud or Kubernetes but not another on-
           | prem VM platform.
        
             | hhh wrote:
             | Harvester has been great for me, except when I wanted to
             | start using a real SAN with it. It's KubeVirt under the
             | hood if I recall correctly, which is also a great project
             | to check out.
        
             | nolist_policy wrote:
             | Or go vendor independent with pacemaker + drbd + libvirt.
             | For that stack you can get support from SUSE, Redhat and
             | Linbit and maybe even Ubuntu. Or just go with Debian if you
             | don't need support.
        
           | throw0101c wrote:
           | > _VMware even has an OpenStack product that is built on
           | vSphere virtualization and NSX-T software defined
           | networking._
           | 
           | * https://www.vmware.com/ca/topics/glossary/content/openstack
           | -...
           | 
           | * https://www.vmware.com/ca/products/openstack.html
        
             | thedougd wrote:
             | It's a pretty good product, IME, especially if you're using
             | it with NSX-T.
        
           | KaiserPro wrote:
           | unless something has changed recently, openstack is a horror
           | to setup and administer.
           | 
           | the point of vmware is that is fairly trivial to go from a
           | single server with some VMs, to a massive cluster with live
           | zero-downtime migrations. (and have funky storage, get
           | working snapshots and backups.)
           | 
           | Sure openstack can do that. but its non trivial to setup.
        
             | I_Am_Nous wrote:
             | We used Openstack for a while, but overall it was a
             | nightmare. I'm sure it's better than it used to be, but it
             | is not simple to spin up or maintain, and it's not designed
             | to baby VMs -- if one acts up they expect you to delete and
             | recreate it, which works OK for microservices but not for
             | huge Windows terminal servers.
        
         | natbennett wrote:
         | Has OpenStack as an organization solved the problem where
         | there's not really such a thing as OpenStack? In terms of e.g.
         | what APIs will be available and so on?
         | 
         | That's basically what stopped it back in '14 or so. It was too
         | hard to provide software that could run on an OpenStack because
         | it was such a choose-your-own-adventure.
        
         | pierrelf wrote:
         | I was at the Apache Cloudstack conference just a few weeks ago
         | and it seems most of the integrators are pivoting to moving
         | VMware customers to KVM + CloudStack, and have even upstreamed
         | an auto conversion tool.
         | 
         | https://cloudstack.apache.org/
        
           | jabl wrote:
           | People at a cloudstack conference think cloudstack is great
           | and want their customers to use it?
           | 
           | What's next, a survey of people attending the annual
           | dentistry conference shows that they think dental health is
           | important?
        
           | rwmj wrote:
           | Are they using virt-v2v for conversions from VMware to KVM or
           | something else?
        
         | csydas wrote:
         | While I am excited to see that quite a decent number of past
         | clients I've had are considering proxmox and other
         | virtualization stacks, I am not confident there will be a fast
         | answer for this new change in the virtualization realm.
         | 
         | Large and Enterprise companies won't really be bothered by the
         | change except the price, and unless other platforms include all
         | the "Enterprise Check-boxes" they think they want, I'm not sure
         | how fast adoption will be if at all for stacks like Proxmox.
         | 
         | I am not defending the business model or the tech offerings of
         | Vmware, Microsoft, etc -- far from it. They're extremely
         | bloated, buggy, and unless you happen to be one of VMware or
         | Microsoft's most expensive customers, the support might as well
         | just be a sin tax. Even for the "biggest" clients, they were
         | not able to get Vmware or Microsoft to budge on some pretty
         | obvious and complete blocker bugs that would drop production
         | environments entirely.
         | 
         | Enterprise is weird -- I would be extremely happy if not a bit
         | exhausted supporting a large OSS virtualization infrastructure
         | for clients, but I just do not see it happening without a lot
         | of "carrots" for such companies from the virtualization vendor.
         | Enterprise business is basically about shifting responsibility
         | and liability for your tech-stack to someone else -- yes, it
         | requires strong tech skills to use these tech-stacks, but the
         | more maintenance/liability that can be shifted to the vendor,
         | the more preferable it is for most companies.
         | 
         | I don't know what the businesses will choose -- I'm hopeful
         | medium and smaller businesses will shift to more open solutions
         | and from this business, the open solutions will be able to grow
         | and become more attractive choices for enterprise, I'm just not
         | sure that such solutions will avoid the tech industry's
         | obsession with subscription licensing and feature bloat to
         | check boxes.
        
           | depereo wrote:
           | With all the 'investment' in ISO27001:* validation of the
           | existing infrastructure choices and the like, I'd be
           | astonished if any move in a large company was able to happen
           | within five years.
           | 
           | From what I've seen none of them have taken this issue
           | seriously, either, and won't until they get squeezed hard
           | enough, at which point they'll have to... spend five years
           | trying to move!
        
         | eddyg wrote:
         | Don't forget about the open-source XCP-ng[1] to which you can
         | add Xen Orchestra (which is like vCenter; a key reason people
         | use ESXi) which has a flat-rate (no socket, host or VM limits)
         | $2600/year _Enterprise_ license. And XCP-ng even supports
         | migrating from VMware[3].
         | 
         | [1] https://xcp-ng.org [2] https://xen-orchestra.com/#!/xo-
         | features/webinterface [3] https://xcp-
         | ng.org/blog/2022/10/19/migrate-from-vmware-to-xc... and
         | https://xcp-ng.org/blog/2022/04/13/how-bedrock-streaming-mig...
        
         | bushbaba wrote:
         | Suspect it'll be the biggest gift to the public cloud
         | providers. Firms who use VMWare rarely want to self-manage
         | their virtualization tech.
        
         | ThinkBeat wrote:
         | proxmox is presently not an alternative to the VMWare stack.
         | Not even close. Converting from the VMWare stack proxmox would
         | be a giant shitshow.
         | 
         | I have been a paying user of WMware personally since the
         | beginning and I have worked on their enterprise stack for
         | several years. With the changes being made I cant see myself
         | wanting to spend any personal money on it I and I would not
         | recommend someone to start fresh with it, but for a lot of
         | enterprises, they will, short term, have little choice than to
         | pay the fees.
         | 
         | I have no idea about the state of Microsoft HyperV. The little
         | I have worked with it, and that was quite a few years ago now
         | it seemed severely lacking in the tools department.
         | 
         | Oracle owns VirtualBox, and even if they started to build it
         | out (or have they?) going to Oracle to avoid high fees is not
         | going to be a good idea.
        
           | fuzzylightbulb wrote:
           | Microsoft is ending mainstream support of Hyper-V Server 2019
           | on January 9, 2024 and extended support will end on January
           | 9, 2029. Hyper-V Server 2019 will be the last version of this
           | product and Microsoft is encouraging customers to transition
           | to Azure Stack HCI.
        
           | tlamponi wrote:
           | We have many happy customers successfully converting from
           | VMWare to Proxmox VE just fine, what's missimg for your
           | usecase?
        
       | kodama-lens wrote:
       | This might be a serious issue for my current client since their
       | entire stack is build on VMware and I was helping to build a
       | massive project that would lift their current setup to a full
       | self service private cloud setup. They were already worried by he
       | acquisition but this... With the current budget cuts puts the
       | entire project at risk.
       | 
       | I would feel bad for them but today I was informed by my PO that
       | the budget cuts also affect my contract so it will not be
       | extended. The only bitter taste is that the project was meant to
       | improve the infrastructure for citizen services. Kind of have a
       | bad feeling for how this will turn out
        
       | freedomben wrote:
       | I'm used to corporate marketing speak, but damn this is
       | impresively corporate orwellian. This is real copy/paste from
       | TFA, not some parody that I wrote.
       | 
       | > Q: Why is this good for partners?
       | 
       | > A: The industry has already widely embraced subscription and
       | SaaS, and many partners in our ecosystem have already developed
       | success practices in this area. Subscription and SaaS models
       | provide an opportunity for partners to engage more strategically
       | with customers and deliver higher-value services that drive
       | customer success. It also helps accelerate their own transition
       | to a business model focused on annual recurring revenue.
        
         | rychco wrote:
         | This is so hilariously out of touch that I would have believed
         | it was satire without context. This is viral copy-paste quality
         | material.
        
           | geodel wrote:
           | Sorry, I don't think it is out of touch? I see this kind of
           | thing all the time everywhere.
        
         | geodel wrote:
         | I mean it does look like a shifter of paradigms that businesses
         | are demanding. What's not to like here.
        
           | toyg wrote:
           | Gotta leverage those competitive advantages to enable
           | holistic synergies, yo.
        
         | xuhu wrote:
         | "-- Written in my leased BMW Series 7 with subscription warmed
         | seats. These things don't pay for themselves you know."
        
       | lloydatkinson wrote:
       | The enshitification continues
        
       | natbennett wrote:
       | You know, I always used to think that e.g. Amazon talking about
       | "customer obsession" was stupid. Of course a business is focused
       | on its customers? That's where the money comes from?
       | 
       | Then I got to see the conversation about subscriptions at VMware.
       | The storyline was always "wouldn't it be great for us if we
       | switched to subscriptions? Look how good all the math gets!" The
       | customer barely appeared as a background character.
       | 
       | Especially entertaining when it came to things like PWS. After
       | the acquisition VMware shut it down -- because it didn't have any
       | real customers -- and then in the push to subscriptions the new
       | folks in charge of TAS were like "Great idea everyone! What if we
       | provided Cloud Foundry... as a Service!" The engineers who had
       | been around long enough to see the whole cycle tried to explain
       | but I don't think it got through.
        
         | ljm wrote:
         | I read The Messy Middle some time ago, which mostly documents
         | the process of Behance's CEO joining Adobe post-acquisition and
         | then switching their entire suite of products over to their new
         | subscription-based model, Creative Cloud, and sunsetting their
         | perpetual license model.
         | 
         | This is described in the book as a fantastic achievement for
         | Adobe but one that was quite difficult to get off the ground.
         | On reflection I do not share that assessment and while it may
         | have been personally successful for the CEO/author of the book,
         | it was done entirely at the expense of the customer and their
         | experience. I would in fact consider renting software that
         | takes up storage on your own hardware to be anti-consumer.
        
         | al_borland wrote:
         | At most companies it is an uphill battle to advocate on behalf
         | of the customer. It's really important that those values start
         | at the top, and get support at all levels of management.
         | 
         | The best story I heard on this was from Zappos and Tony Hsieh.
         | Zappos was famously customer focused (which probably played a
         | big roll in Amazon acquiring them). The story goes that after a
         | night of drinking they had someone call Zappos to find pizza
         | for them, and Zappos customers services helped them out (not
         | knowing the CEO was there listening).
         | 
         | https://www.youtube.com/watch?v=jJ5k_Byd9Fs&t=2296
        
         | ARandomerDude wrote:
         | Amazon Prime is a subscription though. It seems Amazon and
         | VMware are in many ways similar in that regard.
        
       | pappeyrome wrote:
       | Broadcom will feast on revenue from Govt IT departments. Well
       | done
       | 
       | /sarcasm
        
       | nunez wrote:
       | To be clear, Broadcom is just speeding up something that VMware
       | has been trying to do for a while.
        
       | bigstrat2003 wrote:
       | Ah, I see that Broadcom is working on speedrunning the "lose all
       | your customers" game. Not what I would do if I dropped eye
       | watering sums of money to purchase those customers, but you do
       | you, Broadcom.
        
         | peeters wrote:
         | This has always been Broadcom's MO. They buy a company,
         | determine which of that company's 150/250/500 customers overlap
         | with their core 500 customers, bundle the acquired product(s)
         | with everything they already sell those customers, and then
         | jack up the price on the entire portfolio. Anybody not on the
         | refined core customer list either gets explicitly cut, or is
         | spun off into a second-tier digital sales program where they
         | are ignored until they leave on their own.
        
           | axus wrote:
           | I was periodically buying a software product they acquired,
           | very small volumes. The sales process and support did improve
           | a bit. It was a low bar, though.
        
       | throwaway5959 wrote:
       | This might be a shorter timeline to destroy a company than a
       | Musk.
        
       | schaefer wrote:
       | Oh, you don't sell a product?
       | 
       | I guess I won't but it then.
       | 
       | Thanks.
        
       | mig39 wrote:
       | Classic enshittification.
        
       | yedava wrote:
       | I wonder what will happen to the Spring ecosystem. Will Broadcom
       | close it off and try to monetize it?
        
       | LadyCailin wrote:
       | This "everything is a subscription" thing just cannot be
       | sustainable. I mean, sure, some companies with a huge moat can
       | probably sustain this well enough, but eventually consumers and
       | businesses will simply run out of money, and then can't buy
       | anything anymore. Not to mention that it means that no one can
       | make investments anymore, and can only piss away money every
       | month. I have no clue how to stop this from happening though
       | either from a regulatory perspective or a free market
       | perspective.
        
       | fifteen1506 wrote:
       | I don't know how managers aren't paying for RedHat products
       | excitedly. It's the only business which competes with itself and
       | where an acquisition by a private equity firm will, by the
       | application of the typical strategies, destroy it's own customer
       | base in days.
       | 
       | Not like open-source won, more like proprietary eats itself.
        
       | el-dude-arino wrote:
       | We're entering a post-growth economy in the near future, so the
       | only way for companies to have reliable revenue streams is to
       | create subscription services. Get ready because y'all are about
       | to be rundled to death.
        
         | BriggyDwiggs42 wrote:
         | Yeah, just pirate and crack everything at some point.
        
       | HHad3 wrote:
       | This is unfortunate. The writing was on the wall already with
       | vSphere+, but I can't really commit to a subscription for VM
       | infrastructure. Broadcom would be able to hold the whole company
       | hostage with price increases.
       | 
       | I'm not sure yet where we'll end up, but the small cluster of 8
       | machines of ours will not run vSphere in 2025.
        
         | xbar wrote:
         | Their pricing model seems designed to make you leave. I wish
         | you well.
        
       | schlauerfox wrote:
       | I'm not sure I have clarity on this, but if your service and
       | support agreement expires, do perpetual licenses get locked out
       | of esxi patching? It's unclear based on what they're saying.
       | Update VIBs were always available even to foundation and
       | essentials, but companies like HPE paywall locked bios updates
       | and certain support installer a few years ago and even legally
       | went after people for distributing them. We usually use use the
       | commands from https://esxi-patches.v-front.de/ to run updates. We
       | use vmware 6.7 and 7 extensively for small business along with
       | Veeam to make recovery and snapshotting better.
        
       | fxtentacle wrote:
       | Soon we will have reached the point where software piracy is the
       | only way not to build your company on digital quicksand. I
       | sincerely hope we never get there because it would ruin the
       | commercial software market, which did produce amazing tools in
       | the past. But by now, it certainly looks like major participants
       | are boosting their last remaining quarters (before the company
       | implodes) by scorching the earth they walk on. First Unity, now
       | VMWare. I really have no idea why a CEO might think it to be a
       | good long-term strategy to throw the majority of your past
       | customers under a bus.
        
         | happytiger wrote:
         | It's could be a great day for Open Source software.
         | 
         | Maybe we need to adapt Open Source so that cloud providers who
         | use it have to pay for continued development instead of just
         | using it for free or putting a control panel on top of
         | something and calling it their own product, but that's the
         | solution we came up with the first time proprietary software
         | vendors started trying to lock the universe down into perpetual
         | upgrade nonsense.
         | 
         | Perhaps it's time to revisit Open Source licenses with a fresh,
         | sharp pencil and an eye towards making all these systems
         | compete with cooperative, collective-interest development
         | again. We definitely need to find models that don't cut the
         | investment valuation so hard, as that's been a huge problem for
         | the Open Source companies.
         | 
         | Down markets and cost saving periods are when Open Source has
         | seen massive adoption, as companies look to save money...
         | 
         | Maybe I'm wrong but it's been on my mind a lot lately.
        
       | living_room_pc wrote:
       | dead man walking!
       | 
       | 1. switch to subscription model <- we are here 2. jack prices to
       | maximize profit among the proportion of customer that can pay
       | higher prices. 3. smaller startups migrate to other cheaper tools
       | 4. cheaper tools slowly become mainstream 5. vmware is irrelevant
       | and dead. ~ 7-10 years, maybe less.
       | 
       | The problem with this strategy here, is that unlike Photoshop
       | (sorry gimp) there _is_ alternatives.
        
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