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We have been officially announced as a VMware Cloud Service Provider partner at the Premier Partner level in the Broadcom Advantage Partner Program. As a member of the program, we will be supporting both existing and new customers through this industry shift. In this insight, we offer more information about Broadcom’s acquisition of VMware, the consequent licencing changes, and what this means for you.
VMware, developers of the industry leading virtualization software which powers our Enterprise and Private Cloud platforms, has recently been acquired by Broadcom, prompting changes to their partnership and licensing processes. The primary change that is affecting hosting providers is to the invitation-only &#8216;Broadcom Advantage Partner Program (APP)&#8217;. Broadcom has reviewed its partnerships with all providers, transitioning to a partner program where only leading providers will be able to offer VMware products. Broadcom has stated that this change is to deliver a simplified service for users.
As a VMware Cloud Service Provider (VCSP) partner at the Premier level, we are still able to utilize VMware’s top enterprise-grade virtualization software to power our platforms. 
This transition is bringing significant changes across the industry, with many businesses looking for clarification on how this will affect their infrastructure. It is important to understand firstly how and why VMware is used, and the background behind the acquisition. 
<h2>Why VMware is used</h2>
VMware is known for its hypervisor-based virtualization software, used to power cloud infrastructure. Virtualization allows for an environment to use Virtual Machines (VMs), greatly extending the capability of a physical server, without significantly increasing costs. VMs reduce the amount of equipment needed, better utilizing resources. They remove the need to purchase additional hardware, reduce the space needed to house physical servers, and save the energy costs of running additional servers. VMs also allow for flexibility and scalability &#8211; if your infrastructure requirements change, you can rapidly scale up your platforms, without additional hardware. VMware additionally operates on Zero Trust architecture, with the highest level of security, protecting your sites and applications. 
We use VMware to power our Enterprise and Private Cloud platforms.
Learn more about<a href="https://www.hyve.com/en-us/vmware-hosting/"> VMware Hosting</a>
<h2>What is the background of Broadcom’s acquisition of VMware?</h2>
Broadcom acquired VMware in November 2023, with the aim of integrating their hardware business with VMware’s software. In their <a href="https://www.broadcom.com/blog/broadcom-announces-successful-acquisition-of-vmware">announcement of the acquisition</a>, Broadcom’s President and Chief Executive Officer, Hock Tan, stated ‘Our goal is to help customers optimize their private, hybrid and multi-cloud environments, allowing them to run applications and services anywhere.’
Shortly after the acquisition was finalized, Broadcom announced changes to VMware licensing and partnerships. This included simplifying their portfolio by transitioning to only offering subscription licences, rather than perpetual licences, and restructuring the Broadcom Advantage Partner Program. 
<h2>What do the VMware by Broadcom changes mean for you?</h2>
<h3>Licencing and infrastructure</h3>
Going forward, only members of the Broadcom APP, including Hyve, will be able to directly offer VMware licences. Providers which are not part of the APP will need to either acquire licences through a third-party ‘middle-man’ who is part of the program, which will mean higher costs for the provider and their customers, or use an alternative hypervisor software. If your provider continues to use VMware through a third party provider, your provider will not have a direct link to VMware support. 
If your provider decides to stop using VMware and use an alternative, this may involve refactoring the code of your infrastructure to be compatible, either in-house or through your provider. The impact of this will depend on your provider’s migration strategy and levels of management. You should receive contact directly from your provider on their strategy and its impact on your platforms. Alternatively you can migrate to a recognized VMware provider, meaning you can continue to use the VMware platform.
Learn more about <a href="https://www.hyve.com/en-us/vmware-hosting/vmware-licensing/">VMware licensing</a>
<h3>Pricing structure</h3>
VMware by Broadcom has updated its pricing structure for licensing its products. Variable RAM-based pricing has been discontinued, and replaced with fixed CPU core-based pricing. This change aims to simplify the pricing structure, with fixed monthly prices billed in advance.
This updated pricing structure will apply to all providers who are part of the Broadcom APP. Providers who are not part of the APP will have less control over the pricing they pass on to their customers, as this will be determined by the third party they are purchasing their licences through. 
<h2>What next?</h2>
Our migration services for customers currently using VMware provide a cost-effective alternative. If you are currently using a VMware platform, and migrate to Hyve, we will work with you to ensure the migration is as seamless as possible. Our experts can identify your low traffic periods and complete the migration during these off-peak times to minimize any downtime. 
As a member of the Broadcom APP, Hyve benefit from directly purchasing licences, bringing cost savings, which we pass on to our customers. We can also work with our existing and new customers to optimize your core count, providing further cost-efficiency. 
If you want to know more about how the changes to VMware will affect your business, or to learn more about our migration services, book a call with one of our cloud experts. We can arrange a no-obligation consultation to assess your current position, what impact the changes will have, and advise on your best route forward. 
<a href="https://www.hyve.com/en-us/contact-us/">Fill out our contact form</a> and one of our cloud experts will be in touch.

We have been officially announced as a VMware Cloud Service Provider partner at the Premier Partner level in the Broadcom Advantage Partner Program.

How we are supporting customers through the changes to VMware by Broadcom

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Industry analysts warned of a potentially concerning “<a href="https://www.itpro.com/cloud/369926/cloud-growth-experiencing-slowdown-amid-rising-economic-disruption">cloud slowdown</a>” last year. This came as a result of enterprises cutting spending on cloud services due to tightening budgets and increased economic uncertainty. However, that’s projected to change in 2024.
While budgets remain tight, global cloud spending is expected to increase by 20 percent this year, according to new Canalys research. In addition, TechTarget and ESG Technology Spending Intentions research revealed the increasing importance of managed cloud service providers, particularly for industries driving cloud growth.
Let’s look at some of the reasons why, despite last year&#8217;s pessimistic prognoses and the volatile global economy, cloud spending is expected to hit new records this year.
<h2 data-block-key="24hc1">The rise of hybrid, multi and private cloud solutions</h2>
Companies are discovering that the evolving business landscape demands a more agile approach to cloud hosting. Despite the initial allure of public cloud services from hyperscalers, research from an <a href="https://www.datacenterdynamics.com/en/analysis/cloud-repatriation-and-the-death-of-cloud-only/">IDC survey </a>indicates their popularity is fading. While public cloud solutions served as a good starting point for digital transformations, the limitations and risks associated with these platforms have prompted the rise of alternatives.
With the rise of complex technologies such as AI and Edge computing, growing cybersecurity concerns, and the ever-present need for cost-effective IT solutions (both in good times and bad), businesses are increasingly turning to diversified and tailored cloud strategies. As the public cloud cannot support all these functions alone, so companies are diversifying their cloud presence by adopting private, hybrid, and multi-cloud architectures.
As more companies become aware of bespoke hybrid or private cloud platforms and how they can help to meet business needs, increased and proactive cloud investment is becoming the way to prepare businesses for growth and protect against challenging economic conditions.
<div class="block-pullquote">
<aside class=" sf-pullquote--right">As the public cloud cannot support all functions alone, companies are diversifying their presence</aside>
</div>
<div class="block-text">
In other words, companies are embracing the long-term benefits of the cloud.
However, the flip side is that it can be difficult to manage the increased complexity of a bespoke cloud environment, especially if there&#8217;s a shortage of cloud talent.
<h2 data-block-key="fa3ic">Growing demand for MSPs</h2>
Due to the talent shortage and increasing complexities in the management of emerging cloud platforms, managed service providers (MSPs) are becoming increasingly essential. Many organizations are expanding beyond their in-house IT teams with MSPs or simply foregoing their in-house team altogether, letting the business focus on its goals. At the same time, the MSP handles the cloud environment.
Security is also a significant element. According to a Checkpoint survey, <a href="https://www.checkpoint.com/press-releases/cloud-security-threats-remain-rampant-check-point-survey-reveals-heightened-concerns-for-76-of-organizations-amid-48-increase-in-cloud-based-network-attacks/">24 percent</a> of respondents reported experiencing public cloud-related security incidents, with misconfigurations, account compromises, and exploited vulnerabilities being the most common incident types. Therefore, companies also need assistance navigating the increasing complexity of cybersecurity. They seek partners who can bolster their ability to detect and respond effectively to threats.
The need for MSPs&#8217; knowledge and skills is particularly acute in some vertical industries that require time and expertise to reach technological maturity. Many companies in those sectors use MSPs to lead their cloud integration and manage cybersecurity.
<h2 data-block-key="fu86t">Cloud growth in vertical industries</h2>
Research from <a href="https://www.computerweekly.com/microscope/news/366572012/MSPs-seen-as-answer-by-skill-strapped-customers#:~:text=The%20latest%20TechTarget%20and%20ESG,support%20that%20MSPs%20could%20deliver.As">Tech Target</a> has identified some of the vertical markets set to be growing IT budgets the most this year, with finance, manufacturing, technology, and education leading the way. Here are some examples of how cloud technology is driving growth in these industries:
</div>
<div class="block-text">
<h3 data-block-key="fvz5d">Finance:</h3>
<ul>
<li data-block-key="6f553">Cloud technologies enable financial institutions to streamline processes, improve data analytics for risk management, and offer personalized services to customers.</li>
<li data-block-key="8hl3l">Adoption of cloud-based solutions in finance facilitates scalability, agility, and cost-effectiveness, allowing firms to adapt quickly to market changes and regulatory requirements.</li>
</ul>
<h3 data-block-key="bv7no">Manufacturing:</h3>
<ul>
<li data-block-key="cgndp">Cloud technologies support Industry 4.0 initiatives by optimizing production processes, enabling real-time data analytics, and fostering innovation in smart manufacturing.</li>
<li data-block-key="ecio">Manufacturers leverage cloud solutions to enhance efficiency, agility, and competitiveness by integrating IoT devices, AI applications, and automation into their operations.</li>
</ul>
<h3 data-block-key="anspa">Technology:</h3>
<ul>
<li data-block-key="6294n">Cloud computing enables tech companies to dynamically scale resources, reduce time to market, and innovate rapidly in response to market demands.</li>
<li data-block-key="4bost">Tech firms use cloud platforms for data storage, processing power, and AI capabilities to drive digital transformation and deliver cutting-edge solutions to customers.</li>
</ul>
<h3 data-block-key="eh50">Education:</h3>
<ul>
<li data-block-key="e5ohn">Cloud services are transforming the education sector by facilitating remote learning, collaboration among students and educators, and access to educational resources.</li>
<li data-block-key="154ob">Educational institutions use cloud technologies for virtual classrooms, online learning platforms, and data management systems to enhance teaching effectiveness and student engagement.</li>
</ul>
<h2 data-block-key="fvjq4">Key takeaways</h2>
Today&#8217;s world of economic volatility and geopolitical uncertainty, as well as the accelerated adoption of new technologies, is the driving force behind this year&#8217;s predicted increase in cloud investment. Many organizations now recognize that the cloud is the key to long-term competitiveness and that bespoke cloud solutions, including private, hybrid, and multi-cloud, are the route to business agility, adaptability and resilience.
Previously concerned about the challenges of managing bespoke but complex cloud environments, enterprises appear to be convinced of the benefits and are increasingly collaborating with experts from managed service providers.
MPSs are set to become an essential element of the cloud technology sector, evolving and driving cloud spending and attracting investments, particularly in industries such as finance, manufacturing, technology, and education.
</div>

Industry analysts warned of a potentially concerning “cloud slowdown” last year. This came as a result of enterprises cutting spending on cloud services due to tightening budgets and increased economic uncertainty. However, that’s projected to change in 2024.

Why cloud spending is on the rise

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Cloud-enabled digital transformation can take the form of migrating from on-premise to the cloud, migrating from one cloud solution or provider to another, or adopting a new cloud model such as hybrid cloud. A carefully considered and well-executed digital transformation can make your business more efficient and productive, optimizing your resources and improving your bottom line.
<h2>What is digital transformation?</h2>
Digital transformation uses technology to drive the business forward by integrating digital technologies into all aspects of operations. This could include cloud computing, artificial intelligence (AI), and automation. Integrating these technologies involves evaluating and restructuring existing processes and strategies in order to fully leverage their capabilities.   
As technology constantly evolves, businesses need to embrace the latest developments to stay competitive. The <a href="https://www.idc.com/getdoc.jsp?containerId=prUS51352323">IDC predicts</a> that by the end of 2027, digital transformation spending will reach 3.9 trillion USD worldwide, a compound annual growth rate of 16.1%. It is clear that digital transformation will be the centre of many business strategies in the years to come. 
Because every business is so diverse, digital transformation projects will differ for every company. For companies that have not traditionally centred technology, digital transformation could include migrating all or part of their workloads from on-premise to the cloud. For more technologically minded companies, digital transformations incorporate cutting-edge technological updates into their operations.
Digital transformation can take many different forms, but overall the aim will be to incorporate new technology to improve processes and cost-efficiency for the business.
<h2>What are the benefits of cloud-enabled digital transformation for businesses?</h2>
Cloud plays a central role in digital transformation, especially as major tech trends such as Internet of Things (IoT) and AI are driven by cloud.
Cloud-enabled digital transformation can take many forms. These could include migrating from on-premise to cloud infrastructure, adopting a High Performance Computing (HPC) server solution to run a heavy AI workload, or moving to a hybrid cloud separating workloads into the best suited environments. 
The cloud helps to transform businesses because it is so agile and flexible &#8211; it is possible to easily add resources to servers and move applications. It is also hugely cost-effective as users only pay for the resources that they use, as and when they require them.
There is a growing need for services and applications that are easy to access, navigate and use on any device. The cloud enables users to work remotely and collaboratively from anywhere, which is essential for any modern business.
Cloud solutions help businesses accelerate and streamline their day-to-day processes, creating a better experience for customers and employees.
Security is also a key motivation for many digital transformation projects. With managed cloud, businesses can protect their data by benefitting from several layers of infrastructure security, secure data centres and protection against threats or DDoS attacks.
<h2>A successful cloud-enabled digital transformation &#8211; Persimmon Homes</h2>
Persimmon Homes, one of the UK’s most successful house-building companies, undertook a significant digital transformation project, virtualizing 100% of its infrastructure. With a business-critical customer-facing website, Persimmon required the top quality in their infrastructure. Their previous hosting solution was not meeting this requirement, with numerous outages affecting their customer experience. Their digital transformation included migrating to a managed hosting solution with Hyve. Planning was essential, allowing the migration to take place with zero downtime.
6 months on, Persimmon Homes had achieved cost-savings of around £8000, in addition to greatly increased responsivity and performance on their site. 
‘The Hyve solution is rock solid, and we had a seamless migration experience,” Lance Evans, Digital Solutions Manager at Persimmon commented. “Our infrastructure is so much more scalable now as we’re able to predict costs ahead of time, driving home the value proposition that underpins our business mentality.’ 
Read full details of Persimmon Homes’ digital transformation project in <a href="https://www.hyve.com/case-studies/persimmons-homes-case-study/">our case study.</a>
<h2>Addressing problems businesses face with digital transformation</h2>
True digital transformation requires in-depth reviewing of current infrastructure, planning, and implementing solutions. This can be a lengthy process for businesses. Additionally, digital transformation can mean so many different things, and a lot of businesses are confused about how to approach the project. 
When planning any digital transformation, you should assess your unique business goals and challenges, and any industry requirements. This will narrow down your options and give you a clearer idea on your strategy. An experienced provider will work with you to address your concerns, answer your questions, and make the process as efficient as possible.
Some businesses are still resistant to change. They could feel that taking on a project is risky, or the project is too involved. Often legacy equipment and software has been in place for years and the migration and setup to new systems could be off-putting. A detailed project plan ensures that the process is as streamlined as possible to avoid these issues.
Businesses may be cautious about undertaking a large digital transformation project due to a lack of in-house understanding or expertize on the new technologies. Incorporating a managed cloud solution eliminates the need for an in-house technical team. Managed hosting providers take control of your servers and systems, giving you all of the benefits of cloud while leaving you to focus on your business.
<h2>Begin your digital transformation</h2>
Do you have a digital transformation strategy? <a href="https://www.hyve.com/en-us/contact-us/">Get in touch with Hyve</a> to discuss the benefits of moving to the cloud and see how we can help you choose the right solution for your business.

Digital transformation adopts technologies that make working life more efficient. Does your business have a digital transformation strategy?

How can your business benefit from digital transformation?

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