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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 virtualisation 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 utilise VMware’s top enterprise-grade virtualisation 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 virtualisation software, used to power cloud infrastructure. Virtualisation 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 utilising 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/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 finalised, 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 recognised VMware provider, meaning you can continue to use the VMware platform.
Learn more about <a href="https://www.hyve.com/cloud-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 minimise 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 optimise 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/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

How we are supporting customers through the changes to VMware by Broadcom | Hyve Managed Hosting

We are proud to be the UK&#039;s leading &lt;span class=&quot;vmware&quot;&gt;VMware Cloud Hosting&lt;/span&gt; provider specialising in custom, complex configurations backed with superior customer service.

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<a href="https://www.datacenterdynamics.com/en/opinions/why-cloud-spending-is-on-the-rise/">Originally published by Datacentre Dynamics</a>
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.

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. 

Why Cloud Spending is on the Rise

Why Cloud Spending is on the Rise | Hyve Managed Hosting

A cloud solution is a natural fit for logistics businesses. Tailor-made, managed cloud infrastructure can optimise your infrastructure, maximising performance, minimising business disruption, and streamlining processes. In order to secure the highest standard infrastructure to support your business needs, there are several factors you should consider. 
<h2>Access to a global network</h2>
A Managed Service Provider (MSP) with access to a global network of data centres and vendors, without the need to coordinate this yourself, allows you to distribute compute and reduce the risk of <a href="https://www.hyve.com/insights/mitigating-cloud-concentration-risk/">cloud concentration</a>. Particularly in the logistics industry, this connection and communication between all components of the chain is vital &#8211; dealing with issues becomes particularly resource-intensive and difficult when managing your infrastructure as an individual business. Management is important to this interconnected infrastructure &#8211; for example, if there was a disaster at one site, an MSP can manage your disaster recovery strategy, ensuring that you are able to fail over to another site, and restore from backups to minimise disruption to your services. If you had an unmanaged solution, you would need to manage this internally, using your own staff time and resources. 
Access to a global data centre network also reduces latency. Speed of data transfer is vital in logistics, where real-time tracking and communication is required. If your logistics business is operating across multiple regions, relying on one central data centre can slow this transfer, as there is a greater physical distance between the end user and the location where the data is processed. When your data is distributed across multiple sites, this latency is greatly reduced, meaning your processes run at optimum speeds. 
<h2>Support for edge and IoT devices</h2>
Edge computing is now central to the infrastructure of many logistics companies, and this is only predicted to increase. Cloud infrastructure supports and enhances the use of edge computing to the benefit of your business.
In logistics, edge computing can take the form of Internet of Things (IoT) devices in warehouses, cargo centres and delivery vehicles which can monitor variables including stock levels, vehicle locations, container temperature and more. When used in combination with a cloud solution, these insights can be processed to optimise routes, predict stock needs, and forecast maintenance requirements. 
The IoT devices can be used to process data locally to the source, allowing for quicker processing of vital data versus transferring the data to a central location. Once this data is processed on the edge, the metadata can be sent to a central data centre for analysis and data enrichment to further streamline your future processes. Having this data stored on the cloud means it can be accessed across your operation, and backed up securely to prevent data loss.
To enjoy these benefits, you should consider a provider with flexible solutions, who can work with you to design a bespoke solution incorporating edge computing, IOT devices, and cloud environments to meet your exact needs. You can also consider working with an MSP who can manage your network, as this can be resource intensive to manage in-house. 
<h2>Disaster recovery and business continuity</h2>
Logistics is a fast-paced industry, with disruptions having the potential to cause major issues. With cloud infrastructure, you benefit from robust back-up and disaster recovery solutions. 
<a href="https://www.hyve.com/cloud-hosting/disaster-recovery/">Disaster recovery</a> refers to the process of resuming business operations after a disaster, which could include a cyber attack, natural disaster, power outage, or any other unforeseen event that puts your business at risk. These disasters have the potential to cause downtime, breaks in communications between sites, or loss of essential data. 
An MSP can support your business with a disaster recovery plan consisting of processes and procedures to resume normal business operations in the shortest possible time. This can include regular backup of your data to a secondary site, meaning that in the case of a disaster, your data is not lost, and can be restored swiftly. 
Cloud infrastructure also allows for high availability, which additionally reduces downtime and maintains business continuity. High availability means that infrastructure is continuously operational, with built-in hardware, software and environmental redundancies eliminating single points of failure.
The combination of high availability and disaster recovery that is possible with cloud computing is essential to logistics businesses, and should be a key consideration when reviewing your infrastructure options.
<h2>Unlimited scalability</h2>
Demand can fluctuate in the logistics industry for both predictable and unforeseen circumstances &#8211; for example political and global affairs impacting demand for certain products, seasonal variations impacting food production, or Black Friday and Christmas increasing delivery and shipping requirements. 
Cloud solutions are ideal for reactive scalability, allowing you to increase and decrease your resources dynamically to handle this fluctuation. 
When considering providers, it is important that they are transparent with their pricing. Some cloud providers will have low initial costs, but have dramatically escalating prices or hidden fees for scaling up your resources. You should also ensure your provider can be reactive with scalability, so that in the instance that your resource needs decrease, your platform is promptly scaled down and you are not left paying for resources you don’t need. 
<h3>Are you considering a new cloud solution for your logistics business? </h3>
Find out how Hyve can support you on our <a href="https://www.hyve.com/logistics-hosting/">dedicated logistics sector page</a>, or <a href="https://www.hyve.com/contact-us/">contact our cloud experts</a>.

A cloud solution is a natural fit for logistics businesses. Tailor-made, managed cloud infrastructure can optimise your infrastructure, maximising performance, minimising business disruption, and streamlining processes.

Cloud computing considerations for the logistics industry

Cloud computing considerations for the logistics industry | Hyve Managed Hosting

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