Today, migrating to the cloud goes beyond a technical upgrade. It is a strategic initiative that transforms your organization’s cost structure, operational efficiency, and competitive edge. For companies relying on legacy VMware environments, one of the most compelling drivers for migration is the opportunity to cut down on costly licensing fees and unlock unprecedented capabilities for enterprise AI.
Forrester predicts that 20% of VMware enterprise customers will migrate from the VMware stack due to significant price hikes, degrading support and a mandatory subscription to software bundles.
The business opportunity of migrating to the cloud
For many organizations, the steep costs associated with VMware licensing and the limitations of on-premises hardware serve as strong motivators to explore alternative platforms. Migrating to the cloud not only reduces these financial pressures but also creates an environment where enterprise AI will thrive by opening up new revenue streams and competitive advantages. By transitioning to a cloud-based infrastructure, you achieve:
- Enhanced agility. Cloud environments allow you to rapidly scale resources based on demand, resulting in the ability to respond swiftly to market fluctuations.
- Cost efficiency. Transitioning from costly on-premises VMware environments to a pay-as-you-go cloud model leads to long-term savings, freeing up capital for innovation.
- Improved performance. Modern cloud platforms offer robust performance and reliability, ensuring that your applications, especially those leveraging AI, operate seamlessly, even under heavy workloads.
- Innovation enablement. The cloud provides immediate access to high-performance computing, GPUs, and advanced storage solutions essential for enterprise AI initiatives. These resources empower your organization to build, train, and deploy AI models faster than ever before.
- Disaster recovery and business continuity. Cloud solutions offer advanced disaster recovery options, ensuring data resilience and continuous operations even in the face of unexpected disruptions.
The key to enterprise AI capabilities
On-premises VMware environments, while robust, often lack the scalability and flexibility required for modern AI workloads. Migrating to the cloud, in turn, enables you to both reduce dependency on legacy systems and create a dynamic platform for accelerating AI initiatives that drive business value. This is achieved by providing:
Access to high-performance compute and GPUs
Cloud platforms offer powerful compute instances equipped with GPUs, which are essential for training complex AI models and processing large datasets efficiently.
Scalable storage solutions
Virtually limitless storage options can grow with your data needs, ensuring that your enterprise AI applications have rapid access to the data required for real-time analysis.
Data integration and analytics
Businesses can integrate data from diverse sources, enabling richer insights and more accurate AI predictions.
Rapid deployment and experimentation
The cloud allows your organization to quickly spin up and down resources, fostering a culture of innovation where AI prototypes can be rapidly developed, tested, and scaled.
This suite of cloud capabilities is a first step into a modernization journey that effectively removes the traditional barriers to enterprise AI adoption.
Understanding VMware workloads and the cost factor
Even though VMware is one of the most adopted virtualization technologies, with a share of 36% in 2024, as business needs evolve, the high costs associated with its licensing and the limitations of on-premises hardware become more pronounced. These expenses erode profit margins and divert valuable resources away from innovation and growth initiatives.
Shifting from traditional, license-heavy environments to a cloud model eliminates ongoing VMware licensing fees, leading to significant savings. Moreover, the cloud’s dynamic resources provide the compute power, storage, and specialized hardware (like GPUs) necessary for enterprise AI. It enables your organization to develop and deploy cutting-edge solutions more efficiently.
Next steps
As enterprises are burdened by high VMware licensing fees and limited by on-premises hardware, cloud migration offers a pathway to not only lower expenses but also to unlock critical resources for enterprise AI. With a clear understanding of the environment in which today’s businesses operate, the next step is to build a migration strategy that meets the unique needs and goals of your current business.
In the next article, you will discover a comprehensive overview of the four top migration options for VMware workloads, the benefits of each of them, key considerations, and best practices needed for successful migration. You’ll also find out which strategic approach works for you and lay the foundation for robust, scalable AI applications.
