If your business runs on VMware, the market shift happening right now matters. Broadcom’s acquisition of VMware is already changing the cost structure, and many organizations will see their pricing increase. For Washington businesses working hard to control expenses and keep IT predictable, this change is hard to ignore.

The good news is that you have strong alternatives. Modern platforms offer the performance, scalability, and reliability you expect, often with simpler licensing and far lower long-term costs. Before you renew or expand your VMware footprint, it is worth taking a careful look at what else is available.

Below is a clear breakdown of the leading options and what to consider next.

Why VMware Pricing Is Going Up

Broadcom is shifting VMware toward a subscription-first model and tightening up its partner ecosystem. For large enterprises, this aligns with their budgets and long-term planning. For small and midsize organizations across Washington, it introduces new challenges.

Many businesses built their systems around VMware’s predictable licensing. With that predictability disappearing, the cost of staying with VMware will increase year after year. Hybrid environments are also becoming more complex to license, which creates even more pressure to rethink your strategy.

This is why so many IT leaders are taking a fresh look at alternatives that offer more flexibility and better value.

The Top VMware Alternatives for On-Premises Virtualization

There is no shortage of options, but several stand out for their maturity, stability, and cost-effectiveness. Here are the platforms most Washington businesses should consider.

1. Nutanix AHV

Overview: Nutanix AHV runs on the KVM hypervisor and delivers a unified platform for compute, storage, and networking.

Best for: Organizations that want a modern, streamlined virtualization stack with powerful management tools.

Pros:

• Simple, intuitive management through Nutanix Prism

• Built-in availability features

• Strong hybrid cloud capabilities

Cons:

• Higher cost than open-source solutions

• Less flexibility with mixed hardware environments

2. Proxmox VE

Overview: Proxmox VE is a popular open-source platform that combines KVM and LXC containers under one management interface.

Best for: Businesses with technical teams that prefer Linux-based environments and want to keep licensing costs low.

Pros:

• No licensing fees for core features

• HA, clustering, and backups included

• Strong open-source community

Cons:

• Paid subscription required for enterprise support

• Fewer third-party integrations than VMware

3. KVM

Overview: KVM is a native Linux hypervisor known for performance, flexibility, and security.

Best for: Organizations with in-house Linux expertise that want full control.

Pros:

• Fast and secure

• No vendor lock-in

Cons:

• No built-in centralized management

• Higher learning curve

4. Microsoft Hyper-V

Overview: Hyper-V integrates directly with Windows Server and the Microsoft ecosystem.

Best for: Businesses already invested in Microsoft technologies.

Pros:

• Included with Windows Server

• Smooth integration with Active Directory and System Center

Cons:

• Less ideal for diverse environments

• Slower innovation cycle compared to open-source platforms

5. Citrix Hypervisor

Overview: Built for VDI and digital workspace environments.

Best for: Companies using Citrix Virtual Apps and Desktops.

Pros:

• Strong VDI performance

• Tight Citrix integration

Cons:

• Expensive and complex for general virtual workloads

6. OpenStack

Overview: A powerful open-source platform for building private clouds with full orchestration.

Best for: Large enterprises or service providers running complex infrastructures.

Pros:

• Highly scalable

• Full API-driven architecture

Cons:

• Difficult to deploy

• Requires dedicated expertise

Containers: The Next Step in Modern Infrastructure

Many businesses are also shifting toward containerization. Containers are lighter, faster to deploy, and ideal for cloud-native environments. Platforms like Red Hat OpenShift or Cycle.io allow your team to manage containers, virtual machines, and serverless workloads from one interface.

Containers can lower resource usage, accelerate deployment, and simplify scaling. While they do not replace all virtualization needs, they are becoming a major part of modern IT strategy.

Before You Move: Key Questions to Ask

Choosing the right platform starts with understanding your environment. Ask yourself:

• What workloads do we run today, and what will we run 12 months from now?

• Does our team prefer Linux-based systems or vendor-supported platforms?

• What is our real budget once licensing, support, and migration are factored in?

• How important is scalability as our business grows?

A clear strategy will prevent expensive surprises later.

The Bottom Line

Broadcom’s VMware changes may not be ideal, but they give many organizations the push they needed to modernize. Whether your goal is to reduce licensing costs, eliminate vendor lock-in, or build a more scalable infrastructure, you are not short on options.

The key is choosing a platform that aligns with your business, your team, and your long-term strategy.

Ready to Evaluate Your Options?

CyberStreams works with Washington businesses to assess, plan, and implement the right virtualization strategy. Whether you stay with VMware or move to a more cost-effective platform, we make sure the transition is smooth, secure, and aligned with your goals.

Learn more about how we support businesses across Washington:
https://cyberstreams.com/seattle-it-support