Broadcom and Google Cloud Announce License Portability Support for VMware Cloud Foundation on Google Cloud VMware Engine
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Insights
The strategic collaboration between Broadcom and Google Cloud to support VMware Cloud Foundation license portability offers significant implications for the cloud services market. This partnership is poised to enhance the flexibility of cloud infrastructure management, particularly for enterprises that are looking to optimize their hybrid cloud strategies. By allowing customers to transfer and scale their VMware Cloud Foundation subscriptions across on-premises data centers and Google Cloud VMware Engine, there is a direct impact on operational expenditure (OPEX) and total cost of ownership (TCO).
Businesses can benefit from a reduction in capital expenses as they pivot away from purchasing and maintaining physical hardware. Moreover, the ability to pay for cloud resources on an as-needed basis presents a cost-efficient model that aligns with dynamic business demands. The integration with Google Cloud services, including AI, ML and data analytics, can enhance the value proposition by enabling enterprises to unlock actionable insights and drive innovation.
From a market perspective, this move could potentially increase Google Cloud's competitive edge in the cloud market, particularly against rivals like AWS and Azure. It could also influence stock market performance for both Broadcom and Google as investors may view this collaboration as a growth catalyst in the cloud computing segment.
The announcement of VMware Cloud Foundation license portability represents a strategic move that could influence Broadcom's and Google Cloud's financial performance. The flexibility and cost savings associated with this initiative can be a compelling selling point that may drive increased adoption rates for Google Cloud services and subsequently, potentially boost revenue streams for both Broadcom and Google.
Investors should monitor the uptake of this service offering post-launch to gauge its impact on revenue growth. The ability to streamline operations and leverage Google Cloud's advanced networking and security features could translate into a strong value proposition for potential enterprise customers, potentially leading to market share gains. As enterprises continue to migrate to cloud environments, the demand for such integrated solutions is expected to rise, which could be reflected in the stock prices of the involved companies.
Additionally, the partnership could also lead to cross-selling opportunities, where customers utilizing VMware Cloud Foundation may be more inclined to explore other Google Cloud services, thereby increasing customer lifetime value.
The technological implications of the VMware Cloud Foundation's license portability to Google Cloud VMware Engine are substantial. This initiative addresses a critical pain point in cloud computing – the need for seamless migration and interoperability between on-premises and cloud environments. By enabling businesses to retain their software subscription rights and move between environments, Broadcom and Google Cloud are promoting a more ubiquitous and flexible cloud infrastructure.
The promise of a unified Google Cloud experience, coupled with VMware's established infrastructure management tools, can significantly streamline cloud operations. This level of integration is likely to accelerate digital transformation efforts and could set a new industry standard for hybrid cloud solutions. The commitment to a 99.99% uptime and high-speed connectivity also underscores the growing emphasis on reliability and performance in cloud service offerings.
From an industry standpoint, competitors may need to respond with similar offerings to meet customer expectations for flexibility and ease of use in cloud environments. This could lead to an increase in R&D investments across the sector and potentially spur a new wave of innovation in cloud infrastructure services.
Customers will be able to deploy their own VMware Cloud Foundation subscriptions to Google Cloud VMware Engine while maintaining license entitlements
PALO ALTO, Calif., Feb. 14, 2024 (GLOBE NEWSWIRE) -- Broadcom Inc. (NASDAQ:AVGO) and Google Cloud today announced plans to support license portability of VMware Cloud Foundation to Google Cloud VMware Engine. Customers will be able to purchase subscriptions of the new VMware Cloud Foundation software from Broadcom and flexibly use those subscriptions in Google Cloud VMware Engine, as well as their own on-prem data centers. Customers will retain the rights to the software subscription when deploying VMware Cloud Foundation on Google Cloud VMware Engine and have the ability to move their subscription between supported environments as desired.
VMware Cloud Foundation delivers a private cloud infrastructure that is ubiquitous, flexible and integrated across cloud endpoints. VMware customers that have already purchased and begun deploying VMware Cloud Foundation will be able to transfer the remaining value of an existing subscription to Google Cloud VMware Engine. Additionally, customers will be able to move their VMware Cloud Foundation subscription between on-prem and Google Cloud VMware Engine (and vice versa) as their needs and requirements evolve over time. In addition to bringing their own VMware Cloud Foundation licenses to Google Cloud VMware Engine, customers will continue to have the option to purchase a fully-integrated Google Cloud VMware Engine environment inclusive of VMware Cloud Foundation software directly from Google Cloud.
“VMware by Broadcom is adding new levels of flexibility, investment protection and lower TCO for VMware Cloud Foundation with support for license portability,” said Krish Prasad, general manager, VMware Cloud Foundation division, Broadcom. “By running VMware Cloud Foundation on Google Cloud VMware Engine, customers benefit from a highly efficient cloud operating model that provides the scale and agility of public cloud with the security and performance of private cloud.”
“As the first public cloud partner to announce plans to support VMware Cloud Foundation license portability , Google Cloud remains committed to improving the simplicity and cost-effectiveness of our customers’ cloud migration and digital transformation initiatives,” said Mark Lohmeyer, vice president and general manager, Compute and ML Infrastructure at Google Cloud. “Through this model, our customers can realize the unique benefits of Google Cloud VMware Engine, such as four 9’s cluster-level uptime, deeply integrated networking and a unified Google experience along with the full portfolio of Google Cloud services across AI/ML, data analytics, security, and more.”
With VMware Cloud Foundation on Google Cloud VMware Engine, customers will be able to:
- Simplify infrastructure: seamlessly migrate virtual machines and workloads to Google Cloud and deeply integrate with Google's powerful networking architecture.
- Streamline operations: manage cloud-based resources using the same familiar VMware tools and resources, while also accessing native containerized applications; and benefit from a simple and unified Google Cloud experience, with integrated IAM and rapid self-service provisioning.
- Improve economics: increase capacity with lower OPEX by scaling workloads into Google Cloud Platform and paying only for resources as they are utilized and improve TCO by reducing capital equipment expenses and installation costs.
- Unlock insights: convert data into intelligent insights by utilizing Google Cloud services with Google Cloud VMware Engine, such as BigQuery, AI, and Machine Learning (ML) applications.
- Improve reliability and security: leverage industry-leading security with VMware NSX and Google Cloud, including private high-speed networking and dedicated cluster design, and enterprise-grade availability with
99.99% uptime and 100Gbps of dedicated east-west connectivity.
Broadcom and Google Cloud expect VMware Cloud Foundation license portability to Google Cloud VMware Engine to be available publicly in the second quarter of calendar year 2024.
Additional Resources
- Learn more about Google Cloud VMware Engine and VMware Cloud Foundation
- Follow VMware Cloud Foundation social channels on LinkedIn and X, formerly known as Twitter
About Broadcom
Broadcom Inc. (NASDAQ: AVGO) is a global technology leader that designs, develops, and supplies a broad range of semiconductor, enterprise software and security solutions. Broadcom's category-leading product portfolio serves critical markets including cloud, data center, networking, broadband, wireless, storage, industrial, and enterprise software. Our solutions include service provider and enterprise networking and storage, mobile device and broadband connectivity, mainframe, cybersecurity, and private and hybrid cloud infrastructure. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, go to www.broadcom.com.
Media Contacts
Roger T. Fortier
VMware By Broadcom
1.408.348.1569
roger.fortier@broadcom.com
FAQ
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