AWS is going to offer VMware Cloud Foundation through Amazon Elastic VMware Service. In doing so, AWS is following the competition, conceding to Broadcom’s demands.
AWS is launching a preview of the Amazon Elastic VMware Service. That’s a new service that allows customers to run VMware Cloud Foundation (VCF) within their Amazon Virtual Private Cloud (VPC). The solution allows users to work with their portable VCF licenses and run the workloads alongside other workloads in AWS.
Amazon EVS should simplify the rollout of the VCF environment, making a migration from VMware-based machines to the cloud relatively smooth. AWS itself does not mention anything about dedicated hosts for the VCF environment, although in principle that is necessary under Broadcom’s terms around license portability.
AWS and VMware have a long history. Back in 2016, the two partnered on a VMware cloud solution. He jointly developed VMware Cloud on AWS was managed by VMware and hosted AWS. AWS was also allowed to resell the solution.
Get rid of resellers
Broadcom did away with that arrangement after acquiring VMware. AWS was no longer allowed to be a reseller. In response, AWS directed that customers migrate away from VMware Cloud on AWS to a non-VMware solution.
Broadcom bet heavily on VCF after the acquisition, which it plans to market directly to the very largest customers. Its partner program was decimated, and big guys like AWS were not spared. Broadcom claims that the VCF offering is simpler and more affordable, but does not say that that claim is true only for the very largest customers. Lots of slightly smaller parties are paying blue, while resellers have had to reinvent themselves.
Broadcom wins
Broadcom gambled, and won. Under pressure from other cloud providers, even AWS is now turning its cart, and is going to offer VCF under Broadcom’s rules. Financially, the strategy is not harming the company either. Although angry customers are dropping out if they can work their way out of the lock-in, VMware’s costs are falling faster than revenue, resulting in happy shareholders.