Five things to know about Azure, AWS, and Broadcom

Here's everything you need to know about the new VMware Cloud Foundation offering on Google Cloud VMware Engine, incentives, price reductions, and how it relates to Microsoft Azure and AWS VMware cloud solutions.

Google Cloud is aggressively encouraging VMware Cloud Foundation customers to migrate their VMware workloads to Google Cloud Platform by lowering commitment prices by 20%, offering migration incentives of up to 40%, and supporting VMware license portability to Google Cloud.

“Now is the perfect time to migrate your VMware workloads to Google Cloud to save costs and benefit from a modern cloud experience,” Manoj Sharam, director of product management for machine learning, systems and cloud AI, said in a blog post.

With the general availability of VMware Cloud Foundation on Google Cloud VMware Engine (GCVE), Google is reducing the price of VMware Cloud Foundation (VCF) support commitments by 20%.

[Related: Wanclouds Seeks Helpless VMware Clients With Free AWS, IBM Cloud Migration Offer]

Additionally, the company is offering commercial incentives worth up to 40% of GCVE's first-year spend as an additional migration and consumption incentive. Together with Google Cloud partners, Google is also offering free proofs of concept (POCs) and trials for customers looking to migrate their VMware workloads to Google Cloud.

Finally, Google and Broadcom will support license portability for VCF, allowing customers to preserve their VMware investments by porting their on-premise VCF licenses to GCVE.

Before we dive into each of the features within the new Google Cloud VMware Engine offer, let's take a look at what's happened to VMware over the past 18 months.

Broadcom has trimmed VMware's portfolio of thousands of products to four core products since acquiring VMware for $69 billion in late 2023. Broadcom has also made significant changes to VMware, raising prices, eliminating the VMware partner program and barring Amazon Web Services partners from reselling VMware Cloud on AWS.

Google Cloud, Microsoft Azure and AWS are competing on a number of technology fronts, from AI and generative AI to channel partner mindshare and VMware hybrid cloud customers. AWS currently holds a 31% share of the global cloud services market, followed by Microsoft with 25% and Google Cloud with 11%, according to market research firm Synergy Research Group's Q1 2024 data.

CRN details the five biggest features of Google Cloud's new VMware Cloud Foundation service and how it relates to Azure VMware Solution and VMware Cloud on AWS.

GCVE can be up to 30% cheaper than Azure VMware Solution

One of the key features of the new Google Cloud VMware Engine with VMware Cloud Foundation service is several new GCVE node types that can cost-effectively match your workload requirements.

In fact, GCVE with VCF can be up to 30 percent cheaper than Azure VMware Solution, Google Clouds' Sharam said.

GCVE is now offering enhanced discounts on its node platforms, including VE1 and VE2 licenses, with new 1-year and 3-year contract terms. VE1 nodes are now 22% cheaper than previous pricing, and VE2 nodes are offering discounts of up to 55% on 3-year upfront contracts.

Sharam says these changes will result in significant savings: For example, for ve1-standard-72, a three-year upfront commitment in us-central1 (Iowa) costs $3.60 per hour, while an AV36P three-year reserved instance in Azure in the US Central location costs $5.17 per hour.

Azure VMware Solution, which competes directly with GCVE on VCF, offers a private cloud that includes VMware vSphere clusters built from dedicated bare-metal Azure infrastructure.

It is important to know that Microsoft has also launched new licensing benefits and discounts this year to help VMware customers migrate and run their workloads on Azure VMware Solutions.

Click to read about 4 other big features and key market aspects of GCVE with VCF.

Google Cloud lowers commitments, offers free POCs and incentives

Google has reduced its VMware Cloud Foundation (VCF) support commitment pricing by 20% to encourage migration to VMware customers.

Another important feature is that Google Cloud allows free evaluation and proof of concept (POC) for customers funded by Google Cloud and Google partners, meaning that customers will receive a free roadmap and cost structure on how to implement Google Cloud VMware Engine in their VCF.

For new customers who sign a Google Cloud Enterprise or Flex Agreement, Google is offering a Migration Services Incentive equal to up to 25% of your net spend increase in the first year to support migration services.

Additionally, new Google Cloud VMware Engine customers on VCF can receive an incremental consumption incentive of up to 15% additional credits on their net GCVE consumption in the first year.

VMware Cloud Foundation License Portability

Google worked with Broadcom to create support for VCF license portability entitlements in GCVE, allowing customers to preserve their VMware investments by porting their on-premise VCF licenses to GCVE.

With the GCVE commitment type that supports portability, you can pay Google only for VMware Engine services and infrastructure and apply previously purchased VCF licenses, Google's Sharam said.

By bringing their own VCF subscriptions to GCVE, clients can avoid the cost of purchasing new licenses, potentially saving money compared to the previous pricing model.

For example, compared to previous pricing, which included a VMware license, customers can get a VE1 node with portability support for up to 35% less on a three-year upfront contract, Sharam said.

Google Partners: Enabling VMware Cloud on AWS Customers to Switch

The VMware Cloud Foundation platform brings together VMware's compute, storage and network virtualization capabilities as well as new innovations such as Aria Suite Enterprise and Aria Operations for Networks Enterprise.

VMware Cloud Foundation is available in various versions on Google Cloud, Microsoft Azure and AWS.

However, in May, Broadcom dropped its AWS channel partnerships.

VMware Cloud on AWS is no longer sold directly by AWS or its channel partners. Broadcom CEO Hock Tan said in May that “that's it.” This means that customers who previously bought VMware Cloud on AWS from AWS will now work with Broadcom or one of its authorized resellers to renew their subscriptions and expand their environments.

One of the top executives of Google Cloud and AWS partners in the country said the move has raised concerns from VMware Cloud on AWS customers about future support.

Google is eyeing its VMware Cloud on AWS customers with these new offers, new nodes, new incentives, free POCs and more, said an executive who asked not to be named. [VMware Cloud on AWS] Customers will eventually lose support [AWS] The reality is that partners cannot provide support for the solution.

The executive said the company plans to offer the new Google Cloud VMware Engine on VCF service to several current customers who use VMware Cloud on AWS.

“Because of the TCO incentives that Google gives us, this is an easy conversation for us. We think we can get our VMware Cloud on AWS customers to switch to GCP,” he said. “We're a much bigger Google shop than AWS is, so this is an easy decision for us.”

Convertible GCVE Commitment

Another big incentive included in VCF’s GCVE is a new convertible three-year GCVE commitment that allows customers to convert a portion of their previous commitment into other services.

Google said that customers evolve their workload architectures as they bring workloads onto GCVE, but were unable to reuse existing GCVE commitments.

To support this flexibility, Google is pleased to announce a new three-year GCVE commitment that will allow customers to convert part of their commitment to other services, such as Compute Engine or GKE, or other options in GCVE, for an additional fee, Google's Sharam said.

For example, users can dynamically scale web-serving servers on Compute Engine or GKE to extend their VMware environments.

With Google Cloud VMware Engine with VMware Cloud Foundation, Google acts as the cloud support system for VMware infrastructure, meaning that Google's VMware Engine can support all of VMware's recently updated Cloud Foundation services.

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