AWS will offer VMware Cloud Foundation through Amazon Elastic VMware Service. AWS is thus following the competition and giving in to Broadcom’s demands.
AWS launches preview of Amazon Elastic VMware Service. This is a new service that enables customers to run VMware Cloud Foundation (VCF) in their Amazon Virtual Private Cloud (VPC). The solution allows users to work with their portable VCF licenses and run the workloads alongside other workloads on AWS.
Amazon EVS is designed to simplify the deployment of the VCF environment so that migrating VMware-based machines to the cloud is relatively smooth. AWS itself does not mention anything about dedicated hosts for the VCF environment, although this is fundamentally necessary according to Broadcom’s terms regarding the portability of the license.
AWS and VMware have a long history. In 2016, the two teamed up for a VMware solution in the cloud. The co-developed VMware Cloud on AWS was managed by VMware and hosted by AWS. AWS was also allowed to resell the solution.
Get rid of resellers
Broadcom eliminated this agreement after acquiring VMware. AWS was no longer allowed to be a reseller. In response, AWS directed its customers to migrate from VMware Cloud on AWS to a non-VMware solution.
After the acquisition, Broadcom focused heavily on VCF, which it plans to market directly to its largest customers. The partner program was decimated and big boys like AWS were not spared. Broadcom claims that the VCF offering is simpler and more affordable, but does not say that this claim only applies to the very largest customers. Many smaller parties are paying off their debts while resellers have had to reinvent themselves.
Broadcom gambled and won. Under pressure from other cloud providers, even AWS is now turning around and offering VCF according to Broadcom’s rules. The strategy also benefits the company financially. Although disgruntled customers will exit if they can fight their way out of the lock-in, VMware’s costs are falling faster than revenue, resulting in happy shareholders.