Source URL: https://www.theregister.com/2024/12/02/beeks_group_vmware_opennebula_migration/
Source: The Register
Title: Broadcom loses another big customer: UK fintech cloud Beeks Group, and most of its 20,000 VMs
Feedly Summary: A massively increased bill was one motive, but customers went cold on Virtzilla, and OpenNebula proved more efficient
Broadcom has lost another significant customer after UK-based cloud operator Beeks Group decided to adopt the open source OpenNebula stack.…
AI Summary and Description: Yes
Summary: The text discusses Beeks Group’s transition from VMware to the open-source OpenNebula stack, emphasizing the operational and financial benefits of this decision. It highlights the growing trend of companies reevaluating their cloud service providers in light of increased costs and reduced support from traditional vendors, such as Broadcom’s VMware.
Detailed Description:
The text centers on Beeks Group, a UK-based cloud operator that decided to switch from VMware to OpenNebula for several key reasons related to cost, operational efficiency, and customer demand for lower latency and enhanced security. Here are the significant points:
– **Customer Migration**: Beeks migrated to OpenNebula after receiving a substantial bill from Broadcom for VMware licenses, which was ten times what they previously paid. This financial burden prompted reconsideration of their cloud stack provider.
– **Operational Needs**: Beeks operates in over 20 datacenters and manages a large fleet of virtual machines and bare metal servers. They sought a hybrid cloud solution that efficiently managed both types of infrastructure without excessive overhead.
– **Support and Innovation Concerns**: Beeks reported declining satisfaction with VMware’s support services and perceived innovation, which compelled them to look for alternatives that would meet their needs more effectively.
– **Migration Challenges**: Transitioning to OpenNebula wasn’t straightforward. Beeks had to rebuild proprietary software linked to VMware APIs to work with their new cloud stack. However, they were able to develop tools to gather valuable performance metrics during this migration.
– **Cost and Efficiency Gains**: Shifting to OpenNebula led to a 200 percent increase in virtual machine efficiency, allowing Beeks to run more VMs per server and reduce costs for themselves and their customers.
– **Market Trends**: The mention of other businesses, like AT&T and Geico, moving away from VMware suggests a broader trend of organizations reassessing their relationships with traditional cloud vendors, especially under new licensing terms post-acquisition by Broadcom.
– **Future Considerations**: Beeks continues to offer VMware services to clients who prefer that option but highlights an opportunity for others reconsidering their own cloud arrangements as their contracts come up for renewal.
This case serves as a relevant insight for security and compliance professionals, highlighting the complexities and decision-making processes involved in cloud migration and vendor selection amidst changing market dynamics. It underscores the importance of aligning cloud infrastructure with both financial considerations and operational needs to maintain security and efficiency.