• Rethinking virtualization in the age of AI IT leaders look to revamp their virtualization strategies as AI demands and cost increases lead to concerns about current setups. • Concerns about cost unpredictability and AI readiness are prompting IT leaders to plan major changes to their virtualization strategies. • According to anew surveycommissioned by HPE, two-thirds of IT decision-makers are thinking about revamping their virtualization deployments in the next two years, but only 5% say their organizations are ready for the change. • Cost concerns are one driver of what HPE calls the “great virtualization reset.” Tech giant Broadcom’s acquisition of market leaderVMwarein late 2023 led tolicensing cost increases, prompting some organizations to “devirtualize,” although over half of organizations in the survey are still running VMware as their primary virtualization platform. • In addition to the VMware price hikes, IT leaders have noted that cloud costs are running higher than expected this year, according to the survey. • “Their virtualization bill just like quintupled, and they have to invest in AI, they have salary modernization, and now they’re saddled with this bill that they can’t afford,” saysHang Tan, COO for hybrid cloud at HPE.
Article Summaries:
- A new HPE‑commissioned survey shows that two‑thirds of IT decision‑makers plan to overhaul their virtualization stack within the next two years, yet only 5 % feel ready for the change. Rising costs-spurred by Broadcom’s 2023 acquisition of VMware and higher cloud bills-combined with the need for AI‑ready infrastructure are driving this “great virtualization reset.” Many firms still rely on VMware but are exploring hybrid cloud, unified backup, cross‑platform governance and observability to control AI workloads, which are GPU‑heavy, memory‑intensive and unpredictable. The shift offers CIOs a chance to rebuild their virtualization strategy from scratch.
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