HPE offers free virtualization software to challenge VMware
Original: Year of free HPE software a “step in the correct direction” in VMware rivalry
Why This Matters
VMware customer migration accelerates as Broadcom's pricing changes drive enterprise vendors to offer competitive alternatives with aggressive promotions.
HPE announced free one-year licenses for VM Essentials virtualization software at HPE Discover event in Las Vegas, positioning it as a cheaper alternative to Broadcom's VMware amid customer dissatisfaction with recent price increases.
Hewlett Packard Enterprise (HPE) launched a promotion offering up to one year of free licenses for HPE Morpheus Software—VM Essentials, along with one year of HPE Zerto for $1 to support migration and zero-percent interest financing through HPE Financial Services. The move targets end users and resellers frustrated by Broadcom's VMware pricing changes since its acquisition of VMware. HPE's VM Essentials is marketed as a VMware alternative, featuring a hardware virtual machine hypervisor and unified management that allows users to manage VMware ESXi and HVM clusters from a single console with migration capabilities when ready. HPE recommends $600 per CPU socket annually for VM Essentials, compared to Broadcom's controversial shift to per-core licensing for vSphere. Jeremiah Jenson, VP of HPE's North American channel and partner ecosystem, stated the promotion could deliver up to 90 percent cost savings versus VMware while eliminating vendor lock-in. From March 1 to June 30, HPE previously offered free VM Essentials via rebate to customers purchasing AMD servers with one-year licenses. Unlike Broadcom's significantly reduced VMware reseller network, VM Essentials is distributed exclusively through channel partners, expanding partner opportunities. Multiple third-party surveys indicate substantial VMware customer interest in reducing or eliminating VMware over coming years, though migration concerns around time, cost, and dual-product expenses remain barriers.