Cloud Computing 2024: VMware's Shift in the Hyperscaler Landscape

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Cloud computing in 2024 has turned into the rock concert of IT trends—dazzling, expansive, and with a mixed band of performers vying for the spotlight. Hyperscalers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) are not just headlining this show—they are rewriting the rules. And leading the charge is their aggressive push deeper into hybrid-cloud and AI-driven workloads, fueled in part by Broadcom’s acquisition of VMware. Dive deeper with us as we break down what this means for Windows users, IT administrators, and enterprise minds navigating this evolving tech jungle.

Big Numbers and Growing Cloud Hype​

Let’s start with a dazzling stat: Gartner predicts public cloud spending will leap 19% in 2024, hitting a jaw-dropping $595 billion. That's enough money to make even the wealthiest moguls blush. But hold tight! By 2025, the market is forecasted to grow another whopping 21.5%. That’s not just inflation—that's an industry-wide disruption accelerating because of artificial intelligence (AI) and its voracious need for cloud computing.
According to Gartner analyst Sid Nag, AI technologies are not just making an impact—they’re the battering ram smashing down traditional IT barriers. Enterprises today demand distributed, hybrid, cloud-native, and multicloud environments, which serve as a template for integrating VMware’s products into hyperscaler environments such as Microsoft Azure and Google Cloud.
For anyone already knee-deep in Microsoft’s ecosystem—from Azure users to hybrid Windows deployments—this continual evolution means rethinking workloads, tools, and infrastructure strategies. The introduction of robust multicloud frameworks seems promising, but is it freedom, or do these tie enterprises tighter into the hyperscaler matrix?

Key Developments: VMware and Broadcom’s Grand Cloud Shuffle​

Broadcom’s acquisition of VMware marked one of the biggest IT shake-ups since the Beatles disbanded. The fallout has been significant, with VMware cloud strategies now evolving in unpredictable ways—and if you’re a Windows OS fan, this will specifically resonate based on your organization’s dependency on VMware’s virtual machines (VMs). Let’s break down the major moves:

1. Microsoft Azure Takes the Stage for VMware Migration

Microsoft has introduced a VMware-migration lifeboat with its improved Azure VMware Solutions (AVS) program. Businesses impacted by VMware’s recent licensing shake-ups under Broadcom can take note here: Microsoft’s migration plan includes licensing discounts and cost consistency for workloads transitioned to Azure. The Rapid Migration Plan, as it’s called, effectively opens the door for VMware loyalists to “park” their environments under Azure’s wing.
This is big news if your company uses hybrid models blending Azure and Windows Server ecosystems with VMware. The migration smooths resource scaling, enhances cloud-native compatibility, and reduces roadblocks—or at least we hope. There are still unanswered questions lurking about long-term financial incentives and if vendor lock-in risks outweigh the initial gains.

2. Broadcom’s Tightened Ties with Google Cloud

Meanwhile, Broadcom isn’t sleeping on its new VMware treasure chest. It’s opted to double down on Google Cloud, extending VMware workloads with integration into Google Vertex AI analytics. This collaboration not only amplifies VMware’s compatibility with Google’s AI offerings, but shifts workloads to operate more efficiently within Google's hosted ecosystem. However, Broadcom has strategically assumed distribution control of VMware Cloud on AWS, effectively eliminating AWS’s involvement in direct sales of the same.
From a user perspective, here's the key question: Does this enhance flexibility, or is this simply Broadcom picking Google as their new varsity quarterback over AWS? For now, if you're running cloud workloads on VMware and Google Cloud, these integrations (along with AI capabilities) could be a boost.

3. VMware License Portability: A Necessary Evil?

The incoming license portability plan has been a buzzword—but details are scarce. If the portability structure allows VMware licenses to seamlessly move between platforms (e.g., between Azure, AWS, or GCP), it could signal applaudable flexibility. However, enterprises should have their antennae scanning for hidden subscription-based pricing changes, which aren’t always openly advertised in these plans.

AI and Modern Cloud Use Cases​

Behind all this lies AI’s relentless cloud appetite. Machine learning models—from ChatGPT to enterprise-grade AI fitting unique business verticals—demand vast storage, quick compute cycles, and consistent uptime. Hyperscaler platforms like Microsoft Azure are succeeding because they allow developers to explore these paths without bottlenecks. Cloud-native frameworks, Kubernetes, and distributed computing are becoming tools of the trade.
Windows OS users should especially watch the deployment overlaps. AI-infused services, such as Azure AI, now integrate deeply into Windows environments through Power Platform, Azure ML workloads, and even mundane tools like Excel. As VMware bends deeper into Google and Microsoft’s ecosystems, hybrid capacity may improve—but it also means mission-critical data will increasingly depend on hyperscaler lifelines.

So...What Does This Mean for Regular Windows Users?​

With all of this industry jostling happening at a hyperscaler level, let’s bring it down to the individual Windows enthusiast, IT admin, or enterprise leader:
  • For Enterprise IT Admins: The rapid adoption of hybrid cloud architectures opens up vast strategic decisions. Does migrating VMware workloads to Azure or Google Cloud fit better into your existing Windows landscape—or does it introduce complexities?
  • For Small-to-Medium Businesses (SMBs): The benefits of seamless VMware-to-Azure integration could be compelling. But remember, hyperscalers have no problem tying you long-term. The deeper you go into Azure (or Google), the harder it will be to experiment outside their platforms later.
  • For Everyday Windows Users: While this may seem distant, the back-end transformations shaping broader multicloud strategies will trickle down to consumer-grade features—whether it's improved AI tools in Office 365 or flexible backups across hybrid storage.

Wrapping Up: Is VMware Playing Catch-up?​

Broadcom’s VMware strategy puts it in a tricky spot. While aligning with Google Cloud and nudges in Azure VMware Solutions seem encouraging, VMware’s traditional audience (which includes many Windows Server-heavy environments) will need convincing this isn’t a ploy for profitability over usability. The hyperscalers—Microsoft, AWS, and Google—fight amongst themselves for dominance, and VMware could either thrive in this environment or become an expensive middleman for migrating customers.
For Windows Forum readers, the clear takeaway is twofold: This fight pushes innovation, AI acceleration, and hybrid-cloud access—but it’s also a fight to eat up your wallet and trap loyalty. Ensure what you adopt fits your entire ecosystem before placing all your eggs in one hyperscaler’s basket!
What’s your take? If you’re managing servers, exploring Azure VMware benefits, or caught between AWS/Google platforms, drop your thoughts below.

Source: SDxCentral AWS, Microsoft, Google absorb VMware cloud impact in 2024