Migration from VMware to KVM: reliable transition without compromise

Challenge: licensing pressure following Broadcom's acquisition of VMware

For us, accepting the new pricing would have meant nearly a fourfold increase in licensing costs for the existing public cloud. Such an increase would have significantly affected our pricing model and the long-term sustainability of the services. Consequently, the risk of losing customers would have become a real threat. 

As we were in the final phase of establishing a new, high-performance data center, DC3 – Ljubljana North, during this period, we had all the necessary infrastructure and capacity to carry out a comprehensive replacement of the virtualization platform—without compromising reliability, performance, or service availability. 

Although I have personally always valued VMware as a reliable and technically refined virtualization solution—indeed, it was our first choice when establishing the cloud infrastructure—the new licensing policies confronted us with an unavoidable challenge. The financial analysis clearly showed that continuing with this technology is, for smaller providers—practically all of us in Slovenia—unsustainable in the long term.  

Strategy and first steps: seeking a long-term alternative

At the beginning of 2024, we made a strategic decision to look for an alternative to the existing virtualization platform. Despite a longstanding partnership with VMware and being among the first certified cloud service providers in Slovenia, we found that the new licensing structure means a disproportionate increase in costs and thus seriously jeopardizes the economic efficiency of our public cloud.

With a clear objective to maintain high availability, security, and performance while preserving cost competitiveness, we began actively exploring open-source and modern solutions that would enable further development of our services.

Analysis and evaluation of virtualization platforms

We launched an internal initiative involving our systems engineers, infrastructure architects, and operations team. The goal was to find a modern, stable, and long-term sustainable alternative that could handle the complexity of the existing system while enabling continued growth.

In real-world scenarios, we tested and compared more than 10 different virtualization platforms and public cloud management solutions. The solutions we analyzed in detail included:

• XCP-ng

• Microsoft Hyper-V

• Proxmox VE

• Nutanix AHV

• Citrix Hypervisor

• Scale Computing Platform

After a detailed technical and business analysis, we chose a solution based on KVM technology and started building our new public cloud around it—flexible, scalable, and fully under our control.

Implementation and migration plan: uncompromising reliability and continuity

Together with our technical team, we developed a detailed and carefully coordinated migration plan that covered the deployment of new infrastructure as well as the gradual relocation of existing services. The key objective was to ensure a seamless transition without outages while maintaining security and performance.

The plan also included migrating all data from the old data center, DC2 – Ljubljana South, to the new, modern data center, DC3 – Ljubljana North. We paid particular attention to minimizing risks and ensuring high availability for all our customers.

One of the key factors in our success was open and proactive communication. We presented to customers in detail, both the migration plan and the long-term vision for the development of our cloud platform. With flexibility and responsiveness, we provided support throughout the entire process, which significantly reduced operational risks and increased user satisfaction.

In addition, we successfully completed the entire migration within the strictly defined timelines imposed by Broadcom's termination of licenses. In doing so, we ensured uninterrupted business continuity and maintained the reliability of our services at all times.

Outcome and outlook: technological agility and scalability

We successfully completed the migration to KVM technology. This significantly reduced licensing costs while maintaining or even improving the level of service our customers expect. Moving to an open-source platform has opened the door to greater technological flexibility and agility, a key factor for rapid adaptation to dynamic market demands.

Going forward, we plan to upgrade our private cloud by implementing the OpenStack platform, which will enable fully automated management and even greater self-service for our customers. We will also broaden our portfolio by introducing virtual data centers, which will enable our customers to access even more tailored, secure, and scalable cloud solutions.

With this step, we have further strengthened our position as a public cloud provider that combines leading technology, reliability, and cost efficiency, laying the foundations for sustainable growth and the digital transformation of the future.