The world of enterprise IT is in the midst of a once-in-a-generation shakeup, and Malaysia is at the heart of this transformation. For years, VMware has been the default choice for server virtualization, the bedrock of private clouds in countless organizations. However, following its acquisition by Broadcom back in 2023, the landscape has been irrevocably altered. Abrupt shifts in licensing, the termination of perpetual licenses, and significant price hikes have sent shockwaves through the industry, forcing CIOs (Chief Information Security Officer) and IT leaders across Malaysia to ask a critical question: What’s next for our virtualization strategy?
Image retrieved from: https://www.techzine.eu/news/infrastructure/106309/will-broadcoms-acquisition-of-vmware-go-through/
This disruption isn’t just a challenge; it’s a catalyst. It has triggered a market-wide re-evaluation, accelerating new trends and bringing viable, powerful alternatives into the spotlight. Here are the latest trends shaping the future of virtualization in Malaysia and the top VMware alternatives that enterprises are actively considering in 2025.
The blog post “Broadcom Completes Acquisition of VMware ”, published on November 25, 2024, outlines how Broadcom completed its acquisition of VMware in November 2023, estimated around $61 billion. The article discusses customer reactions, concerns over future pricing and services, and what the broader tech ecosystem might expect moving forward
The Great Virtualization Reset
Image retrieved from: VMware alternative vendors see 2025 as year to make a mark | TechTarget
The primary driver for change in 2025 is a strategic move away from single-vendor dependency. The sudden and drastic changes imposed by Broadcom have highlighted the risks of vendor lock-in, prompting organizations to prioritize flexibility and choice. This has led to a wave of “vendor diversification,” where businesses are not just looking for a cheaper replacement but are building a more resilient, multi-vendor or open-source strategy for the long term.
Local IT solution providers in Malaysia are now actively marketing “VMware replacement solutions,” signaling a clear market demand for this transition. The conversation has shifted from a simple license renewal to a strategic decision about the future of IT infrastructure.
Perhaps the most significant trend is the rapid maturation and adoption of open-source virtualization platforms in enterprise environments. Once considered the domain of homelabs and small businesses, platforms like Proxmox VE are now being recognized as powerful, feature-rich, and cost-effective alternatives for serious production workloads.
Proxmox VE is leading this charge. As a completely free and open-source platform, it eliminates licensing costs, offering an immediate and compelling TCO advantage. Key features that make it enterprise-ready include:
- Integrated KVM and LXC: It supports both full virtual machines (for Windows and Linux) and lightweight Linux Containers on the same platform, offering immense flexibility for both legacy and modern applications.
- Built-in Enterprise Features: High-availability clustering, live migration, software-defined storage with Ceph, and integrated backup solutions are included out-of-the-box at no extra cost.
- Local Support in Malaysia: The presence of official resellers like Digital Pulse provides Malaysian enterprises with access to professional, local support subscriptions, bridging the gap between open-source freedom and enterprise reliability.
Many organizations are using this moment to modernize their entire infrastructure stack, not just the hypervisor. Hyperconverged Infrastructure (HCI) integrates compute, storage, and virtualization into a single, simplified platform.
Nutanix AHV is a prominent player in this space. It offers a compelling alternative by bundling its native, KVM-based hypervisor (AHV) with its HCI software. This approach simplifies management and can lead to significant cost savings by eliminating separate VMware licensing fees. With a strong focus on a “single pane of glass” management through its Prism interface, Nutanix is attracting businesses looking to reduce operational complexity. The company is seeing strong growth, fueled by customers looking for VMware alternatives, and has a proven track record in the region with customers like Tranglo and Kerry Express benefiting from its scalability and simplified management.
For businesses heavily invested in the Microsoft ecosystem, Hyper-V has re-emerged as a pragmatic and powerful alternative. Since Hyper-V is included as a feature within Windows Server, there are no separate hypervisor licensing fees, presenting a significant cost advantage.
Windows Server 2025 continues to build on Hyper-V’s enterprise-grade capabilities, including live migration, disaster recovery, and robust security features. For organizations already licensing Windows Server Datacenter edition, the ability to run unlimited virtual machines at no extra hypervisor cost makes the financial case for migrating from VMware extremely compelling.
The search for VMware alternatives in Malaysia is not just theoretical. Case studies are emerging of successful, large-scale migrations. One notable example is a leading Malaysian telecommunications company that migrated its entire environment from VMware to WikiBlox, a modern platform supporting both virtualization and containers. The project was completed in under 90 days and resulted in a 40% TCO reduction and a 25% performance improvement.
This real-world success story underscores a critical point: migrating away from a deeply embedded VMware environment is achievable and can deliver substantial financial and operational benefits.
The Broadcom Effect: Latest News and Industry Voices
According to Computer Weekly’s feature “VMware backup: Key decision points if you migrate away from VMware,” published on January 27, 2025, organizations considering a move off VMware must “re‑address their backup strategy” and explore agent‑based approaches, as agentless integration may not yet support many alternative hypervisors
The acquisition has been characterized as a “once-in-a-decade disruption to enterprise IT infrastructure, operations, and budget”. The changes have been swift and significant, creating a new reality for VMware’s global customer base of over 375,000 organizations.
On the Financial Impact: The most immediate impact has been financial. Scott Bickley, a principal research director at Info-Tech Research Group, stated, “Depending on the VMware products in use, the typical price increase ranges from 2x to 12x”. This aligns with Gartner’s reporting that enterprises braced for costs to at least double and, in some cases, spike fivefold.
Mike Cisek, VP analyst at Gartner, put the challenge for CIOs in stark terms: “When CIOs look at these renewals, they see $40,000 turn into $400,000, $1 million turn into $10 million, and they can no longer justify the cost based on the service it provides to the organization. It’s not that it’s a bad product, it’s just that it’s no longer viable financially”.
On Customer and Market Reaction: The changes triggered an immediate reaction. Broadcom President and CEO Hock Tan acknowledged in a blog post that the portfolio changes had “understandably created some unease among our customers and partners”. This unease was reflected in market data, with Gartner seeing inquiries about VMware options spike by 275% year-over-year in the first half of 2024.
The sentiment was captured bluntly by one Forrester analyst, who characterized Broadcom’s strategy as an effort to “divorce the customer,” saying, “They’ve made these wildly insane price increases in the name of saying either you pay us what we want or you’re out of here”.
On the Strategic Shift to Alternatives: This market flux is creating significant opportunities for competitors. Analyst Natalya Yezhkova of 451 Research noted, “This whole situation with Broadcom made companies start looking for what else they consider. It’s a great opportunity for vendors to take advantage”.
Technology analyst Steve McDowell emphasized that the decision is no longer purely technical. “They all smell blood in the water. There’s money to be had, and it’s not a license [but] a switching cost… it’s going to unfold quarter over quarter for the next four years”. This long-term evaluation is echoed by Gartner, which advises CIOs to “Perform an impartial and objective pilot to assess alternative solutions and determine potential impacts to total cost of ownership (TCO), compatibility, migration costs, product viability, and integrating with cloud-native infrastructure services”.
Key Virtualization Trends for 2025-2026 in Malaysia
The virtualization reset is unfolding within a uniquely dynamic Malaysian market. The government’s “Cloud First” policy, massive hyperscaler investments, and a national push towards a digital economy are shaping the key trends that will define enterprise infrastructure through 2025 and 2026.
1. Hybrid and Multi-Cloud Acceleration
The on-premises data center is no longer an island. Malaysia’s National Cloud Computing Policy (NCCP) is accelerating a strategic shift where private clouds are becoming seamlessly integrated components of a broader hybrid and multi-cloud strategy. As one industry expert notes, “hybrid cloud adoption will demand operational simplicity”. With global giants like Google, Microsoft, and AWS establishing local cloud regions, enterprises now have the tools to place workloads where they make the most sense, balancing performance, cost, and data sovereignty. This trend is driving demand for virtualization platforms that offer unified management and easy workload mobility between on-premises infrastructure and public clouds.
2. The Convergence of VMs and Containers
The future of applications is bimodal. While legacy applications continue to run reliably in Virtual Machines (VMs), new cloud-native development is increasingly based on containerization technologies like Docker and Kubernetes. This is creating a strong demand for platforms that can manage both VMs and containers from a single, unified interface. This convergence simplifies operations, reduces infrastructure silos, and provides a clear path for modernizing applications over time. The global container management market is projected to exceed $4.5 billion by 2028, and this trend is particularly relevant in Malaysia as businesses leverage new AI and data analytics services.
3. AI-Optimized Infrastructure
Artificial Intelligence is a dominant force, with the Malaysian government committed to propelling the nation as a leading AI hub in Southeast Asia. This is fundamentally changing infrastructure requirements. AI and machine learning workloads demand high-density computing, often with specialized hardware like GPUs. Virtualization platforms are evolving to meet this demand by offering advanced features like GPU passthrough and optimized scheduling for AI workloads. The ability to virtualize and efficiently manage these high-value resources is becoming a key differentiator for modern hypervisors.
4. Sustainability as a Core Pillar
Driven by both global ESG (Environmental, Social, and Governance) trends and national policy, sustainability is now a critical consideration in IT infrastructure planning. Virtualization has always offered green benefits by enabling server consolidation, which reduces hardware footprint, power consumption, and cooling costs. Looking ahead, data center operators and enterprises will increasingly favor virtualization solutions that provide advanced power management features and analytics to help them meet sustainability targets and align with initiatives like green-tax credits.
5. The Expansion of Desktop and Mobile Virtualization
The shift towards remote and hybrid work models continues to fuel the adoption of desktop virtualization (VDI) and Desktop-as-a-Service (DaaS). These technologies provide secure, centralized access to corporate applications and data from any device, which is essential for a flexible workforce. Concurrently, mobile virtualization is an emerging high-growth area, with its market projected to grow at a CAGR of 19%, driven by the need to run multiple operating systems on a single mobile device for both enterprise (BYOD security) and consumer applications.
Top 10 Virtualization Solution Providers in Malaysia
Navigating this evolving landscape requires not just the right technology, but the right local partner. These ten providers represent the leading system integrators, managed service providers, and consultants helping Malaysian enterprises implement and manage their virtualization and cloud strategies.
- IGS (igsb.com.my ) – A leading system integrator with decades of experience, offering a full spectrum of virtualization solutions, from server and network to cloud and desktop, partnering with global technology leaders.
- ITWin Technology Sdn Bhd (itwin.asia ) – A VMware Certified Partner and Microsoft specialist based in Johor and KL, focused on designing and deploying on-premises server virtualization, backup, and disaster recovery solutions.
- Enfrasys Consulting (enfrasys.com) – A highly-rated Cloud System Integration (SI) specialist with deep expertise in Microsoft Public, Private, and Hybrid Cloud Infrastructure (HCI) solutions, guiding companies in building custom cloud strategies.
- Systemizer Technic (systemizerinc.com) – An IT infrastructure provider specializing in hybrid cloud integration and enterprise services, partnering with Nutanix and others to deliver virtualization for High-Performance Computing (HPC) environments.
- Digital Pulse (digital-pulse.com.my) – The official authorized reseller for Proxmox Virtual Environment in Malaysia and the Southeast Asia region, providing local sales, subscriptions, and advanced support for the open-source platform.
- Sangfor Technologies (sangfor.com) – A global vendor with a major office in Kuala Lumpur, offering its own Hyper-Converged Infrastructure (HCI) platform as a direct, all-in-one VMware replacement and data center consolidation solution.
- TM ONE (tmone.com.my) – The enterprise and public sector arm of Telekom Malaysia, offering a comprehensive suite of sovereign cloud services via its Cloud Alpha platform, including public, private, and hybrid models with a focus on data residency.
- AIMS Data Centre (aims.com.my) – One of Malaysia’s most established data center operators, providing highly secure and interconnected infrastructure for enterprise-grade colocation, private cloud, and managed solutions.
- Strateq (strateqgroup.com) – A Malaysia-based IT solutions provider operating a hybrid cloud service that combines its private cloud with public platforms like AWS, specializing in solutions for highly regulated sectors like healthcare.
- Pentech Solution Sdn Bhd (pentechsolution.com.my) – A multi-vendor IT Managed Service Provider that specializes in assimilating technologies from partners like VMware and Nutanix into effective data center, networking, and security solutions.
Conclusion
The Broadcom-VMware acquisition has served as a powerful wake-up call. It has ended an era of single-vendor dominance and ushered in a new age of choice, flexibility, and strategic diversification. For Malaysian enterprises, 2025 and 2026 are pivotal years to embrace this change. By aligning with key trends like hybrid cloud, containerization, and AI, and by exploring powerful and cost-effective alternatives, businesses can build a modern, resilient infrastructure ready for the challenges and opportunities of tomorrow.
Reference Site & News
1. Best VMware Alternatives in 2025: Is It Time for a New Cloud Strategy? – TRG Datacenters, https://www.trgdatacenters.com/resource/best-vmware-alternatives-cloud-strategy/
2. CPG: How CIOs can execute a successful VMware exit – Cognizant, https://www.cognizant.com/us/en/insights/insights-blog/cpg-vmware-exit-and-transition-strategy
3. The CIO’s Guide to Broadcom’s Acquisition of VMware – NetApp, https://www.netapp.com/forms/vmware-acquisition-gartner-report/?spr=100006056860890&linkId=100000277254775
4. Best VMware Alternatives in 2025: Open Source and Enterprise Options Explored, https://cloudchipr.com/blog/vmware-alternatives
5. Best VMware alternatives in 2025 (and why it might be time to ditch VMs altogether) | Blog, https://northflank.com/blog/best-vmware-alternatives-in-2025
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8. AI Semiconductors, VMware Driving Broadcom To New Heights: CEO Hock Tan – CRN, https://www.crn.com/news/ai/2025/ai-semiconductor-vmware-driving-broadcom-to-new-heights-ceo-hock-tan
9. After Earnings, Is Broadcom Stock a Buy, a Sell, or Fairly Valued? | Morningstar, https://www.morningstar.com/stocks/after-earnings-is-broadcom-stock-buy-sell-or-fairly-valued-5
10. VMware’s first contentious year under Broadcom drives customers to weigh other options, https://www.ciodive.com/news/broadcom-vmware-acquistion-vcf-private-cloud/733800/
11. IT Analysts Discuss the Search for VMware Alternatives After Broadcom Acquisition, https://www.nutanix.com/theforecastbynutanix/podcasts/it-analysts-discuss-the-search-for-vmware-alternatives-after-broadcom-acquisition
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