Navigating HPE's Ambitious VMware Alternative Strategy

Hewlett Packard Enterprise recent announcements highlight a strategic shift towards positioning Morpheus VM Essentials (VME) as a compelling alternative to VMware, directly responding to market dynamics following Broadcom's VMware acquisition.

Previously, Morpheus Data consistently emphasized its role as a complementary solution—not a VMware replacement. However, under HPE's direction, Morpheus is now being positioned prominently as part of the "VM Reset" strategy, combined with HPE Private Cloud Business Edition. This bundled approach directly targets enterprises experiencing sticker shock from VMware's licensing model shifts post-Broadcom.

In real-world terms, HPE is promising substantial cost reductions—highlighted by one customer scenario dropping from US$461k to US$38k over three years, largely due to a shift from VMware’s per-core model to HPE’s per-socket licensing.

Insights from the Field

A recent Tech Field Day presentation by Marty Ma from HPE Aruba Networking provided clarity on how this strategy is evolving:

1. Unified Management: Morpheus VME provides a single pane of glass (via hvM Manager) to orchestrate hybrid environments, supporting VMware, Nutanix, Red Hat, Microsoft, AWS, and Azure. This unified orchestration significantly eases operational complexities for enterprises maintaining multi-hypervisor environments.
2. Advanced Networking Integration: Aruba’s CX switching portfolio, particularly its Smart Switching with integrated DPUs, enhances micro-segmentation and workload security, addressing gaps traditionally managed by VMware NSX. However, the presentation acknowledged ongoing complexities in replicating NSX’s compliance-driven automated workflows—an important operational consideration.
3. Flexible Deployment: Morpheus VME can operate as standalone software or within HPE's broader private cloud offerings under GreenLake. This versatility underscores HPE’s aggressive pursuit of enterprises reassessing their cloud and virtualization strategies.

Realities of Day-2 Operations

Yet, transitioning from VMware isn’t a straightforward spreadsheet exercise. Critical insights emerged around operational readiness:

• Monitoring and Observability: VME relies heavily on Prometheus rather than VMware’s native vRealize. Enterprises must rebuild observability and monitoring workflows from scratch.
• Networking and Compliance: Aruba switches offer robust segmentation but lack direct automation equivalency with NSX—highlighted by significant compliance back-out risks. Rebuilding automation hooks or manual management is inevitable.
• DR and Business Continuity: Disaster Recovery integration and orchestration between VMware and VME environments require meticulous re-engineering and extensive testing.

Keith’s Field Observations:

• Approximately 10% of enterprise workloads remain "VMware-only" due to specific feature dependencies, potentially negating some projected cost savings.
• A dual-stack VMware-VME operational model is practically required for 12–18 months, diluting initial cost benefits.
• AI and GPU workloads remain more mature on VMware, advising cautious migration timelines to ensure operational integrity.

Strategic Recommendations:

Enterprises exploring this "VM Reset" should:

• Rigorously pilot and validate Tier-2 workloads before addressing mission-critical systems.
• Engage compliance teams early in the transition planning, especially for enterprises heavily reliant on VMware NSX automation.
• Prepare for significant operational investments in staff retraining and infrastructure retooling.
• Engage their Architectural Review Board (ARB)

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The Bottom Line:

HPE’s ambitious positioning of Morpheus as a VMware alternative presents undeniable financial appeal. However, success requires strategic planning beyond licensing costs, deeply considering operational, compliance, and technology maturity factors.

For organizations ready to explore this migration strategically, structured evaluation frameworks and direct advisory support, like Keith On Call, offer essential guidance to navigate these complex transitions.

Is your organization evaluating HPE’s VM Reset strategy? Let’s discuss how you’re balancing immediate cost benefits against long-term operational readiness.