The virtualization landscape is undergoing a big shift. Since Broadcom's acquisition of VMware in late 2023, organizations across industries have been struggling with sweeping changes to VMware's licensing, pricing, and product strategy. And that’s not all, for organizations who heavily rely on an on-premises infrastructure with Windows Server, Microsoft has increased Datacenter Edition licensing 10-20% over previous editions.
For many, this has become a wake-up call, and an opportunity to reassess their virtualization strategy.
At Altanora, we support a range of virtualization platforms, including VMware and Microsoft Hyper-V, but for customers running Citrix environments, we propose bare metal servers running the Citrix Hypervisor now called Citrix XenServer that has emerged as a compelling alternative worth serious consideration.
Real-World Cost Savings: Customer Scenarios
1. VMware’s New Licensing Model: A Costly Commitment
Broadcom’s overhaul of VMware’s licensing model has introduced several pain points for customers:
- Minimum Core Requirements: A jump from 16 to 72-core minimums for vSphere Standard means many organizations are paying for capacity they don’t need.
- Late Renewal Penalties: A 20% surcharge applies if you miss your renewal window.
These changes have led to cost increases of 150% to over 1,000% for some organizations.
2. Microsoft’s Windows Server 2025 Datacenter Edition: SMB organizations are reconsidering.
For organizations looking to continue hosting their on-premises Windows infrastructure, think again:
- Prepare for high licensing costs in 2025 Datacenter edition priced at $6,771 for 16-core licenses, that’s a 10-20% increase from previous versions.
- Introducing a pay-as-you-go model that unfortunately does not fit everyone, especially SMBs, since it requires Azure and its associated costs.
- Keeping your Windows infrastructure up to date is becoming more demanding. OS and security patches now require more frequent updates and reboots, increasing the operational burden on internal IT teams.
3. Citrix XenServer: A Proven, Cost-Effective Alternative
Citrix XenServer offers a robust, enterprise-grade virtualization platform with a transparent and predictable licensing model. Key benefits include:
- It’s FREE with your Citrix subscription: XenServer Premium Edition is now available on all three Citrix offerings: Citrix Private Cloud, Universal Hybrid Multi-Cloud and Platform License.
- Lower TCO: Reduced infrastructure and operational costs compared to VMware.
- Strong ecosystem: Seamless integration with Citrix DaaS, VDI, and hybrid cloud solutions.
4. Migration Made Easy with Conversion Manager 8.5.0
Citrix has made it easier than ever to migrate from VMware to XenServer. The latest release of Conversion Manager 8.5.0 simplifies the process with:
- Bulk VM conversion from VMware to XenServer.
- Intuitive UI for managing and monitoring migrations.
- Support for modern vSphere versions and enhanced error handling.
You can read more about this powerful tool in Citrix’s official blog post.
5. Altanora your Trusted Partner for Citrix Virtualization
At Altanora, we specialize in helping organizations migrate and manage Citrix environments on XenServer transition from VMware to Citrix XenServer with minimal disruption and maximum value. Our services include:
- End-to-end migration support using industry-best tools and practices with no to minimal downtime.
- 24/7 Managed infrastructure designed to minimize operational risk for organizations that prefer to avoid introducing a new hypervisor or lack the in-house expertise to manage it.
- Ongoing optimization and support to ensure performance, security, and scalability.
By partnering with Altanora, you gain a team of experts dedicated to lowering your virtualization costs while enhancing your infrastructure’s agility and reliability.
6. Future-Proof Your Virtualization Strategy
With VMware’s and Microsoft’s roadmap geared to the enterprises, many SMBs and mid-market organizations are finding themselves priced out or deprioritized. Citrix XenServer, on the other hand, continues to focus on accessibility, performance, and innovation for a broad range of customers.
Get Started: Don’t Wait to Reevaluate
The virtualization market is evolving quickly. If you’re concerned about rising costs, inflexible licensing, or infrastructure overhead, now is the time to explore alternatives. Citrix XenServer, backed by Altanora’s expert services, offers a compelling, cost-effective, and enterprise-ready solution supported by tools that make migration easier than ever.