Not long ago, Broadcom completed its $69 billion acquisition of VMware, sending shockwaves through the global IT industry and making many companies consider VMware alternatives. This move particularly impacted small and mid-sized businesses (SMBs) across the U.S., operating their own infrastructure or private cloud.
Since then, VMware’s business model has changed. Broadcom has eliminated key product bundles, shifted to a yearly subscription-only model, and significantly raised licensing costs, especially for customers using vSphere, vSAN, or vCenter. The new pricing structure disproportionately affects SMBs who can’t absorb massive jumps in per-core or per-VM licensing fees, and who now face an uncertain future under a vendor that’s focused squarely on large enterprise accounts.
If you’re one of the thousands of U.S. businesses dealing with the VMware price increase and looking for VMware alternatives, you’re not out of options. Moving to an MSP-operated private cloud with open architecture is the best alternative for SMBs facing VMware challenges. It combines the performance and control of on-premises infrastructure with the flexibility and affordability of the cloud. CloudScale365’s cloud solution, built on open-source technologies like KVM and OpenNebula, eliminates vendor lock-in and unpredictable licensing fees while enabling full workload portability and long-term infrastructure freedom.
Why Private Cloud Operators Look for VMware Alternatives
The Broadcom-VMware transition has created serious challenges for smaller IT teams and companies managing their own virtual environments:
- Skyrocketing VMware License Fees – SMBs have seen up to 10x VMware cost increase, with many now forced into bundles they don’t need.
- Limited Support for Small Customers – Since Broadcom acquired VMware, limited support for small customers has become a serious concern. The company has shifted its strategy to prioritize larger enterprise accounts, phasing out many of the programs, products, and service tiers that previously catered to small and mid-sized businesses. As a result, SMBs are finding themselves with fewer support options, longer response times, and less access to personalized assistance. In many cases, long-standing VMware customers have been reassigned to indirect channels or forced into self-service models, making it more difficult to obtain timely assistance for critical issues. This lack of dedicated support adds operational risk and makes it even more difficult for smaller IT teams to manage increasingly complex environments.
- Uncertain Roadmap and Product Access – Popular products like VMware Cloud Foundation and vSphere Essentials have either been discontinued or undergone significant restructuring.
- Aggressive Lock-In Tactics – Subscription-based models and a lack of portability restrict your flexibility and inflate long-term costs.

The CloudScale365 Solution: Fully Managed Private Cloud, Built on Open Standards
At CloudScale365, we understand what SMBs need: a reliable, cost-effective, and vendor-neutral alternative that doesn’t sacrifice performance or control.
That’s why our fully managed IaaS solution goes far beyond just replacing VMware. It solves a range of challenges that growing businesses face every day. With IT teams stretched thin and skilled cloud talent increasingly hard to find and retain, outsourcing infrastructure management to an experienced MSP helps close the expertise gap.
Access to the Best Cloud Architects and Engineers
You get access to a dedicated team of cloud professionals who handle everything from patching and monitoring to backup, disaster recovery, and compliance, without needing to expand your internal staff.
Enterprise-grade Reliability
Our solution also delivers enterprise-grade reliability and built-in data protection, helping you meet security and uptime requirements without the need for costly tools or additional overhead. It’s the simplest way to modernize your infrastructure, stay secure, and focus your internal resources on what drives your business forward.
SLA-backed Up Cloud Solution
By partnering with an MSP like CloudScale365, you gain a stable, highly available infrastructure backed by guaranteed SLAs. Services such as disaster recovery, automated backups, and real-time monitoring are built in. No need to source and manage them separately or manage relationships with multiple vendors. This all-in-one approach ensures your systems are always protected, optimized, and ready to scale as your business grows.
Migrate from VMware to an Open-architecture Cloud
Our fully managed private cloud solution is built on two open technologies trusted by IT pros around the world:
– KVM (Kernel-based Virtual Machine) as hypervisor for high-performance virtualization
– OpenNebula as virtualization manager for flexible cloud orchestration
Together, they provide a powerful, open-architecture environment, free from licensing traps and vendor pressure.
What You Get:
- No per-core or per-VM fees
- Zero vendor lock-in
- Live VM migration from VMware (powered by Acronis)
- Transparent monthly pricing
- US-based 24/7 support
- Complete control + optional hands-on management

Why SMBs Choose CloudScale365 Managed IaaS Solution Over Engaging with VMware
Our solution is designed from the ground up to support the unique needs of small and mid-sized businesses that require security, compliance, and agility, without an enterprise price tag.
High-Performance Virtualization with KVM – Fast, efficient virtualization with enterprise-grade performance.
Cloud Orchestration with OpenNebula – Simple, powerful management of cloud workloads at scale.
Built-in Multi-Tenancy and Isolation – Secure, isolated environments for multiple users or teams.
Integrated Storage and Networking – Unified, high-speed storage and software-defined networking.
Compliance-Ready and Secure – Meets strict regulatory standards with built-in protections.
Hybrid and Edge Cloud Extensions – Extend workloads across hybrid or edge environments seamlessly.
Seamless VM Migration with Acronis Cyber Protect – Migrate VMware VMs without downtime or data loss.
Fully Managed Infrastructure – We handle everything, including updates, support, backups, and more.
Security and Compliance – Advanced threat protection and audit-ready compliance tools.
How VMware Migration Works (With No Downtime)
We understand that for SMBs, uptime is everything. That’s why we’ve built a seamless migration process using Acronis Cyber Protect to move your workloads live from VMware – without disruption.
Our process:
- Assess your VMware environment
- Plan a clean cutover with minimal risk
- Run parallel workloads during transition
- Cut over with zero downtime for end users
- Decommission VMware when ready
Our engineering team walks with you every step of the way.
Open Infrastructure as a VMware Replacement for Long-Term Flexibility
KVM and OpenNebula aren’t just open-source—they’re built for longevity and independence. Unlike proprietary solutions, they support hybrid and edge deployments, integrate with your existing DevOps tools, and give you full API access and extensibility.
With CloudScale365, you’re not just switching vendors.
You’re taking control. Make the move before your costs double again!
Thousands of SMBs are being priced out of VMware. Before you commit to another expensive renewal, talk to us about your options. We’ll show you how to modernize your infrastructure without breaking your budget—or losing control.