Reducing the Cost of Networking

How to Cut Costs Without Compromising Performance

Many organizations are searching for a VMware alternative because its license fees are increasing rapidly, but reducing the cost of networking should be included in the search. This transition from VMware presents the perfect opportunity to extend infrastructure savings beyond the hypervisor and into the network. However, the only way to reduce networking costs is to integrate software-defined networking (SDN) into the hypervisor, eliminating the need for additional software license fees and expensive, proprietary hardware and single-purpose appliances.

The Real Cost of Traditional Networking

For years, networking vendors have conditioned IT teams to believe high-performance networking requires expensive, proprietary hardware. Many organizations assume they must invest in:

• Proprietary switches from a single vendor to ensure compatibility
• Standalone firewalls to manage security policies
• Dedicated VPN appliances for remote access and multi-site connectivity
• Expensive SD-WAN solutions to optimize inter-site traffic

These expenses add up quickly. Each device introduces complexity beyond the hardware and software costs—requiring separate management interfaces, firmware updates, specialized knowledge, and ongoing support contracts.

Reducing Networking Costs Without Compromise

By leveraging software-defined networking (SDN), organizations can break free from vendor lock-in and dramatically reduce costs. Instead of investing in single-purpose appliances, IT teams can consolidate routing, security, and VPN functions into a unified SDN solution that runs on commodity hardware, but it must be included in the VMware alternative instead of an extra per-core or per-port licensing that continually increases costs as environments grow.

Use Commodity Switches Instead of Proprietary Hardware

One of the most significant contributors to networking costs is the requirement to buy switches from a single vendor. Proprietary switch ecosystems lock organizations into expensive licensing, limited compatibility, and inflated maintenance costs.

With integrated SDN, switches become simple forwarding devices, allowing IT teams to choose commodity, white-box switches instead of expensive, name-brand alternatives. This approach provides:

• Lower hardware costs by removing vendor premiums
• Freedom to mix and match switches from different manufacturers
• Scalability without vendor-imposed limitations

Eliminate Dedicated Networking Appliances

Single-purpose networking appliances introduce unnecessary costs and complexity. By consolidating network functions into a software-defined solution, IT teams can replace physical appliances while maintaining the same level of security and control.

• Replace dedicated routers with software-based dynamic routing (BGP, OSPF, and EIGRP).
• Eliminate standalone firewalls by using built-in stateful firewalling and network segmentation.
• Ditch VPN appliances with integrated IPSec and WireGuard VPN connectivity.

This consolidation reduces capital expenditures (CapEx) and ongoing operational expenses (OpEx) by removing hardware refresh cycles, maintenance contracts, and licensing fees.

Stop Paying for Per-Core and Per-Port Licensing

Traditional networking software is priced based on the number of cores, ports, or devices. The cost of SDN software eliminates the pricing advantages gained by using white box switches and dedicated network appliances. This pricing model punishes success by forcing customers to pay more as they scale.

The Path to Lower-Cost, High-Performance Networking

Organizations looking to reduce networking costs should evaluate how much is spent on proprietary hardware, single-purpose appliances, and restrictive licensing models. By shifting to a software-defined approach, IT teams can:

• Use commodity switches instead of vendor-locked networking hardware
• Eliminate dedicated routers, firewalls, and VPN appliances
• Consolidate network management into a single, unified platform

The key is to find a solution like VergeIO’s VergeFabric which is integrated into VergeOS at no additional charge. If your organization is exploring a VMware alternative, now is the time to rethink networking. Don’t just replace your hypervisor—replace expensive networking hardware too.

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