Managed Service Providers (MSPs) and Value-Added Resellers (VARs) face challenging decisions today, particularly around the increasing complexity and cost of traditional virtualization platforms such as VMware. With recent market changes and rising licensing costs, many providers are actively seeking viable alternatives that simplify infrastructure management, reduce operational expenses, and enhance profitability.
However, when considering a move away from VMware, MSPs and VARs have an opportunity to rethink their overall infrastructure strategy rather than simply swapping one hypervisor for another. A particularly compelling alternative is to partner with a Cloud Service Provider (CSP) specializing in hosting and supporting MSPs and VARs, rather than continuing to manage complex, fragmented environments.
A Specialized CSP: More Than Just Infrastructure Hosting
Traditional CSPs typically offer a broad spectrum of infrastructure solutions, but those specifically supporting MSP and VAR business models bring critical advantages. These CSPs don’t just provide infrastructure—they offer an entire cloud infrastructure designed around the unique operational requirements of managed service providers. Such providers deeply understand the needs of MSPs, including multi-tenancy, resource segmentation, compliance requirements, and integrated data protection strategies.
By partnering with a CSP dedicated to MSP success, service providers can reduce their infrastructure burdens and free internal resources, ultimately focusing on value-driven customer engagements rather than routine infrastructure management.
Rethinking Virtualization: The Virtual Data Center Approach
One of the most beneficial aspects a specialized CSP armed with the right infrastructure software can deliver is a flexible virtualization architecture based on the concept of virtual data centers (VDCs). Instead of merely renting infrastructure, MSPs can leverage a software-defined virtualization platform that enables complete isolation and control. The CSP can deploy dedicated VDCs for each MSP partner, providing secure and efficient management of workloads, storage, and networking resources.
These MSPs can then further subdivide their allocated resources into additional VDCs for their end customers, delivering a truly nested multi-tenant environment. Such a layered approach to virtualization allows MSPs to provide customized environments tailored precisely to individual customers’ needs without the complexity typically involved in managing separate hardware stacks or independent virtualization platforms.
This nested approach also significantly enhances security. Each virtual data center acts as an isolated environment, preventing security breaches from spreading across tenant boundaries. If one customer’s environment experiences a breach, it remains contained within that specific virtual data center, effectively safeguarding other customers within the MSP and preventing cross-contamination to other MSP tenants. By automatically establishing these secure boundaries, the nested VDC structure delivers robust protection, allowing MSPs and their customers greater peace of mind.
Cost-Effective VMware Migration
A critical factor in efficiently migrating customers away from VMware is choosing an infrastructure software solution that integrates directly with VMware through its backup APIs. This integration enables the complete capture of customer data, virtual machine configurations, and network settings. MSPs can then encapsulate a customer’s entire on-premises VMware environment into a dedicated Virtual Data Center within the infrastructure software.
Once encapsulated, MSPs can seamlessly replicate this Virtual Data Center to their tenant space hosted at the specialized CSP. This approach ensures rapid, consistent, comprehensive transfers, significantly reducing downtime and migration risks. Furthermore, it simplifies migration testing, as the replicated environment at the CSP can be thoroughly validated and quickly updated before a complete cutover occurs. The result is a streamlined, secure, and predictable migration that reduces complexity, shortens project timelines, and dramatically lowers costs compared to traditional migration approaches.
A Platform Designed for MSP Growth
Choosing a specialized CSP with expertise in VMware alternatives and multi-tenant management positions MSPs and VARs to scale rapidly without the traditional infrastructure headaches. Such providers leverage powerful, software-defined virtualization platforms designed explicitly for high-density, multi-tenant deployments.
MSPs benefit from simplified licensing, reduced operational overhead, and streamlined scalability because these platforms typically integrate all essential features, including hypervisor capabilities, software-defined storage, built-in disaster recovery, and data protection.
Conclusion: More than a VMware Replacement—A Strategic Opportunity
For MSPs and VARs evaluating alternatives to VMware, now is the ideal time to reconsider their broader infrastructure strategy. Rather than simply replacing one virtualization platform with another, working with a specialized CSP offering virtual data center-based infrastructure presents a strategic opportunity. This approach dramatically simplifies infrastructure management, eases customer migrations, lowers operating costs, and ultimately enables MSPs to grow sustainably and profitably.
In short, an MSP-focused CSP provides a VMware alternative and a comprehensive solution to modern infrastructure challenges.
Why VergeIO and a Specialized CSP Make Sense
A great example of a genuine VMware alternative for MSPs is VergeIO. VergeOS consolidates virtualization, storage, and networking into a single software-defined platform, dramatically simplifying infrastructure management. By removing the complexity of multi-vendor environments and offering native multi-tenancy, integrated data protection, and high availability, VergeOS provides MSPs with the flexibility, scalability, and cost efficiency needed to modernize their service offerings and deliver better customer outcomes.
For MSPs looking for a cloud service provider partner, Livewire is an ideal choice. Livewire specializes in delivering private cloud infrastructure purpose-built for MSPs, using VergeOS to power their environment. Through Livewire, MSPs can access secure, isolated virtual data centers for their customers, enable disaster recovery services, and seamlessly migrate workloads away from traditional on-premises infrastructure, allowing them to expand their service models without the overhead of building and managing their cloud platforms.
George Crump is the Chief Marketing Officer at VergeIO, the leader in Ultraconverged Infrastructure. Prior to VergeIO he was Chief Product Strategist at StorONE. Before assuming roles with innovative technology vendors, George spent almost 14 years as the founder and lead analyst at Storage Switzerland. In his spare time, he continues to write blogs on Storage Switzerland to educate IT professionals on all aspects of data center storage. He is the primary contributor to Storage Switzerland and is a heavily sought-after public speaker. With over 30 years of experience designing storage solutions for data centers across the US, he has seen the birth of such technologies as RAID, NAS, SAN, Virtualization, Cloud, and Enterprise Flash. Before founding Storage Switzerland, he was CTO at one of the nation's largest storage integrators, where he was in charge of technology testing, integration, and product selection.
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