Differences in Licensing Calculations of VMware and Hyper-V: Why Hyper-V is the Better Choice

In the IT world, virtualization technologies are crucial for utilizing resources efficiently and creating flexible IT infrastructures. Two of the leading providers in this field are VMware and Microsoft with Hyper-V. VMware recently made a significant change by switching its licensing model to a subscription model. In this blog post, we compare the licensing calculations of VMware and Hyper-V and show why Hyper-V is often the better choice.

VMware: From License Purchase to Subscription

Traditionally, VMware had offered its software licenses based on a one-time purchase. Companies could purchase a perpetual license and use the software indefinitely. This allowed them to record virtualization costs as capital expenditures (CapEx).

Switch to Subscription Model:

1. Subscription-Based Model: VMware has now switched to a subscription model where customers pay monthly or annual fees. This shifts the costs from CapEx to operating expenses (OpEx).
2. Flexibility and Scalability: The subscription model offers more flexibility. Companies can easily adjust their licensing to meet additional needs or reduce unused licenses, facilitating cost optimization.
3. Additional Services: Subscription plans often include additional services like support, updates, and cloud integrations, increasing the overall value for customers.
4. Cost Control: Through the subscription model, companies have better cost control, as the monthly or annual fees are easier to budget. However, ongoing costs can be higher over time compared to the one-time costs of a license purchase.

Hyper-V: Microsoft’s Licensing Model

Microsoft’s Hyper-V is a powerful virtualization platform that is closely integrated into the Windows Server ecosystem. Hyper-V licensing is usually achieved by purchasing Windows Server licenses.

Licensing for Hyper-V:

1. Licensing by Server Instance: Hyper-V licensing is based on licensing the Windows Server instance on which Hyper-V runs. This means that the costs for Hyper-V are included in the costs for Windows Server.
2. Editions of Windows Server: Windows Server is available in different editions (e.g., Standard, Datacenter) that offer different virtualization rights. The Datacenter edition allows unlimited virtualization, while the Standard edition is limited to two virtual instances per license.
3. No Additional Costs: There are no additional costs for the Hyper-V role if the Windows Server license has already been purchased. This often makes Hyper-V more cost-effective for companies that have already invested in the Microsoft ecosystem.

Advantages of Hyper-V over VMware

Cost Structure:

• Hyper-V: One-time costs for Windows Server licenses, with potentially lower long-term costs, especially for companies that already use Windows Server. No ongoing subscription fees mean predictable and stable costs.
• VMware: Ongoing subscription fees that provide flexibility but can result in higher total costs over time.

Integration and Use:

• Hyper-V: Seamless integration into the existing Windows Server ecosystem, making management and use easier. Ideal for companies already using Microsoft technologies.
• VMware: Additional complexity and costs for integration and management, especially in heterogeneous IT environments.

Performance and Scalability:

• Hyper-V: High performance and scalability through the various editions of Windows Server. The Datacenter edition allows unlimited virtualization without additional costs.
• VMware: Flexibility and scalability through the subscription model, but often associated with higher costs.

Additional Services:

• Hyper-V: No additional costs for the Hyper-V role, but comprehensive support and regular updates are included in the Windows Server license.
• VMware: Subscriptions often include additional services like support and updates, which can, however, incur additional costs.

Conclusion: Why Hyper-V is the Better Choice

For many companies, Hyper-V is a cost-effective and powerful solution. Integration into the Windows Server ecosystem, transparent licensing costs, and high scalability make Hyper-V the preferred choice, especially for companies already using Microsoft technologies. While VMware offers flexibility and additional services through the subscription model, the ongoing costs can be higher over time.

Every organization should carefully analyze its needs and budget to make the best choice for its virtualization strategy. For many companies, Hyper-V is the more attractive option due to its cost structure and integration.

If you are considering migrating to Hyper-V, contact our migration experts. In a free and non-binding initial consultation, we will be happy to advise you. If you would like to learn more about our offer for migrating from VMware to Hyper-V, click HERE to go to the relevant page.