Cloud management platform (CMP) overview

A cloud management platform is a centralised hub, enabling IT teams to efficiently manage, monitor, automate and optimise public, private or hybrid cloud infrastructures. As cloud strategies become increasingly complex, companies turn to CMPs to bridge the gap between diverse platforms and unify cloud environments into a single, cohesive platform.  

Benefits of using a cloud management platform

A well-implemented CMP offers more than simplified cloud operations — it enhances efficiency, controls cloud costs, strengthens security and improves performance. Key benefits of CMPs include:

Cost optimisation

Reducing costs doesn’t mean cutting corners on performance. Instead, it’s about making data-driven decisions to maximise efficiency without sacrificing performance. A CMP provides actionable insights to decrease wasteful spending by assisting with the following:

• Identifies unused or underutilised resources to rebalance and consolidate workloads accordingly   
• Easily forecast and scale up or down as demand changes 

Performance enhancements

Real-time monitoring ensures workloads run efficiently, helping avoid bottlenecks and reduce downtime. 

Automate operations

Routine tasks such as provisioning, scaling and workload balancing can be automated, allowing IT teams to focus on strategic initiatives. 

Enhance scalability

CMPs are designed to grow and adapt to business demands, making them a future-proof solution for evolving cloud strategies. 

Strengthen security and compliance

Effective cloud management is pivotal in mitigating security risks and ensuring compliance in today’s threat landscape. CMPs provide built-in governance frameworks and automated policy enforcement to uphold compliance standards and regulations.  

• Centralises security controls by enforcing consistent policies across all cloud environments
• Simplifies compliance audits with automated reporting and governance, including GDPR, ISO 27001 or SOC2.  
• Provides real-time alerts with advanced monitoring tools to detect anomalies or potential breaches before they escalate.

Cloud technologies and infrastructure will continue to evolve, and so will their complexities. A cloud management platform is essential for businesses looking to gain visibility and streamline processes for future agility.  

1. Moving to a subscription-based model, discontinuing free and perpetual licenses 

Companies looking to purchase new, renew, upgrade or receive maintenance support on perpetual licenses must transition to a subscription model. Previously, perpetual licenses were one-time purchases that fell under most company’s CapEx budgets. Moving to a subscription model may require companies to shift these costs to OpEx. Broadcom announced that customers will continue to access their perpetual licenses and receive free zero-day patches for supported versions of vSphere. 

2. Condensing the VMware portfolio to two primary solutions with options for add-ons 

• VMware Cloud Foundation (VCF) 
• VMware vSphere Foundation (VVF) 

In addition to the main bundles, add-ons and access to vSphere Standard and vSphere Essentials Plus are available. 

3. Calculating pricing per core (with a minimum of 16 cores) 

With new product offerings comes new pricing. Previously, VMware required one CPU license for up to 32 physical cores. The pricing for VCF and VVF is calculated based on the number of cores per CPU, with a minimum of 16 cores. 

4. Rolling out changes to their partner program and framework 

In February 2024, VMware’s partner programs transitioned to Broadcom’s invitation-only Advantage Partner Program. As outlined in Broadcom’s Partner FAQ, they’ll begin rolling out invitations to VMware partners, starting with resellers. Invitation timelines may vary by partner route and market. 

Broadcom’s VP of Global Partner and Commercial Sales shared updates to the partner program, including a net margin model; streamlined pricing, systems and tools; predictable partner profitability and deal protection; and increased resourcing and support. 

Ways to mitigate VMware’s rising costs 

Every company’s next step forward will depend on various factors, including current environments, utilisation, compatibility, budget, resources, etc. Below are potential considerations and strategies to reduce subscription costs or make room in your IT budget for the increase. 

Assess your current environment and utilisation 

You’re overpaying for an additional license if your servers have less than 16 cores per CPU. That said, now’s the time to identify servers that are underutilised, idle or spare hosts since you’ll be paying for each core. Depending on your situation, you may be able to upgrade, downgrade or refresh hardware to get the most out of your budget. 

Find cost savings opportunities 

We know every IT department is challenged to do more with less and increasing VMware subscription costs have only added more pressure. Several opportunities for cost reduction include delaying hardware refresh cycles by extending the life of your equipment and switching to third-party Data Centre Maintenance to address support costs. 

Evaluate your storage strategy  

Customers can utilise the vSAN that’s included with their respective bundle. However, exceeding the allotted amount could overwhelm your budget and incur additional capacity charges. Read more about calculating cores for vSAN in Broadcom’s article. 

Exploring VMware alternatives 

There’s no telling what the future holds for VMware post-Broadcom acquisition. As VMware competitors begin to target the company’s significant customer base, IT decision-makers must weigh the cost, risk and time associated with considering an alternative solution. 

“A large-scale migration from VMware’s server virtualization platform will require multiple person-years of effort, considerable one-time project costs and business risk, and have an elapsed duration of 18 to 48 months.” — Gartner 

We’ve compiled a list of the top VMware alternatives and their advantages and disadvantages based on findings from Ace Cloud Hosting and reviews on Gartner Peer Insights. 

How Service Express can guide you through the changes 

We understand this change is widespread and impacts many — if not all — of our customers. Although the waters seem a tad murky, the good news is that you don’t have to navigate them alone. Ultimately, our priority is to help our customers get the most out of their budget without compromising performance. Our team of Infrastructure Sales Consultants is equipped to weigh your options and advise on the best strategy to maximise your VMware investment. 

Should I purchase new, recertified or refurbished data centre equipment? 

Before identifying what type of data centre hardware to purchase, start by understanding the level of support you’ll need and whether your top priority is flexibility or cost savings. OEMs often include a 1–3-year warranty with the purchase of new equipment. However, the service and level of support may be inconsistent or vary across manufacturers.  

When weighing your options for networking, core licences and storage, your best investment is to buy new for the OEM warranty and access to software and code updates. If you’re considering servers, your decision will be driven by budget constraints and how quickly you need the server up and running. 

Sometimes, companies are required to buy new data centre hardware to meet performance, compliance, capacity or power requirements. If you don’t need to refresh your equipment or aren’t interested in chasing the latest and greatest technology, leveraging recertified or refurbished hardware may be in your best interest. 

What’s the difference between recertified and refurbished data centre hardware? 

• Recertified hardware is typically overstock or unused returns. Also known as “factory recertified,” this equipment arrives in sealed OEM packaging and includes an OEM warranty for support after the sale. 
• Refurbished hardware is reconfigured, retested and updated according to our stringent testing standards. While there’s no OEM warranty included, we can bundle refurbished hardware with our Data Centre Maintenance. 

How much can I expect to save by purchasing recertified or refurbished equipment? 

You can typically save 30–70% over brand-new equipment, even when purchasing from a VAR. These savings reflect the impact of depreciation. Rapid technology changes, rather than equipment quality or performance, cause the decline in hardware value. 

What’s the difference between “warranty” and “support?” 

• Warranty is not a guaranteed SLA; it’s typically parts replacement during regular business hours. 
• Support is a fixed SLA with a higher level of service; an engineer will be dispatched and come onsite. 

What are the differences between buying from an OEM, VAR or TPM provider? 

• New or recertified: OEM  
• Refurbished: You can choose between a VAR or TPM provider.  

Some products can only be sold by an authorised VAR. As a TPM provider, it’s a conflict of interest, and we’ve chosen to maintain our neutrality. There are products we want to sell, but they don’t exist in the market or haven’t matured enough. 

What do OEMs and VARs say about purchasing from TPM providers? 

If the product isn’t new or recertified, they say it came from a used entity “grey market.” There isn’t a clear definition, but they suggest that parts from third-party providers are counterfeit or not made by the OEM. It’s refurbished hardware, so this only causes confusion and uncertainty. 

Where does Service Express get its data centre hardware? 

We use two primary sources: 

1. Our IT Asset Disposition (ITAD) Team procures equipment through customer trade-ins or unused returns from a customer lease. All hardware goes through our multiple-point inspection and testing process. 
2. We purchase equipment through our long-term hardware partners. Our trusted vendors are rigorously evaluated and vetted on an ongoing basis. 

What’s included with my hardware purchase from Service Express? Does your hardware come with a warranty? 

• Recertified: If equipment is sold with the OEM warranty, the customer contacts the OEM to handle it. 
• Refurbished: In most cases, the product comes bundled with Service Express’ Data Centre Maintenance. 

We have three standard maintenance SLAs, ranging from next business day response to 24/7×365 support. While professional services aren’t included, they’re available through an additional scope of work. 

What are my leasing options? 

While we don’t lease ourselves, we have leasing partners we recommend to customers and use for many projects. We’ve noticed that several companies have recently shifted to OpEx rather than CapEx spending. 

How do you ensure there are no security risks with refurbished equipment? 

Security is our number one concern, and we use our expertise to comply with and meet required security standards. We often exceed requirements to ensure everything is wiped, factory reset and in perfect working order. The equipment we sell won’t need intellectual property from the OEM to remain secure and safe. You’ll be able to get open-source security software, updates, etc. to protect your investment. 

What steps does Service Express take for quality assurance? 

Everything funnels through our Technical Centre, where systems are built, configured, tested, packaged and shipped from the same facility. We update equipment with the most current firmware and code, run it through the manufacturer’s steps and ensure all data is completely wiped. Our standard practise is to test everything in an environment similar to yours, and our disk testing tells us the life expectancy of the hardware. Since we may also provide you service after the sale, we prioritise quality for all parts and equipment. 

What kind of lead time should I expect? 

From the time of the purchase order, two-week delivery is the norm. Next-day delivery is not uncommon for urgent needs and is an option. Depending on the project size, it could take 8–10 weeks or more for larger projects. 

What does the sale process look like? 

It all starts with a conversation. We’ll set up a call to discuss the project, conduct a needs analysis to understand the goals and bring in additional technical resources as needed. Because we’re OEM agnostic, we take a more consultative approach to offer different and customized solutions. 

We prioritize building a relationship with you while providing the best solutions. We won’t pressure you on timelines or budgets. If we can’t provide a good fit, we’ll be honest and engage a partner or direct you elsewhere for a better alternative. 

What is total cost of ownership (TCO)? 

TCO is the comprehensive expense of a product or piece of equipment and its operating costs. Think of it as the bigger picture of a product’s value over time beyond the initial purchase price. 

Why is it important to calculate TCO? 

Businesses need to measure TCO to accurately estimate costs across a product’s entire life cycle, especially when considering upgrading or replacing new technology or equipment. With full visibility into your actual IT expenses, you can ensure you budget accordingly and receive the best value. 

While it depends on the asset and organisation, you can generally calculate TCO by adding the initial cost of a product and the cost to operate the product during its useful life. Although the equation seems simple, many factors can affect TCO estimates, including unpredictable costs from inflation, insurance and power usage. 

Businesses in all types of industries often forget about analysing TCO when gathering information and considering the next best step for their organisation. For the IT industry, Gartner defines TCO as “a comprehensive assessment of IT or other costs across enterprise boundaries over time.” This can include hardware, software, maintenance, training, communications, end-user expenses and losses due to downtime, damage and replacement costs. 

Below are several common examples and use cases our customers are frequently navigating: 

• Extending hardware life cycles and maintaining current equipment with the help of third-party maintenance (TPM) 
• Exploring new software as a service (SaaS) options 
• Undergoing a hardware refresh and purchasing new equipment  
• Transitioning to Infrastructure as a Service (IaaS) or hybrid cloud  

It’s rare to have just one option when it comes to IT infrastructure and hardware strategies. Each option has different advantages and disadvantages, and the best solution will vary for every business depending on its goals and priorities. 

When analysing TCO, it’s essential to compare every variable without forgetting critical tangible costs, even if they aren’t in that department’s budget allocation (e.g., IT to facilities). In addition, highlighting areas that are difficult to identify a cost.  

Considerations when calculating TCO 

To make fully informed business decisions and maximise the effectiveness of TCO methodologies across your entire business, consider the items below next time you set out on a procurement exercise: 

• What is the breakdown of CapEx and OpEx spending? 
• What period does finance depreciate assets? 
• How does this measure meet the current and/or future IT budget? 
• Facility costs 
• Rent and/or lease, facility maintenance, insurance, etc. 
• Energy costs 
• Heating, cooling and projects for price increases over the considered term 
• Human capital 
• Salary, benefits, training, labour costs, etc. 
• People costs, including projections for increases to salaried employees 
• Time saved/increased on each option 
• Supplier management: think service reviews, contract reviews, billing, etc. 
• Risk of current situation: what could the cost of inaction be? 
• Knock-on effect: will one change cause another unforeseen cost? 
• Scheduling time with different business unit leaders to understand the implications of cost and user experience 
• What is each option’s non-cost strengths and weaknesses? 

Examine your IT strategy 

When consulting with existing customers, partners and prospective customers, the result often exposes the benefit of a hybrid option, choosing the right strategy for the right workload. 

What are the key goals when planning an IT budget?

The Service Express solution

Certified and dedicated local engineers with technical expertise

Service Express offers several advantages to ensure support quality is the priority:

The results

User-friendly service, dedicated local engineers and the right parts at the right time

By moving their hardware support to a dedicated partner, the company saved $5 million in OpEx costs.
With Service Express providing data centre maintenance and consultative solutions, the IT department can stop following up on service with OEM and TPM engineers and focus on critical projects. The company’s IT leaders move forward confidently with infrastructure plans, knowing they can rely on Service Express as a trusted extension of their in-house team.

Scheduling Your Hardware Refresh

The timing and frequency of your hardware refresh cycle play a significant role in your infrastructure operations. You can manage the impact on your workload, risk factors and budget in several key ways.

Prepare For Change

You must steer through multiple steps for a successful refresh. Larger IT asset refresh projects require coordination from application, software, facilities and infrastructure teams. You need to ensure there is enough power and connectivity and a well-constructed plan to test the migration of applications. Upon completion, plan for the orderly removal or relocation of the decommissioned systems.

Target Coverage Gaps

Depending on the timing of your refresh, you may need to delay your hardware refresh and keep your existing hardware available for 6-12 months in case a rollback is required. During this transition, you can mitigate risk while preserving OpEx funds using a flexible maintenance agreement and the lower support costs offered by a TPM provider.

Identify Cost-Cutting Measures

Your hardware refresh project was on schedule, but now you’re facing unwelcome budget constraints, causing delays. Time to pivot! You can extend the life of your current equipment (saving CapEx money) and lower your post-warranty support costs (saving OpEx money) with third-party maintenance. As you wait for the IT budget to rebound, you can use your immediate savings towards other infrastructure priorities or staffing needs.

Rethink the 3-Year Refresh Cycle

Pausing and postponing your refresh cycle for one year or more maximises your investment. Using TPM for support provides even greater savings that you can use to help fund your next refresh.

Comparing Your Refresh Options

To upgrade data centre performance, speed and capacity, keep an open mind about how you can balance your performance and budget needs.

Don’t Postpone Your Refresh: Stick With The Status Quo

Regardless of your budget or performance realities, OEMs and VARs tend to recommend the newest tech. You can go ahead and purchase the latest and greatest version, knowing that although it’s a hefty CapEx investment, your research shows it’s the right decision for your data centre.

Consider A Recertified Option

There are cost benefits to using a recertified previous or current generation hardware solution. A current generation device is offered in the recertified market since products are in manufacturing for three-plus years. For example, a factory recertified Generation 10 can be purchased for less than a factory sealed Generation 10, with no change in performance or reliability. These alternative solutions cost 30-60% less than a brand new purchase.

Control CapEx & OpEx costs: Discover a Third-Party Option

You will find the most value in combining a recertified hardware option with third-party maintenance coverage. If this solution fits your data centre needs, you lower both your capital investment and your ongoing support costs substantially.