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VEXIT: Escape The Hypervisor Tax

In the old days, IT capabilities came with many hidden costs because everything was proprietary, and vendors got to charge you out the nose for their unique features. That’s why organizations like yours are considering a VEXIT to escape the costs of legacy virtualization.

Let me explain.

Once upon a time, you paid out the nose for proprietary hardware. But over the years, commoditization made costs more clear-cut.

At first, servers were a commodity.

Then switches and storage became commodities.

Then cloud drove out costs by building on commoditized hardware (server, storage, and networking.)

But cloud has a secret approach to controlling costs. Cloud also commoditized virtualization of all forms—hypervisors for compute, virtual network functions for networking, and software defined storage. Today, many organizations have a “cloud first” strategy because cloud gives them an inclusive package of capabilities because they are in effect renting hardware and integrated virtualization layers for a single price.

In a sense, nobody cares about the hardware or the virtualization stack. The value to the organization derives from the orchestration and management efficiencies that make the platform simple, agile, and transformative.

Compared with this approach, built on radical commoditization, most on-premise infrastructure is still stuck in the past. Organizations have spent years deeply buying into their proprietary virtualization environments on the idea that virtualization is a special and unique capability.

Ten years ago it was, but today, virtualization is commoditized.

So thousands of organizations are looking at their infrastructure and asking how their hypervisor, and the associated “bolt-on” tools for management, software-defined networking, etc. have gotten so costly. They’re wondering,

Where’s the value in paying add-on costs for virtual networking, a particular hypervisor, or other basic functionality in a world of bundled commodity virtualization? Why do I have 800 part numbers when a cloud can get me everything for one price?”

And the answer is that there isn’t any value in paying the add-on costs. You’re in effect paying a hypervisor tax, or an SDN tax, or a private cloud tax, when it’s secretly easy to get everything for one low price. It’s certainly easy in the public cloud, and increasingly, it’s easy with on-premise cloud as well.

We call the shift from old virtualization to new cloud VEXIT. It’s about understanding and escaping the hidden costs of legacy virtualization. Who wants to pay the hidden costs of virtualization everyone has accepted, but hated, for years?

Nobody.

Because, even if you want to have total control in your datacenter, there’s a cloud that can help.

Consider Cloudistics. We took a different approach. If you want on-premise, all-inclusive, fully virtualized infrastructure for a single price, without hidden taxes for essential features, Cloudistics is the platform for you.  Many of our customers had legacy virtualization, they considered legacy converged and hyper-converged solutions, as well as the public cloud. Cloudistics is better. We include compute, storage, networking and virtualization in our premium private cloud solution, allowing customers to digitally transform and just VEXIT—escaping the legacy hypervisor tax without complexity, compromise, or confusing costs.

When we talk to customers, they tell us consistent stories about their journey toward VEXIT; ditching the hidden costs of virtualization.

  1. Fear, Uncertainty & Doubt (FUD): Historically, it was a slow process for organizations to virtualize workloads. There was fear, uncertainty & doubt. Today, hypervisor technology is mature and widely Hypervisor companies may cast stones at each other, but when organizations complete proof of concepts they realize those companies are attempting to inject fear to prevent you from escaping their costly technology.
  2. Value: Organizations realize the value of the IT infrastructure isn’t in the hypervisor, it’s in the management and orchestration layer that enable rapid IT-service delivery, agility, and reduced operational costs. While their legacy hypervisor performed its job, it required costly experts. The hypervisor vendors really didn’t deliver value, instead, they provided poor support and pushed costly upgrades and add-on features.
  3. Functionality: Organizations were fearful that alternative hypervisors wouldn’t give them the same features and functionality. In reality, the hypervisor has become a commodity, the functionality organizations demand sits in the management and orchestration layer, the ability to automate service delivery, while, under the covers orchestrating the software-defined infrastructure to support the application.
  4. Expertise: Legacy hypervisors were simple, but to grow functionality organizations demanded, they become complex and required skilled costly expertise and created a vendor lock-in. Organizations always need a skilled workforce to innovate and drive improvements, but they realized the commodity hypervisor has now become a costly deterrent to innovation, growth and
  5. Cost: Instead of paying a single price, organizations had to pay separately for every capability. If they wanted software defined networking, their costs shot up. If they wanted data analytics, their cost shot up. An all-inclusive platform helps organizations save tremendously. They can re-invest funds on projects that drive value rather than fill a cost center. The days of confusing SKU lists and costly add-on software features are gone.


Cloudistics private cloud platform allows organizations to VEXIT, thereby escaping hidden virtualization taxes.  We combine true cloud capabilities in a all-inclusive, software-defined, composable architecture that providers organizations unmatched operational efficiencies legacy solutions like converged and hyper-converged can’t touch. With our solution, organizations like yours save tremendously and can re-invest in internal projects that drive value rather than fill a cost center. The days of confusing SKU lists and costly add-on software features are gone.

Additionally, organizations consider and ultimately choose Cloudistics based on these factors:

  1. Fastest Deployment: We allow organizations to deliver IT services fast and enable self-service when organization require it
  2. No Hardware Management: The hardware is a commodity, let the infrastructure run itself, focus on growing your business and driving value in your organization, not managing hardware.
  3. EarlyInsight Proactive Support & Maintenance: Experience award-winning support other solution providers can’t touch. Receive software and hypervisor updates without downtime in an automated manner.
  4. No Specialists Required: Stop worrying about the IT skills gap, adopt a platform that is designed to be controlled and managed by an IT Generalist.

Ready to VEXIT and escape the hypervisor tax? Learn more about what we can do for you, visit us at www.cloudistics.com/livedemo

Dan Mroz

VP of Worldwide Marketing

Over the past 20 years, Dan has had the opportunity to hold several diverse positions within the IT industry. Prior to joining Cloudistics, he was part of an incubation team at Lenovo, which launched new hyper-converged products. He developed channel and enablement strategies while contributing to marketing and messaging efforts. Prior to Lenovo, Dan held positions in sales and engineering at Dell-EMC. Dan was engineer of the year in 2012 and 2014.

Dan has held IT leadership and instructor positions at the Pennsylvania State University where he led technology strategy, instructional design, and numerous strategic projects.

Dan has always had an entrepreneurial spirit and co-founded a web development, hosting, and consulting company. He has led marketing, recruitment, and IT operations of multiple organizations in the healthcare, technology, and financial segments.

Dan earned two undergraduate degrees from the Pennsylvania College of Technology and his MBA from the New York Institute of Technology.

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