The “Broadcom Tax” Problem
The acquisition of VMware by Broadcom has triggered a seismic shift in the virtualization market. The forced transition from perpetual licenses to bundled subscriptions (VMware Cloud Foundation) has resulted in renewal quotes jumping by 300% to 1,500% for many enterprises.
This isn’t just a price hike; it’s a structural change that forces you to pay for a full stack (vSAN, NSX, Aria) even if you only need a hypervisor. For many CIOs, this “Broadcom Tax” has made staying on VMware fiscally irresponsible.
Nutanix has emerged as the primary lifeboat. With its mature AHV hypervisor, comparable enterprise feature set, and migration tools that automate the exit, it offers the most viable path to licensing freedom.
Go / No-Go Assessment
Is migrating to Nutanix right for your organization? Use this scorecard to decide.
| Criteria | Green Light (Go) | Red Light (Stop) |
|---|---|---|
| Licensing Pain | Renewal cost >50% increase | Locked into multi-year ELA |
| Hardware Status | Refresh due within 12 months | Brand new SAN/Blade investment |
| Team Skills | Generalist admins, open to change | Deep VCDX-level specialization only |
| Workload Type | Standard Enterprise Apps (SQL, Web) | Hard-coded dependencies on vSphere APIs |
| Network | Standard VLANs / Basic FW | Complex NSX-T Service Chains |
[!TIP] The “Sunk Cost” Trap: Don’t let recently purchased hardware stop you. Nutanix software can often run on your existing servers (HPE, Dell, Lenovo, Cisco), allowing you to repurpose hardware and only replace the storage layer.
When NOT to Migrate to Nutanix
Be honest: Nutanix isn’t always the right answer. Here are scenarios where you should pause or choose a different path:
1. You Just Signed a 3-Year VMware ELA
If you’re locked into a multi-year Enterprise License Agreement with Broadcom, the financial penalty for early exit may exceed the savings from Nutanix.
Better Move: Wait until renewal, then plan a strategic exit. Use this time to architect your Nutanix environment and train your team.
2. Your Plan is Full Public Cloud in 12 Months
If your strategy is to exit the data center entirely (100% AWS/Azure), migrating to Nutanix is an expensive detour.
Better Move: Go directly to VMware to Native Cloud. Nutanix is for organizations committed to on-prem or hybrid for 3+ years.
3. You Have Deep NSX-T Automation
If you’ve built complex NSX-T micro-segmentation with thousands of security groups and automated workflows, rebuilding this in Nutanix Flow is a 6-12 month project.
Better Move: Evaluate if the Broadcom price hike justifies the rebuild cost. For some heavily automated environments, staying on VMware (even at 2x cost) may be cheaper than re-platforming.
4. You Lack In-House Networking Expertise
Nutanix HCI is heavily network-dependent. If your team doesn’t understand Leaf-Spine fabrics, Jumbo Frames (MTU 9000), and LACP bonding, you will have outages.
Better Move: Hire a strong network architect before migrating, or choose a managed service partner who handles the infrastructure layer.
5. Your Workloads Are Highly vSphere API-Dependent
If you have custom automation that talks directly to vCenter’s proprietary APIs (e.g., vMotion orchestration, DRS automation), those scripts will break on Nutanix.
Better Move: Audit your automation. If the rebuild cost exceeds the licensing savings, staying on VMware might be justified.
Top 3 Failure Modes
35% of migrations face major delays. Click to see why.
1. The “Big Bang” Network Cutover
Failure: Trying to migrate hundreds of VMs and switch routing/firewall rules simultaneously. Consequence: Massive outages, inability to rollback, and weeks of troubleshooting connectivity issues. Prevention: Use a stretched L2 network to migrate subnet-by-subnet. Validate application connectivity in the new environment before cutting over the gateway.
2. Ignoring IOPS Requirements
Failure: Assuming HCI storage performance equals SAN performance 1:1 without sizing. Consequence: “Noisy neighbor” issues where one heavy database chokes the entire cluster. Prevention: Run a full performance assessment (e.g., RVTools + Nutanix Sizer) to ensure the target cluster has enough flash/NVMe capacity to handle peak IOPS.
3. Driver Mismatch (BSODs)
Failure: Forgetting to inject Nutanix VirtIO drivers into the guest OS before migration. Consequence: VMs fail to boot on AHV (Inaccessible Boot Device) or crash immediately. Prevention: Use Nutanix Move, which automatically handles driver injection and IP retention for supported OS versions.
5 Technical Traps
- NSX Lock-in: If you heavily use NSX-T for micro-segmentation, you cannot simply “migrate” policies. They must be re-architected in Nutanix Flow.
- Risk: Security gaps or connectivity blocks post-migration.
- Mitigation: Audit firewall rules and map them to Flow categories before moving a single VM.
- Proprietary APIs: Applications that talk directly to vCenter APIs (e.g., automation scripts, monitoring tools) will break.
- Risk: Loss of observability or automation failure.
- Mitigation: Inventory all tools connecting to vCenter. Replace with Prism APIs or cross-platform tools (Terraform, Ansible).
- Raw Device Mappings (RDMs): AHV supports Volume Groups, but the migration of RDMs requires specific handling.
- Risk: Data loss or corruption if treated as standard vDisks.
- Mitigation: Convert RDMs to vDisks where possible, or use Nutanix Volume Groups for clustering requirements.
- USB Passthrough: Hardware dongles (license keys) are notoriously difficult to pass through in HCI environments.
- Risk: Legacy apps failing to run due to missing license keys.
- Mitigation: Switch to network-based licensing or use network-attached USB hubs (AnywhereUSB).
- Jumbo Frames: MTU mismatches between the physical switch, CVM, and Guest VM are a classic headache.
- Risk: Intermittent network drops and poor throughput.
- Mitigation: Ensure end-to-end Jumbo Frame (MTU 9000) configuration on the physical leaf-spine network.
Migration Roadmap
graph TD
A[Phase 1: Discovery] --> B[Phase 2: Design & Sizing]
B --> C[Phase 3: Pilot Migration]
C --> D[Phase 4: Wave Migration]
D --> E[Phase 5: Validation & Decom]
subgraph "Phase 1: Discovery"
A1[RVTools Export]
A2[Dependency Mapping]
A3[Licensing Audit]
end
subgraph "Phase 2: Design"
B1[Nutanix Sizer]
B2[Network Fabric Design]
B3[Flow Policy Creation]
end
subgraph "Phase 4: Execution"
D1[Deploy Nutanix Move]
D2[Seed Data Sync]
D3[Cutover Window]
end
Phase Details
- Phase 1: Discovery (Weeks 1-4): Use tools like RVTools and Nutanix Collector to get a precise inventory. Map application dependencies to avoid breaking multi-tier apps.
- Phase 2: Design (Weeks 5-8): Size the Nutanix cluster correctly. Design the network fabric (Leaf-Spine is recommended) and define security policies in Flow.
- Phase 3: Pilot (Weeks 9-10): Migrate low-risk, non-critical workloads (Dev/Test) to validate the process, drivers, and performance.
- Phase 4: Waves (Weeks 11-20): Execute migration in pre-defined waves (e.g., by application group). Use Nutanix Move for automation.
- Phase 5: Decom (Week 21+): Verify performance, update documentation, and finally, decommission the old VMware hardware and terminate licenses.
Data Migration Specifics: How VMs Actually Move
Understanding the mechanics of VM migration is critical to planning your cutover windows and managing risk.
The Nutanix Move Process (Recommended)
Nutanix Move is the official migration tool. It automates the heavy lifting and is free for Nutanix customers.
How It Works:
- Seed Copy (Days 1-7): Move creates an initial snapshot of the VM’s disks and copies the data to the Nutanix cluster while the VM is still running on VMware. This can run in the background for days/weeks for large VMs.
- Incremental Sync (Ongoing): Move continuously syncs changed blocks from the source VM to the target. This keeps the migration “warm” and minimizes cutover downtime.
- Cutover Window (5-30 minutes): When you’re ready, you trigger the cutover. Move does a final sync, shuts down the source VM, injects Nutanix VirtIO drivers, and boots the VM on AHV. The VM gets the same IP address (if using the same VLAN).
Expected Downtime per VM:
- Small VMs (<100GB): 1-5 minutes
- Medium VMs (100GB-1TB): 5-15 minutes
- Large VMs (1TB-5TB): 15-30 minutes
- Massive VMs (5TB+): 30-60 minutes (plan these carefully)
Volume Capacity:
- Move can handle 50,000 VMs in a single migration project.
- Typical throughput: 10-20 VMs per hour (depending on network bandwidth and VM size).
Rollback Strategy: The Safety Net
Critical Rule: Do NOT delete the source VM until the migrated VM has been validated in production for 48-72 hours.
3-Phase Rollback Plan:
Phase 1: Pre-Cutover (Low Risk)
If something goes wrong during seed copy or testing:
- Simply delete the target VM on Nutanix.
- The source VM on VMware is still running.
- Rollback Time: Instant (nothing changed on production).
Phase 2: Post-Cutover (First 48 Hours)
If the VM boots but has issues (performance, connectivity, driver problems):
- Power off the VM on Nutanix.
- Power on the original VM on VMware.
- Update DNS/load balancers to point back to the old VM.
- Rollback Time: 15-30 minutes (depending on DNS TTL).
Phase 3: After Source Deletion (High Risk)
If you deleted the source VM and now need to go back:
- Restore the source VM from VMware backups (Veeam/Commvault).
- This is why you keep backups of the source for 7-14 days post-migration.
- Rollback Time: 2-8 hours (restore + validation).
Best Practice: Use a “Wave Migration” approach. Migrate 10-20 VMs, validate for a week, then proceed. Don’t migrate everything at once.
Testing & Validation Checklist
Before declaring a VM migration “successful,” validate:
Boot Test:
- ✅ VM powers on without errors
- ✅ Operating system loads (no BSOD/kernel panic)
- ✅ VirtIO drivers are installed and active
Network Test:
- ✅ VM has correct IP address
- ✅ Can ping gateway and DNS servers
- ✅ Application ports are accessible (test with
telnetornc)
Application Test:
- ✅ Application service starts (web server, database, etc.)
- ✅ End-to-end connectivity (can users access the app?)
- ✅ Performance is acceptable (response time, query latency)
Data Integrity:
- ✅ Database integrity checks (e.g.,
DBCC CHECKDBfor SQL Server) - ✅ File system verification (no corrupted files)
Backup Test:
- ✅ Veeam/backup solution can see the VM
- ✅ Test backup completes successfully
- ✅ Test restore to verify recoverability
Total Cost of Ownership: VMware vs. Nutanix
The following comparison highlights the typical 3-year TCO difference for a 500-VM environment.
| Cost Component | VMware (Post-Broadcom) | Nutanix Cloud Platform | Savings |
|---|---|---|---|
| Licensing | High (Per Core VCF Bundle) | Medium (Per Core/Capacity NCI) | 30-50% |
| Hypervisor | Paid (vSphere) | Included (AHV) | 100% |
| Hardware | SAN + Servers (3-Tier) | HCI Nodes (Commodity x86) | 20-30% |
| Power/Cooling | High (More Rack Units) | Low (Consolidated) | 40% |
| Management | Complex (Multiple Consoles) | Simple (Prism Central) | 25% (Labor) |
[!NOTE] Hidden Cost Warning: While Nutanix software is cheaper, don’t forget the Migration Cost. Professional services for a 500-VM migration can range from $150k to $300k. However, the ROI is usually achieved within 12-18 months due to the massive licensing savings.
Architecture: The Shift to HCI
Migrating to Nutanix means moving from a traditional 3-tier architecture (Servers + SAN Switch + Storage Array) to Hyperconverged Infrastructure (HCI).
graph TD
subgraph "Before: VMware 3-Tier"
A1[vCenter Server] --> A2[ESXi Host 1]
A1 --> A3[ESXi Host 2]
A1 --> A4[ESXi Host N]
A2 --> A5[FC Switch]
A3 --> A5
A4 --> A5
A5 --> A6[SAN Storage Array]
A7[NSX Manager] --> A2
A7 --> A3
A8[vSAN Cluster] -.Optional.- A2
end
subgraph "After: Nutanix HCI"
B1[Prism Central] --> B2[Nutanix Node 1<br/>AHV + CVM + Local SSD]
B1 --> B3[Nutanix Node 2<br/>AHV + CVM + Local SSD]
B1 --> B4[Nutanix Node N<br/>AHV + CVM + Local SSD]
B5[Nutanix Flow] -.Security.- B2
B5 -.Security.- B3
B2 <-.Distributed Storage Fabric.-> B3
B3 <-.Distributed Storage Fabric.-> B4
end
style A6 fill:#ffcccc,stroke:#cc0000,stroke-width:3px
style A5 fill:#ffcccc,stroke:#cc0000,stroke-width:2px
style B2 fill:#ccffcc,stroke:#00cc00,stroke-width:2px
style B3 fill:#ccffcc,stroke:#00cc00,stroke-width:2px
Key Transformation:
- Before (VMware 3-Tier): Compute and Storage are physically separate. Scaling requires buying big “bricks” of storage (SAN). Management is siloed (vCenter + SAN GUI + NSX).
- After (Nutanix HCI): Compute and Storage are converged into a single node. Storage is software-defined (Distributed Storage Fabric). Scaling is linear—just add a node. Single management pane (Prism).
The Mindset Shift:
- Old World: You managed LUNs, RAID Groups, and FC Zoning.
- New World: You manage Storage Containers and Resiliency Factors (RF2 = 2 copies, RF3 = 3 copies).
This architectural simplification is a key driver of the operational savings, but it requires your team to unlearn SAN habits.
When to Hire VMware to Nutanix Migration Services
You don’t need a partner for every migration. But here are scenarios where professional services pay for themselves:
1. The Broadcom Renewal Shock (Most Common)
Your VMware renewal quote just arrived. It’s 3x-15x what you paid last year. The CFO is demanding alternatives.
Trigger: “We got a $2M renewal quote for licenses that were $300K last year.”
Why Hire: You need a detailed TCO analysis comparing Broadcom’s new pricing vs. Nutanix NCI. Partners can model the 3-year cost including hardware, migration services, and training—giving you a defensible business case.
2. Hardware Refresh Alignment
Your VMware servers are 5+ years old. You’re facing a $3M capital expenditure (CapEx) to refresh the hardware.
Trigger: “Do we refresh the SAN, or is this the moment to rethink our architecture?”
Why Hire: This is the perfect migration window. Partners can help you size a Nutanix cluster that runs on commodity hardware (Dell, HPE, Lenovo), eliminating the SAN refresh entirely. The hardware savings often fund the migration project.
3. VDI/EUC Modernization
You’re running Citrix or VMware Horizon on vSphere. User experience is degraded (slow login times, desktop lag). VDI licensing costs are out of control.
Trigger: “Our VDI users are complaining, and our VMware + Citrix licensing is $1M/year.”
Why Hire: VDI on Nutanix is a proven pattern. Partners like XenTegra specialize in migrating VDI workloads to Nutanix with Frame or native Citrix integration, often halving the licensing cost.
4. Complex NSX-T Environment
You use NSX-T for micro-segmentation across hundreds of applications. You need to migrate these security policies to Nutanix Flow without creating gaps.
Trigger: “We have 5,000 NSX firewall rules. How do we move this to Nutanix without breaking everything?”
Why Hire: This is not a DIY project. Partners have automation tools to map NSX policies to Flow categories. Attempting this manually will result in security incidents or connectivity outages.
5. Multi-Site Global Deployment
You have VMware deployments in 10+ data centers across regions (EMEA, APAC, Americas). You need a consistent migration approach.
Trigger: “We need to migrate 5,000 VMs across 12 sites in 6 countries.”
Why Hire: Global deployments require project management rigor, standardized runbooks, and 24/7 support. Partners like Persistent Systems or Nutanix Services have the delivery scale to execute this.
6. Lack of Internal HCI Expertise
Your team is brilliant at VMware. But they’ve never touched Nutanix, and they don’t have time to learn while keeping production running.
Trigger: “We need to migrate in 6 months, but our team has zero Nutanix experience.”
Why Hire: Partners provide residency (embedding experts on-site for 3-6 months) to train your team while executing the migration. By the time they leave, your team owns the platform.
How to Choose a Migration Partner
Migrating a data center is open-heart surgery. You need a partner who knows both the old world (VMware) and the new world (Nutanix) intimately.
If you are a Global Enterprise: Choose Nutanix Services or Persistent Systems. You need the scale, the project management rigor, and the ability to handle thousands of VMs across regions.
If you are a Mid-Market Company (UK/EU): Virtually Cloud is a strong choice. They offer the personalized attention and agility that large GSIs often lack.
If you are heavily VDI (Citrix/Horizon): XenTegra is the specialist here. VDI migrations have unique performance sensitivities that generalist partners often miss.
Red flags when evaluating partners:
- “We’ll script it all manually”: Run away. Modern migrations should use Nutanix Move or similar automation tools. Manual rebuilds are error-prone and slow.
- No Network Expertise: If they don’t ask about your physical switch config (Leaf-Spine, MTU, LACP) in the first meeting, they aren’t qualified. HCI relies entirely on the network.
- Ignoring the Application: If they treat every VM as a black box without asking what runs inside, they will break your complex multi-tier applications.
[!TIP] Explore Alternatives: If you want to exit the data center entirely, consider VMware to Native Cloud (AWS/Azure) instead. For a hybrid approach, see our On-Premise to Hybrid Cloud guide. If cost is your primary driver, ensure you also implement Cloud Cost Optimization practices post-migration.
Post-Migration: The First 90 Days
The migration doesn’t end when the last VM boots on Nutanix. The first 90 days are critical for stabilization, optimization, and team enablement.
Month 1: Stabilization & Monitoring
Week 1-2: Hypervigilance
- Daily Health Checks: Review Prism Central alerts every morning. Look for disk failures, CVM issues, or network anomalies.
- Performance Baseline: Capture baseline metrics (VM CPU/RAM usage, storage IOPS, cluster latency). Use these to detect regressions.
- Support Hotline: Keep your migration partner on retainer for “break-fix” support. Expect 5-10 minor issues in the first two weeks (driver updates, MTU mismatches, etc.).
Week 3-4: Fine-Tuning
- Rightsizing: Review VM resource allocation. Many VMs were over-provisioned on VMware. Downsize RAM/CPU to reduce cluster load.
- Storage Optimization: Enable deduplication and compression (Nutanix does this automatically, but verify it’s active).
- Backup Validation: Run a full backup cycle and test a restore. Verify Veeam/Commvault integration is working correctly.
Key Metrics to Track:
- Cluster CPU Usage: Should be <70% under normal load.
- Storage Latency: Should be <1ms for flash-based storage.
- CVM Memory: Each CVM should have enough RAM (minimum 32GB for production clusters).
Month 2: Optimization & Training
Team Enablement:
- Prism Training: Send 2-3 admins to official Nutanix training (or bring an instructor on-site). Nutanix offers free online courses (Nutanix University).
- Runbook Updates: Document the new operational procedures (how to add a node, how to handle a disk failure, how to resize a VM).
- Automation: Start building automation with Prism APIs or Terraform. Don’t manage Nutanix through the GUI forever.
Cost Optimization:
- Decommission VMware Licenses: Now that migration is complete, cancel your VMware VCF/vSphere subscriptions. This is where the ROI hits.
- Hardware Decommission: If you have old SAN arrays or VMware servers, work with your data center to retire them (reclaim rack space, reduce power/cooling costs).
Advanced Features Exploration:
- Nutanix Flow: Start migrating your NSX firewall policies to Flow. This is often deferred during migration but should be tackled now.
- Data Protection: Explore Nutanix native replication for disaster recovery (cheaper than Veeam for some use cases).
Month 3: Operational Maturity
Capacity Planning:
- Growth Projections: Model your VM growth for the next 12 months. How many nodes will you need to add? Plan hardware purchases.
- N+1 Validation: Ensure your cluster can survive a node failure. Run a node failure simulation (shutdown a node, verify VMs stay up).
Incident Response:
- Failure Drills: Simulate a disk failure. Verify that Nutanix auto-rebuilds the data across remaining nodes.
- Disaster Recovery Test: If you have a second Nutanix cluster for DR, test a failover. Ensure RPO/RTO targets are met.
Knowledge Transfer Completion:
- Partner Handoff: If you had a migration partner on-site, this is when they transition out. Your team should be self-sufficient by Day 90.
- Documentation Audit: Ensure all runbooks, architecture diagrams, and escalation paths are documented in your wiki/Confluence.
Success Metrics (Day 90 Checklist):
- ✅ Zero critical incidents in the past 30 days
- ✅ Team can add a node without vendor assistance
- ✅ Backup/restore tested successfully
- ✅ VMware licenses fully terminated
- ✅ Cluster has 20-30% free capacity (headroom for growth)
FAQ
See the FAQ section at the top of the page for common questions about licensing, downtime, and technical compatibility.