The technology landscape is shifting yet again, and this time, the ripple effects are being felt across enterprises using VMware’s NSX Advanced Load Balancer (formerly Avi Networks). With Broadcom’s $69 billion acquisition of VMware in late 2023, a series of sweeping changes are taking hold—changes that significantly impact customers and their bottom line.
Avi Networks: A Brief History
Avi Networks entered the Application Delivery Controller (ADC) market in 2012, offering a software-defined load-balancing solution optimized for multi-cloud environments. In 2019, VMware (then under Dell Technologies) acquired Avi Networks and rebranded it as NSX Advanced Load Balancer (ALB). This move positioned VMware as a key player in the ADC private cloud space and a credible competitor against established application delivery vendors.
Fast forward to 2023: Broadcom finalizes its acquisition of VMware and immediately begins restructuring operations. One of the most significant shifts is the transition to a subscription-only licensing model—a move that eliminates perpetual licenses and significantly raises costs for customers.
Major Licensing Changes Under Broadcom
With Broadcom’s acquisition, VMware licensing has been streamlined into two primary bundles:
- VMware vSphere Foundation (VVF)
- VMware Cloud Foundation (VCF)
The pricing model has also shifted dramatically. Previously, VMware used a per-socket pricing approach. Broadcom has moved to a per-core subscription pricing model, leading to steep cost increases.
Example Cost Impact
For a typical server with 2 sockets and 24 cores over a 3-year period:
- Old VMware Pricing: $16,684 per server
- New VMware Pricing: $58,320 per server
This represents great than 3X cost increase, making it difficult for enterprises to sustain their existing VMware investments.
How This Affects NSX ALB (Avi Networks) Customers
The elimination of perpetual licenses and the surge in pricing mean that many Avi Networks customers are actively looking for alternatives. Enterprises need a cost-effective, scalable, and feature-rich ADC solution that aligns with their operational and financial goals.
Radware GEL: A Competitive Alternative
For organizations seeking to move away from VMware NSX ALB, Radware’s Global Elastic Licensing (GEL) solution presents a compelling alternative. Here’s why:
- More Flexible Pricing: Unlike VMware's rigid per-core subscription, Radware GEL offers a usage-based licensing model that scales with business needs.
- Stronger Security Features: Radware provides comprehensive DDoS protection, a robust integrated Web Application and API Protection (WAAP) as well as a managed Cloud WAAP solution, and SSL inspection—capabilities that NSX ALB lacks.
- Better Performance: Higher SSL performance and lower cost footprint make Radware a more efficient choice for enterprises requiring advanced load balancing.
Final Thoughts
Broadcom’s VMware acquisition has reshaped the ADC and virtualization landscape, introducing significant cost burdens for enterprises. With higher prices, no perpetual licensing, and a limited feature set, VMware NSX ALB may no longer be the best option for many organizations. For enterprises looking for better security, cost-effective, flexible, and high-performance alternatives, Radware GEL stands out as a strong contender.
Want to learn more? Contact us today to explore how Radware GEL can help your business seamlessly navigate this transition.