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Insurance Claims Provider Migrates from VMware to OpenShift Virtualization, Avoiding 400% License Price Increase

INDUSTRY

Insurance

Facing a 400% VMware license increase after Broadcom’s acquisition, the client needed a cost-effective virtualization alternative without sacrificing reliability or scalability. Arctiq delivered a production-ready OpenShift Virtualization environment that established a clear migration path for more than 350 virtual machines while building a foundation for future modernization.

 

Client Overview:

A medium-sized insurance claims processing organization operates with approximately 20 hosts and over 350 virtual machines in their VMware-based on-premises virtualization environment. With a crucial role in handling insurance claims, their IT infrastructure requires high reliability, scalability, and cost-efficiency to support their operations effectively.

The Challenge

The client faced a critical decision point with their virtualization strategy. Their existing VMware licensing was approaching renewal, but with Broadcom's acquisition of VMware, they were confronted with:

  • A staggering 400% price increase for license renewal

  • Transition to a subscription-based licensing model

  • Uncertainty about VMware/Broadcom's long-term roadmap and support quality

  • Concerns about future innovation under new ownership

The CloudOps Lead recognized these challenges as an opportunity to reevaluate their virtualization strategy and explore more cost-effective alternatives that would still provide enterprise-grade capabilities.

Our Solution

Arctiq proposed a comprehensive migration from VMware to Red Hat OpenShift Virtualization. This approach would:

  • Eliminate dependency on VMware/Broadcom

  • Provide a modern, container-based virtualization platform

  • Leverage the client's existing Pure Storage infrastructure

  • Deliver significant cost savings, especially for Red Hat Enterprise Linux workloads

  • Offer a pathway to future cloud-native application development

The engagement focused on a small-scale OpenShift deployment to validate the solution's viability before committing to full migration of their 350+ virtual machines by year-end.

Implementation Process

Phase 1: OpenShift Deployment Design & Architecture

  • Evaluated Red Hat OpenShift and Red Hat Enterprise Linux subscription options to determine the most cost-effective licensing model

  • Conducted thorough assessment of hardware and infrastructure requirements

  • Analyzed current capacity and developed capacity planning for OpenShift deployment

  • Created cluster sizing and growth plan aligned with business objectives

  • Assessed application requirements to establish metrics for environment scenarios

Phase 2: OpenShift Infrastructure Installation

  • Deployed a 3-node bare metal OpenShift 4.15 cluster with mixed control/worker nodes

  • Implemented core OpenShift infrastructure services for enterprise-grade reliability

  • Integrated Portworx storage solution to support RWX (ReadWriteMany) volumes for virtualized workloads

  • Enabled OpenShift virtualization capabilities to support VM workloads

  • Verified compatibility with the client's existing Pure Storage array (version 6.3/6.5)

Phase 3: Virtualization Workload Migration

  • Leveraged OpenShift MTV to migrate first phase of virtual machines from VMware

  • Demonstrated live migration capabilities of virtual machines within the cluster

  • Performed an upgrade to OpenShift 4.16 to showcase seamless upgrade processes

  • Conducted knowledge transfer sessions to build client team expertise

  • Developed documentation including best practices and operational guidance

Key Features

  • Modern container-based virtualization platform capable of supporting both traditional VMs and containers

  • Seamless migration path from VMware to OpenShift virtualization

  • Integration with existing Pure Storage infrastructure

  • Free Red Hat Enterprise Linux workload licensing when running on OpenShift

  • Built-in high availability and live migration capabilities

  • Scalable infrastructure that can grow with business needs

  • Path to modernization beyond pure virtualization

Tools Used

  • Red Hat OpenShift 4.15 and 4.16

  • Red Hat Enterprise Linux

  • OpenShift Virtualization

  • OpenShift MTV (Migration Toolkit for Virtualization)

  • Portworx storage for container-native persistent storage

  • Pure Storage integration

Results

The project successfully demonstrated that Red Hat OpenShift Virtualization could meet the client's virtualization needs while delivering substantial benefits:

  • Avoided the 400% price increase from VMware/Broadcom licensing

  • Established a clear migration path for all 350+ virtual machines

  • Reduced licensing costs for RHEL workloads running on OpenShift

  • Gained independence from VMware/Broadcom's uncertain roadmap

  • Improved operational capabilities with modern containerization tools

  • Built internal expertise through mentorship and knowledge transfer

  • Created foundation for future application modernization initiatives

With the project successfully completed, the client established a clear roadmap for migrating its virtualization environment to Red Hat OpenShift Virtualization, positioning the organization to avoid significant licensing costs while modernizing its infrastructure.