HPE offers free VM Essentials for VMware switchers

HPE has introduced a migration assistance program targeting customers looking to transition away from VMware, following significant licensing cost increases and program changes under Broadcom’s ownership. The initiative offers a year of free licenses for HPE’s VM Essentials product, along with $1 Zerto data protection licenses to facilitate migrations, aiming to reduce the financial burden of operating dual virtualization platforms during the transition period.

The program was announced at HPE’s Partner Growth Summit in Las Vegas, where executives framed it as a way to help channel partners mitigate the "double-bubble" cost problem—where customers incur expenses for both old and new platforms simultaneously. While HPE did not explicitly name VMware in its public statements, the timing and context strongly suggest the offer is designed to attract VMware users facing steep price hikes and discontinued partner programs.

What HPE announced

HPE’s program includes two key components for customers: a 12-month license waiver for VM Essentials and deeply discounted Zerto licenses to support data migration. For partners, HPE is offering VM Essentials software licenses free of charge for three years, with partners only responsible for support costs. This offer applies to the 600 partners who achieve Private Cloud with Virtualization competency by the end of the year.

Additionally, HPE is expanding its channel-only model to include HPE Private Cloud PC3000, HPE SimpliVity PC1000, and HPE Zerto software starting in July. This move follows the success of selling Morpheus VM Essentials exclusively through partners. The company also revealed plans to unify its HPE and Juniper Networks partner programs under the Partner Ready Vantage umbrella, effective November 1. The unified program aims to simplify engagement, align incentives, and provide a consistent structure for partners offering services across networking, cloud, and AI.

Why the timing matters

The program arrives as VMware customers face growing pressure to explore alternatives. A recent survey found that half of VMware users plan to reduce their reliance on the company’s products by 2028. HPE’s offer directly addresses the financial and operational challenges of migration, particularly the risk of overlapping costs during the transition. By providing free licenses and migration tools, HPE is positioning itself as a lower-cost, integrated alternative for enterprises and service providers alike.

For partners, the extended incentives and simplified program structure could ease the adoption of HPE’s virtualization and private cloud solutions. The focus on channel-only distribution suggests HPE is prioritizing partner-led sales to scale its reach, particularly among cloud service providers looking to differentiate their offerings with HPE’s CloudOps Software and partner program support.

What to watch

The success of HPE’s program will likely depend on how quickly customers and partners adopt VM Essentials as a viable alternative to VMware. While the financial incentives are significant, the long-term viability of the platform will hinge on its performance, integration capabilities, and the broader ecosystem support. Competitors like Nutanix and Red Hat may also respond with their own migration incentives, potentially intensifying the battle for VMware’s displaced customer base.

For now, HPE’s offer provides a clear path for enterprises and service providers seeking to reduce virtualization costs without sacrificing enterprise-grade features. The coming months will reveal whether the program drives meaningful adoption or if customers remain hesitant to abandon VMware’s established ecosystem.