A world without VMware is the bare metal dilemma. This service provider variant delivers dedicated physical servers—without virtualization layers—giving customers complete control over hardware resources, performance, and isolation, with on-demand availability for as long or as short as needed. These organizations have long struggled to balance performance and flexibility against cost control. Their customers demand the raw power of dedicated physical servers—but increasingly want the agility and convenience of virtual infrastructure layered on top. Many bare metal service providers (BMSP) relied on VMware for years to provide that virtualization layer, but times have changed.
State of the Bare Metal Service Provider
With escalating licensing costs, hardware lock-in, and support delays—especially after VMware’s acquisition by Broadcom—many BMSPs are rethinking their foundation. Customers themselves are exploring alternatives to VMware and frequently rely on their bare metal service providers for guidance and recommendations. Providers are therefore looking for a new platform not just to keep their own margins healthy and streamline operations but also to recommend a viable VMware alternative to their customers confidently. That’s where VergeOS comes in.
Bare Metal Challenge #1: Per-Core Licensing Penalizes Modern Hardware
BMSPs run high-density infrastructure to deliver better performance per watt and reduce space, power, and cooling costs. However, VMware’s per-core licensing structure punishes that efficiency. A dual-socket server with 64 cores? That’s a premium license fee—even if you use a fraction of those cores for each customer. The bare metal dilemma is whether they allow VMware licensing practices to adjust their hardware buying strategies or just pay the VMware tax.
VergeOS solves this with flat, per-server licensing. You pay the same regardless of how many cores you have. That means you can finally take full advantage of modern, high-core-count servers without being penalized at the software level. This is a differentiator for providers looking to do more with less hardware.
“With VMware, we constantly compromised on hardware to manage licensing costs. Now, with VergeOS, we buy the servers that make sense for our business, not for VMware’s licensing model.” — Jeff Hinkle, CEO of NETdepot
Bare Metal Challenge #2: Infrastructure Fragmentation Increases Complexity
VMware environments require separate components for virtualization (ESXi), storage (vSAN), and networking (NSX), each with its own licensing, support contracts, and management overhead. Add vCenter for management, and you’ll have a sprawling control plane to deliver basic services.
VergeOS unifies virtualization, storage, and networking into a single software platform. There is no need for external SANs, third-party firewalls, or expensive software-defined networking tools. It simplifies everything for BMSPs who want to reduce their management overhead and deploy faster.
“VergeOS allowed us to eliminate VMware licensing, Microsoft SQL Server licensing, and external storage arrays, dramatically simplifying operations.” — Kelley Allen, CEO, CCSI
Bare Metal Challenge #3: Hardware Compatibility Requirements Limit Flexibility
BMSPs pride themselves on being able to run a wide variety of server configurations to meet different performance tiers and customer needs. However, VMware’s restrictive Hardware Compatibility List (HCL) puts artificial limits on what you can deploy and what you can intermix. The bare metal dilemma is whether to risk repurposing older servers still functioning or having to continuously refresh with new hardware.
VergeOS runs on almost any x86 hardware. It’s designed to be lightweight and flexible, allowing you to repurpose existing hardware or test newer form factors without fear of breaking support or violating license terms. For providers looking to extend hardware lifecycles or reduce CapEx, that’s a huge win. Plus, with VergeIO’s advanced availability capabilities, BMSPs can run this older hardware configuration without risking customer outages.
Bare Metal Challenge #4: Support That Feels Like a Ticket Queue
In a 24/7 provider environment, waiting hours for a support engineer is not acceptable. Many BMSPs report increasing delays in VMware’s support responsiveness as their environment grows more complex. The bare metal dilemma is whether to build internal expertise, which is expensive, or find a product that is easier to support.
VergeIO delivers high-touch, fast-turnaround support. In customer reports, VergeIO support teams often respond to emails in under five minutes and spin up Zoom sessions within fifteen. That’s the partner BMSPs need when uptime and SLAs are on the line.
“VergeIO provides the best vendor technical support I’ve ever experienced in the industry. They helped us solve issues quickly and thoroughly, making our VMware transition seamless and secure.” — Yogi Yeager, President, BEAR Technologies
Bare Metal Challenge #5: Maintaining Isolation and Simplicity
BMSPs sometimes become Cloud Service Providers (CSPs), serving multiple customers on shared hardware. Without proper isolation, noisy neighbors, security breaches, or compliance violations are a risk. But many traditional stacks weren’t built with multi-tenant isolation in mind.
VergeOS supports isolated Virtual Data Centers (VDCs) for each customer—even on shared physical hosts. Each VDC has virtual networking, storage, compute, and management controls. This allows BMSPs to offer secure, flexible, and self-managed tenant environments without deploying new hardware for each customer.
Bare Metal Challenge #6: Automation and Observability are Essential
Modern BMSPs must operate at scale without scaling their staff. That means automation and observability aren’t optional—they’re essential.
VergeOS integrates seamlessly with industry-standard tools like Terraform, Ansible, and Grafana. BMSPs can use Terraform to deploy new tenant environments as code, Ansible to manage updates and patching workflows, and Grafana dashboards powered by ioMetrics to monitor real-time infrastructure health.
This allows providers to:
- Provision and scale customer workloads programmatically
- Standardize deployments across environments
- Reduce configuration drift and human error
- Visualize usage, forecast capacity, and detect anomalies early
Join VergeIO for a live webinar, during which we will demonstrate how our Terraform provider and ioMetrics can take your infrastructure to the next level.
Bare Metal Challenge #7: Ensuring a Fast, Reliable VMware Migration
Providers and their customers want minimal disruption and risk when transitioning from VMware.
VergeIO’s ioMigrate provides rapid, low-risk migrations. It connects directly to VMware via the backup API, enabling a near-instant initial migration and thorough testing under VergeOS. Incremental updates from the production VMware environment are continuously synced to VergeOS during testing. When testing is complete, the final update and cutover typically take less than one minute, minimizing customer downtime and disruption.
Bare Metal Challenge #8: Protecting Against Ransomware
Ransomware is a top concern for BMSPs because a single customer’s compromised environment can rapidly impact others. The bare metal dilemma is whether they build another stack of software to adequately protect their environment or look for infrastructure that can defend itself.
VergeOS mitigates ransomware risks through comprehensive isolation provided by VDCs, enabling each tenant to be completely isolated from the others. ioClone provides read-only snapshots that can be taken every few minutes without impacting performance. These snapshots are unlimited and don’t impact system resources. ioFortify complements this by offering early notifications of ransomware attacks, detecting suspicious activity within minutes, and enabling rapid recovery.
The Financial Impact: Real-World Savings
Providers making the switch to VergeOS consistently report significant cost savings:
- NETdepot: Approximately 80% reduction in infrastructure software costs due to VergeOS’s flat licensing model and dense server utilization.
- CCSI: Significant reductions in licensing and infrastructure costs, reducing per-desktop expenses dramatically by eliminating VMware, Microsoft SQL Server, and external storage licensing.
“We’ve lowered our cost per virtual desktop dramatically.” — Kelley Allen, CEO, CCSI
The Bottom Line
The bare metal dilemma is how to address their unique requirements when considering a VMware alternative while dealing with mounting pressure from customers who want the performance of metal and the convenience of virtualization without the complexity or cost. VMware once helped bridge that gap, but it’s no longer aligned with provider economics.
VergeOS is purpose-built to empower BMSPs. It delivers a unified, cost-efficient, and flexible platform that simplifies operations and unlocks profitability. Whether transitioning off VMware or designing a new infrastructure stack from scratch, VergeOS gives you the foundation to compete—and win—in a rapidly changing market.
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