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MSP

April 12, 2025 by George Crump

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.

Solving the The Bare Metal Dilemma

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.

Solving the The Bare Metal Dilemma

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.

Solving The Bare Metal Dilemma

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.

Solving The Bare Metal Dilemma

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.

ioMetrics is now available on GitHub Releases, complete with full documentation and setup instructions.

Ready to experience VergeOS firsthand?
Join our hands-on lab to see VergeOS in action and explore how easy your transition from VMware could be.
Sign up for the hands-on lab now.

Filed Under: MSP Tagged With: Alternative, Bare Metal Service, CSP, MSP, VMware

June 26, 2024 by George Crump

There are best practices that on-premises IT can learn from MSPs to streamline operations, improve responsiveness, and enhance efficiency simply by applying them. Managed Service Providers (MSPs) and Cloud Service Providers are adept at navigating a rapidly evolving technological landscape, under constant pressure to lower costs. They excel in efficiency, scalability, and security across numerous customers while focusing on cost management, data resiliency, and disaster recovery.

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Modernized infrastructure software is critical in enabling MSPs and On-Premises IT to meet these challenges. Modernized infrastructure software combines virtualization services delivered via a hypervisor, storage services, networking services, and cloud services like multi-tenancy.

Applying MSP/CSP Best Practices for Server Longevity

While MSPs/CSPs provide infrastructure to their customers on a subscription basis, they, in most cases, must pay for the hardware upfront. The longer they can extract useful life from that hardware, the better the return on its investment. Maximizing hardware longevity requires infrastructure software with low overhead that leaves more of the available compute resources for customer virtual machines (VMs). It also requires software abstracted from the hardware so that it does not have to remove support for specific hardware configurations as they age and the software advances. Nothing is more frustrating and wasteful than having hardware idle because the software no longer supports it.

In terms of resiliency, the infrastructure software must move beyond no single point of failure, to multiple points of redundancy. Aging hardware is more likely to fail than new hardware; also, maintaining aging hardware under a service contract is more expensive. The infrastructure software should deliver such high levels of redundancy and availability that older servers can run until they fail, and when they fail, there is minimal disruption to operations. This capability also requires the software to be able to mix servers within the infrastructure from different server brands, processor generations, and storage configurations.

On-Premises Server Longevity

On-premises IT can learn from MSPs and use a similar strategy. In these data centers, there are often more than enough computing resources, and the only reason for a server refresh is to maintain warranty coverage. Suppose the infrastructure software can enable these servers to operate safely and with support beyond their original warranty. In that case, the on-premises IT operator can meet the challenge of flat or shrinking IT budgets. If the infrastructure software can also support the intermixing of new and old servers on-premises, IT can gradually add servers to the infrastructure, finally ending the never-ending cycle of storage refreshes and mass migrations.

VergeOS Extends The Life of Servers

VergeOS is unique in infrastructure software. Instead of creating an “IT stack” of loosely coupled software applications, we tightly integrated all infrastructure services into a single code base. This code base includes all the services required for infrastructure, including virtualization services, storage services, networking services, and cloud services. The integration enables VergeOS to deliver near-bare-metal CPU performance, outperform dedicated all-flash arrays, and maximize network efficiency.

VergeOS is also highly portable. It runs on your existing hardware. Its unprecedented level of abstraction from the hardware means that within the same instance, it can support servers of different brands, CPU generations, and storage media types. Six-year-old servers can run alongside six-month-old servers with operational simplicity. As a result, IT can scale its environment from two nodes to over 200 servers within a single instance, and those nodes can come from various server manufacturers with different configurations.

on-premises IT can learn from MSPs

Lastly, VergeOS is resilient. High availability is built into the software. It protects from drive and server failures, and ioGuardian extends the resiliency to withstand multiple drive failures and near-catastrophic server outages. Its Virtual Data Center (VDC) tenant technology, popular with MSPs to isolate customers, also simplifies disaster recovery for on-premises IT because it encapsulates the entire data center as a single, consistent object that makes replication and recovery at a remote site work the first time every time.

Applying MSP/CSP Best Practices for Data Center Density

Successful MSPs/CSPs face the challenge of building highly compact data centers. On-premises IT can learn from MSPs because, like them, they are always looking for ways to reduce their physical footprint, which lowers power and cooling costs. MSPs must also maximize the number of VMs per physical host without compromising performance. This requires an infrastructure software solution that doesn’t burden CPU resources, protects against the disruptive effects of ‘noisy neighbors,’ and has a licensing model that doesn’t penalize customers for investing in robust, dense, quad-processor servers. No one in IT wants to have to explain why the software is twice the price of the hardware.

On-Premises IT Density

On-premises IT operators can benefit from a similar strategy. Imagine cutting the physical server count by two-thirds. While quad-processor servers are more expensive than dual-processor servers, you will need fewer of them, so there is a significant opportunity to reduce server acquisition costs, which will lower power and cooling costs. Using highly dense servers to decrease footprint generally has two problems. First, most infrastructure software solutions are licensed by the number of cores, often making the software more expensive than the server itself.

The second problem is managing potentially double the number of VMs per physical server and protecting against the “noisy neighbor” problem. Most infrastructure software solutions are complex and limited in their ability to isolate workloads.

VergeOS Delivers Affordable Density

VergeOS solves the licensing and noisy neighbor problems. First, it is licensed by the physical host, not by the number of processors or cores. Customers can use the most potent servers without fear of a software penalty. Second, it enables on-premises IT to allocate specific physical hardware resources to specific VDCs. Mission-critical or performance-sensitive workloads could be placed in a particular VDC, and resources could be hard allocated to those VDCs and made available exclusively to those workloads.

Applying MSP/CSP Best Practices for Security

Security is a, if not the, top concern of MSPs. If, for example, ransomware sneaks its way into their environment because of a careless customer, all the customers in their environment could potentially be impacted. They must ensure they invest in capabilities to detect an attack, minimize its impact, and rapidly recover customers in the event of a ransomware detonation. MSPs are looking to move away from the multiple-point solutions they are using to protect and recover from the various attack angles. Instead, they are looking for software that takes an infrastructure-wide approach that is resilient to an attack and can aid recovery.

On-Premises IT Security

On-premises IT can learn from MSPs’ attention to security details. Ransomware protection and recovery are priorities for all organizations, not just MSPs. While the scope of the ransomware event may not be as broad, on-premises IT doesn’t have the same time, budget, or personnel available as MSPs. In addition to the MSP requirements of limiting the attack surface, detection, and recovery, simplicity must be added to the on-premises IT requirements.

VergeOS Delivers Ransomware Resiliency

Storage Features Only

VergeOS takes an infrastructure-wide approach to ransomware protection and recovery. First, it uses multi-factor authentication for all login attempts. Second, when VergeOS is installed, it is installed read-only so that it cannot be modified during an attack. When a VDC is created, a read-write copy of VergeOS is placed inside the VDC. If the OS within the VDC is ever compromised, a quick refresh of the VDC loads a new copy of VergeOS. Each VDC is firewalled off from the others, so an attack within the VDC will not spread to other VDCs. Our alert subscription technology powers our ioFortify product, and you can build an alerting mechanism that allows you to receive near real-time notifications in the event of an attack. We’ve demonstrated this capability on multiple live webinars where we’ve detected an attack within five minutes. Finally, our snapshots are read-only and protected from attack.

All of these capabilities work together to enable you to limit the spread of an attack, detect an attack quickly, and recover to the last known good snapshot prior to the attack within minutes. A typical recovery time for a VergeOS customer to successfully recover from and eliminate a ransomware attack is less than thirty minutes.

Conclusion

On-premises IT can learn from MSPs by adopting their best practices. These practices enhance efficiency, scalability, security, and cost management. Modern infrastructure software, like VergeOS, integrates virtualization, storage, networking, and cloud services, extending server longevity and supporting diverse hardware configurations while ensuring high availability and reducing the need for frequent server refreshes. This approach achieves greater data center density with efficient resource utilization and cost-effective licensing models. VergeOS enhances security with features like multi-factor authentication, read-only OS installations, and isolated Virtual Data Centers (VDCs), ensuring rapid recovery from cyber threats.

Filed Under: MSP Tagged With: Hyperconverged, MSP, ransomware

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