SMBC Nikko Securities migrates from VMware to reduce IT costs

Following changes to VMware's licensing structure, many enterprises are re-evaluating their virtualization foundations to avoid rising costs. While options include full migration to public clouds or adopting container environments, there is a growing trend toward returning to on-premises infrastructure using Linux KVM-based solutions.

SMBC Nikko Securities has implemented a significant transition from VMware to Red Hat OpenShift Virtualization to manage rising IT expenses. By utilizing Red Hat's migration tools and hardware from Dell Technologies, the firm aims to reduce its IT infrastructure costs by approximately 20% over five years. This migration, managed by the Japan Research Institute, leverages the company's existing familiarity with Red Hat Enterprise Linux to ensure compatibility and scalability. The move is part of a broader strategy to accelerate application modernization by integrating virtual machines with containerized environments.