On day three of VMware Explore 2025, Pete Flecha and John Nicholson sit down with Drew Nielsen to explore the economic value of VMware Cloud Foundation (VCF).

Drew explains how customer sentiment has shifted since last year—organizations have moved past the “five stages of grief” around perpetual licensing and are now fully embracing VCF. He highlights how VCF 9 with memory tiering delivers measurable savings:

~40% less costly than public cloud
~50% less costly than building a traditional three-tier data center

The discussion dives into hardware refresh strategies, emphasizing NVMe drives as essential for memory tiering, and introduces the Private Cloud Maturity and Optimization Tool (PCMO). The PCMO now goes beyond cost modeling with new upgrade readiness features, helping customers identify blockers and prepare for VCF 9 adoption.

Whether you’re evaluating cloud costs, planning your next hardware refresh, or considering a VCF upgrade, this conversation offers practical insights on how to maximize value from your private cloud investments.

👉 If you’d like to explore your own customized cost model, VMware’s sales teams and partners can help you get started with just four simple inputs.

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Private Cloud Economics: VCF 9 vs. Public Cloud