For years, purchasing virtualisation software was a straightforward process. But by June 2027, standalone virtualisation software licenses are being phased out and replaced by all-in-one bundle packages, often leaving businesses paying for extra features they do not need. For African businesses, and other mid-sized businesses around the world, a ‘wait-and-see’ approach can narrow choices and lead to a rushed, expensive contract.
SUMMARY: By June 2027, standalone virtualisation software licenses are being phased out and replaced by all-in-one bundle packages, often leaving businesses paying for extra features they do not need. For African businesses, and other mid-sized businesses around the world, a ‘wait-and-see’ approach can narrow choices and lead to a rushed, expensive contract. The better move is to gather the facts, align internal teams, assess actual use, review long-term cost projections, and choose a path built for predictability and data sovereignty.
For years, purchasing virtualisation software was a straightforward process: you bought the exact number of licenses you needed, whether it was two, or 2,000! Managing that environment was equally simple. Today, however, major shifts in licensing models are impacting this predictable landscape.
Vendors are moving away from simple, standalone licenses and are funneling businesses toward expensive bundled packages. This often results in having to pay for extra features you’ll never use. But taking a ‘wait-and-see’ approach isn't a safe strategy either.
As international vendors shift their attention towards bigger global clients, many African businesses are left feeling like an afterthought. The best move right now? Gather the facts, align your internal teams, and map out a strategy built for long-term predictability and cost control.
While especially noticeable across Africa, these licensing shifts are also creating challenges for mid-sized businesses around the world, where rigid enterprise packages don't always align with local market needs.
Across the industry, the old way of buying virtualisation software, one license at a time, is being phased out. This is replaced by all-in-one bundle packages.
We asked our Partner Manager, Madelise Grobler, for her thoughts. Madelise is a business development professional in the information technology and services industry, specialising in online technologies. She is passionate about building strategic relationships with clients and partners to drive sustainable business growth.
Businesses might buy a specific license, but only use 10% of the license functionality. A bundle built for a global enterprise doesn’t necessarily make sense for a smaller, more agile business. It’s worth doing an assessment of what you’re actually going to use, versus your investment.
This gap is precisely why we built our sovereign cloud hosting solutions. Rather than one-size-fits-all bundles, our private cloud uses a transparent, consumption-based pricing model. You only pay for the capacity you consume, supported by flexible terms designed around your business, not someone else's global footprint.
International vendors are focusing their attention, support, and product roadmaps almost exclusively on their top-tier global accounts.
For mid-sized businesses across Africa, that’s a problem. Decisions are being made with a global lens, not a local one.
It’s tempting to sit tight until things become clearer.
Waiting too long tends to cost you in three ways:
| Your team misses the chance to learn about and test alternative options while there’s still time to do it calmly. | Your choices narrow as the deadline gets closer, often pushing you into a rushed, expensive contract just to stay operational. | Once your old agreement lapses, you lose your negotiating power, and often you will be automatically migrated to a new bundle. |
The good news: Starting the conversation internally now, well before June 2027, gives you room to actually choose your path instead of having it chosen for you.
Think of it like a plane holding in a pattern during bad weather: it isn't turning back, and it certainly isn't landing blind. It’s gathering crucial data and waiting for the right window to land safely. Applied to your virtualisation strategy, this means resisting the pressure to sign a long-term contract until you’ve fully explored and aligned your alternatives.
There are three critical factors to evaluate early: data sovereignty, operating system costs, and regional compliance rules. A strategy that makes financial sense in one market, such as the Middle East, rarely translates directly to Africa due to local regulatory and cost structures.
Vendors offer attractive, discounted three-year contracts to get you on board. However, once you migrate to their platform, high switching costs lock you in, making it easy for prices to escalate sharply when that initial term expires.
Long-term cost projections might just be estimates, but they give you something vital: leverage when it’s time to negotiate.
Four things you can do now:
| Check what you’re actually using versus what you’re paying for; businesses might find functionalities that they do not need. | Skip the ‘wait-and-see’ approach; it usually ends with a worse deal, not a better one. | Ask for cost projections that stretch to at least six years out, not just three, so that you can see the real financial picture. | Make sure whatever you choose next actually fits your region’s data rules and operational realities. |
As a data migration Partner for SAP systems, EPI-USE Labs helps African businesses transition to private cloud environments built for control, predictability, and sovereignty. Explore our sovereign cloud hosting solutions to see how you can navigate the June 2027 shift on your own terms.