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  • What lies ahead for service providers?

What lies ahead for service providers?

May 13, 2026•
Resource type: Overview
Download PDF

Service providers are navigating a changing virtualization landscape

As a service provider, your organization is essential to your customers’ success. They rely on your expertise to advance their business with security-focused, cost-effective technologies aimed at achieving winning outcomes. However, when a critical virtualization vendor suddenly becomes increasingly expensive or shifts its delivery model, your entire operation becomes at risk. With the required shifts toward automated compliance coming in spring 2027, the time to protect your path forward is now.

To move forward with confidence, service providers are looking for a solution that:

  • Keeps pace with current needs
  • Prepares for future growth and scale
  • Streamlines solutions
  • Consolidates vendors
Red flowchart shows how meeting needs and streamlining solutions leads to growth and vendor consolidation

That is where Red Hat can help service providers navigate the path to modernization. Using Red Hat® open source technology, your business can streamline further with powerful virtualization that provides the performance, flexibility, and predictability you need without sacrificing the performance and features you expect. It is the smart way to unify and modernize your entire environment.

Flexible, scalable, security-focused, virtualization service providers can trust

  • Migrate more quickly and safely
  • Run workloads reliably
  • Operate at scale
  • Deploy with confidence
  • Save time and reduce costs
  • Build a strong foundation for AI

Red Hat OpenShift Virtualization meets your immediate virtual machine needs

Service providers can adopt Red Hat OpenShift® Virtualization to provide a modern bare-metal hypervisor that powers private and sovereign cloud environments. As a feature of Red Hat’s market-leading Red Hat OpenShift platform, Red Hat OpenShift Virtualization has the capabilities you need to confidently migrate, deploy, and operate virtual machines (VMs), backup as a service, and virtual desktops. With this powerful technology, you can reduce infrastructure complexity, reduce licensing costs, manage multitenant environments, and simplify site reliability engineering (SRE) operations.

Key question

Red Hat and Red Hat OpenShift

Conventional providers

What will migration look like?

A security-focused, flexible execution at scale and at a desired pace, minimizing risk and downtime. Explore OpenShift migration advisor for a no-cost, self-service migration evaluation.

This path is unclear.

Will it work with existing workloads and systems?

Yes. It is compatible with both Linux® and Windows platforms,with broad technology, and ecosystem compatibility.

Expect limited compatibility with technology partners.

Is it user-friendly?

Yes. It offers streamlined management for VMs and more.

Unified VM management is available, but no central management for future-ready capabilities.

Can it maximize uptime?

Yes. Increased uptime service-level agreement (SLA) can be achieved on Red Hat OpenShift.

It is likely.

Can it minimize slow and risky manual tasks?

Yes. Integrated automation is provided across the full landscape: automation for networking, storage, hardware, and other appliances via Red Hat Ansible® Automation Platform. Automation for applications and infrastructure via GitOps with Argo CD is also available.

Automation is available via Ansible Automation Platform. However, additional automation is not fully integrated.

Does it meet global compliance and regulatory requirements?

Yes. There is a unified security platform embedded into every layer of a cloud-native structure.

Potentially available.

Will existing hardware and other tools need to be replaced?

No. It is compatible with a wide range of existing hardware, storage, data protection, networking, and observability investments, reducing the need for new purchases.

Limited compatibility is available, but may require extensive new hardware and software.

Can cloud-native applications run alongside VMs?

Yes. It can consistently deploy, operate, and manage VMs and cloud-native applications among clusters in the most cost-effective entitlement tier of Red Hat OpenShift.

Likely not available.

Is it already proven to meet critical business needs?

More than 1.5 million VMs in Fortune 500-sized environments assessed and/or migrated into production;1 designed with simplicity and scalability for all VM estates.

May meet current challenges, probably not future concerns.

Red Hat wants to help with your migration to OpenShift Virtualization

Despite the urgency of a looming early 2027 deadline, you still need to keep an eye on the bottom line when evaluating a new vendor. With OpenShift Virtualization, your organization will get the flexibility and financial savings that come with a large and varied partner ecosystem with enhanced capabilities in data protection, network management, and system optimization. That means that your organization will not be locked into proprietary solutions and will not have to make a large monetary commitment for costly new hardware.

Red Hat also offers commercial incentives for our service provider partners, including:

  • Physical node pricing for Red Hat OpenShift Virtualization Engine, allowing organizations to take advantage of high-core-density CPUs without the penalty of per-core counting.
  • Red Hat enablement subscriptions.

With 3 levels of pricing tailored for service providers’ needs, Red Hat provides options that can fit your organization’s specific budget and goals.

  • Use only what you need: Report what you sold each month—both metered consumption and yearly or upfront committed deals closed that month. A monthly bill is rendered based on that report.
  • Multiyear contract: Commit to 3-5 years of OpenShift Virtualization and find out about getting a discount to help offset the costs of migration from existing vendors during the first year.
  • Upfront payment: Pay in full at the beginning of a multiyear contract and get additional financial incentives like further savings, increased capacity, or both.

Adopt OpenShift Virtualization and build for the future

Service providers can trust Red Hat OpenShift. If your organization is looking for well-performing virtualization technology delivered with proven flexibility, security, and support, consider OpenShift Virtualization. It is the future-ready solution your service organization needs to confidently meet and exceed your customers’ expectations.

Find out more about Red Hat virtualization solutions

To see what your organization’s move to OpenShift Virtualization might look like: 

  • Check out our no-cost OpenShift migration advisor.2
  • Watch the OpenShift Migration Advisor Demo.3
  1. Red Hat client data.

  2. Red Hat blog. "Generate a no-cost VMware migration-readiness report." 17 March 2026.

  3. Red Hat video. “OpenShift Migration Advisor Demo.” 16 March 2026.

Tags:Virtualization

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