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Case Study

Healthcare Migration -- VMware to Bare Metal | Cobham Consulting Group

A regional healthcare provider with 12 hospitals and 40 VMware workloads needed to exit a VMware licensing agreement without disrupting clinical operations. Zero tolerance for downtime on patient-record systems. HIPAA compliance required throughout.

The problem

The organization faced a VMware licensing renewal that would increase annual costs by 340 percent following the Broadcom acquisition. The alternative -- migrating 40 workloads to bare metal colocation -- required moving systems that had never been tested for portability, including clinical applications with vendor support agreements that restricted migration without prior approval.

Three workloads ran applications where the vendor explicitly required VMware as a supported platform. Seven workloads had not been tested for restore in more than 18 months. Eleven workloads had undocumented internal dependencies discovered only during the audit phase.

What we did

Two-week migration audit produced the dependency map and risk register. We identified the three vendor-restricted workloads early and opened vendor escalations in week one -- two were resolved with written exceptions, one required a parallel hosted environment during the transition window. The migration was executed in four phases over eight weeks, with clinical systems migrated in Phase 4 after all supporting infrastructure was validated.

Colocation: Equinix NY5 for primary, with a secondary Hetzner dedicated server cluster in Falkenstein for DR replication. Proxmox replaced VMware on all migrated hosts. Ansible replaced manual configuration on all systems during migration.

Outcome

All 40 workloads migrated with zero unplanned downtime to patient-record systems. Annual infrastructure cost reduced by 34 percent net of colocation fees. DR test completed 30 days post-migration with successful restore of all tier-1 systems within 45 minutes. HIPAA compliance maintained throughout with written attestation from compliance counsel.

Common questions

Frequently asked.

How did you handle the vendor-restricted VMware workloads?
We opened vendor escalations in week one of the audit. Two vendors granted written exceptions for migration to Proxmox. One vendor required a parallel environment during the transition -- we ran the old and new environments simultaneously until the vendor's support team signed off on the Proxmox deployment.
How was HIPAA compliance maintained during migration?
Parallel environments with no direct data transfer between them. Data was migrated using encrypted backup-and-restore procedures with chain-of-custody documentation. PHI was never in an environment that was not covered by the organization's existing BAAs.
What was the total migration cost compared to staying on VMware?
The engagement cost plus 18 months of Cobham retainer was less than the first year of the new VMware licensing fee. The organization reached cost neutrality within 14 months and saved 34 percent annually thereafter.
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