8 minutes
VMware has gotten more expensive. Quite expensive. After Broadcom took over, licensing costs went up VMware got more expensive. Quite expensive. After Broadcom took over, licensing costs went up and familiar partnership structures disappeared. Since then, many organizations have been looking around: what are the alternatives? Nutanix, Hyper-V, Proxmox…. and XenServer. The latter is underestimated in many conversations, and for a logical reason. For years, XenServer was only available as part of a Citrix license, intended for Citrix workloads and not as a standalone data center hypervisor. That picture is now no longer true. And recent developments make the story stronger than it has ever been.
Why XenServer has long been overlooked
For decades, XenServer was included with Citrix Virtual Apps and Desktops, intended exclusively for Citrix workloads. Those who didn’t have Citrix didn’t look at XenServer. And those who did have Citrix saw it as a byproduct, not a conscious infrastructure choice.
On top of that came something else: the further development of XenServer had been at a standstill for a long time. Citrix had other priorities, and the platform fell short of what the market expected of a modern hypervisor. That rightfully gave XenServer the image of a lagging product.
That has changed. After Cloud Software Group (CSG) acquired Citrix, XenServer development resumed in earnest. There is a clear roadmap, new versions are being actively released, and the platform is being positioned more broadly. XenServer is no longer a byproduct.
What’s changed: three developments that are making a difference
1. XenServer is now available for all workloads
Citrix has officially announced that XenServer is no longer reserved for Citrix environments. The hypervisor is now available for all virtualization workloads, including normal server workloads, databases and enterprise applications. This is a fundamental change in direction. It positions XenServer as a full-fledged data center platform.
It is important to note, however, that XenServer cannot be purchased separately. The hypervisor is included as part of a Citrix license, such as Citrix Private Cloud, UHMC or Platform. Customers with such a license automatically receive 10,000 CPU socket licenses for XenServer Premium. So those already using Citrix already have a hefty XenServer base in their hands, with no additional purchase cost. For organizations without a Citrix license, XenServer is not an option at this time.
2. Veeam announces support for XenServer
One of the biggest practical objections to XenServer has always been: Veeam doesn’t support it. Veeam Data Platform v13 is now available, but it does not yet include XenServer support. Veeam did announce that that support is coming. Veeam is the standard for many organizations when it comes to backup and recovery. Once that integration is in place, the biggest barrier to serious XenServer adoption disappears.
For organizations that have already built their backup strategy on Veeam, this is a development to keep a keen eye on.
3. XenServer 9 shows continued development is serious
XenServer 9 is currently in public preview. The new version shows that CSG is actively investing in the platform. The most notable improvements coming:
- NUMA Performance Optimizations: virtual machines are placed smarter based on the host’s physical memory architecture. This yields lower latency and better density for heavy workloads.
- Host Secure Boot: only trusted, signed boot components are loaded. This provides a hardware-anchored layer of security that is increasingly important in environments with stringent compliance requirements.
- Driver Multi Version Management: hardware compatibility and lifecycle management are simplified by allowing hosts to use multiple driver versions, with automatic correction of misconfigurations.
XenServer 9 is not ready for production at this time. Wait for the General Availability release before seriously evaluating this for your own environment. But the preview makes it clear that there is a serious roadmap behind it.
What does VMware really cost and how does XenServer compare?
Broadcom completely overhauled its licensing structure after acquiring VMware. The familiar vSphere bundles were replaced by larger suites, and many organizations saw their annual VMware costs increase by hundreds of percent. Familiar partner structures and smaller licensing models disappeared, hitting SMEs and midsize organizations particularly hard.
For Citrix customers, XenServer offers a different approach. Premium licenses are already included with certain Citrix packages, which makes the total cost of ownership equation for that group considerably more favorable than it might first appear. You don’t pay for an additional hypervisor license; you activate what you already have.
A smart migration strategy: start with your Citrix environment
You don’t have to do everything at once. And that’s exactly what makes XenServer so attractive to Citrix customers who want to start saving on VMware.
The logical approach is in two steps:
- Step 1: Migrate your CVAD environment to XenServer now. XenServer is already fully optimized for Citrix Virtual Apps and Desktops. You unload the Citrix workloads from VMware, activate the XenServer Premium licenses you already own, and start saving right away. In the meantime, you can set up your backup strategy for this environment with tooling that already supports XenServer.
- Step 2: Migrate your remaining workloads as soon as Veeam adds XenServer support. Veeam Data Platform v13 is already available, but it does not yet include XenServer support. Once Veeam adds that support, you’ll also be able to decouple the rest of your backend environment from VMware step by step. At that point, your backup strategy will be fully in place and you won’t have to compromise on your recovery requirements.
This approach has a big advantage: you never get ahead of what the tooling can handle. Your Citrix environment runs on XenServer, your backend environment runs on VMware for now. Two separate paths, controlled. No big bang, no unnecessary risks.
The result: you start phasing out your VMware dependencies and your VMware costs now, without waiting until everything is perfect. And once Veeam releases XenServer support, you take the next step from a position you already know.
For whom is XenServer a logical choice?
XenServer is currently of most interest to organizations that:
- Already using Citrix Virtual Apps and Desktops with a Private Cloud, UHMC or Platform license, and want to reduce their hypervisor costs.
- Faced with hefty VMware cost increases and wanting to evaluate an alternative without immediately shaking up the entire infrastructure.
- Value an active roadmap and want to avoid becoming dependent again on a vendor that can unilaterally change the rules of the game.
XenServer is less suitable for organizations without a Citrix license, those heavily integrated with the VMware ecosystem (NSX, vSAN, Aria) or those already fully committed to public cloud platforms as their primary infrastructure.
Common objections, answered honestly
“Veeam does not yet support XenServer.”
That’s true, and it’s a real concern for the short term. Veeam Data Platform v13 is already available, but it does not yet include XenServer support. That’s no reason to wait to take the first step. Start with your CVAD environment, and migrate the rest as soon as Veeam adds support. That way you combine progress with manageability.
“XenServer is only for Citrix environments, right?”
It was. Citrix has officially changed this: XenServer is now available for all workloads. That said, you do need a Citrix license to use XenServer. Purchasing it separately is not possible.
“Development has been stagnant for a long time, I don’t trust the platform.”
That distrust was understandable and, frankly, justified for a long time. But CSG has seriously resumed development. The XenServer 9 preview, the broader positioning and the Veeam announcement are no accident. This is a platform in flux, not a product on the phase-out list.
“We are stuck with VMware because of existing investments.”
That’s a real challenge. But you don’t have to do everything at once. Start with the Citrix environment, where the transition is least complex and the licenses are already in place. The rest will follow when the tooling is ready.
Practical checklist: is XenServer right for your organization?
- Check which Citrix licenses you have in use. Do you have a Private Cloud, UHMC or Platform license? If so, you probably already have XenServer Premium privileges.
- Ask your VMware reseller for an honest comparison of total license costs for the next three years.
- Inventory which VMware-specific features you actually use. Many organizations use only a fraction of the features available.
- Plan the migration in two phases: first the CVAD environment to XenServer, then the backend once Veeam adds XenServer support to Data Platform.
- Schedule an evaluation with a partner who thoroughly understands both XenServer and the rest of your infrastructure.
What New Yard can do for you
At New Yard, we look at the digital workplace as an ecosystem. That means we don’t focus on a specific product, but on what best fits your situation, your budget and your future plans.
We see with many Citrix customers that the question about the hypervisor is now becoming topical. The licenses are sometimes already there, but the knowledge is lacking to assess whether XenServer actually fits the broader infrastructure. That’s exactly what we help with: an honest picture, without steering for a predetermined outcome.
Whether you’re running entirely on Citrix, managing a hybrid environment or actively looking for a VMware exit, we’re happy to help think through the step that makes sense for you.
Want to know what XenServer means for your environment?
Schedule a no-obligation introductory meeting and we’ll go over your current infrastructure together. No sales pitch, just an honest picture of what is possible.