As the virtualization market undergoes historic shifts, service providers worldwide are re-evaluating their infrastructure foundations. With changing licensing structures, per-core cost increases, and shifting vendor roadmaps, managed service providers (MSPs) and cloud service providers face pressing decisions about their long-term architecture.

Service providers require a modern, predictable alternative that supports current virtual machine (VM) workloads while establishing an AI-ready foundation for future growth. Red Hat OpenShift Virtualization delivers a proven, cloud-native platform built on physical node pricing rather than per-core penalties. It allows service providers to scale VM estates, unify operations across containers and VMs, and maintain operational stability across hybrid and sovereign cloud environments.

Here’s a look at how service providers across regions are migrating to OpenShift Virtualization to secure their competitive edge and deliver value to their end customers.

Strategic service provider wins across the globe

Advent One (APAC)

Advent One developed a virtualization migration use case focused on VM modernization and data protection. For this particular use case, Advent One integrated OpenShift Virtualization with storage solutions from NetApp and backup and recovery capabilities from Veeam. Advent One offers enterprise clients a flexible framework to migrate and manage VM workloads without losing operational continuity or data resilience.

Core42 (EMEA)

Core42 adopted OpenShift and Red Hat OpenStack Services on OpenShift to power its sovereign cloud and AI infrastructure offerings. By running virtualized workloads alongside containerized AI models on a unified platform, Core42 provides regional clients with sovereign infrastructure that complies with local data regulations while keeping pace with artificial intelligence workloads.

IBM (Global)

Building on its announcement of Red Hat OpenShift Virtualization Service on IBM Cloud, IBM Consulting is working with Red Hat Services and IBM Technology Expert Labs to help global enterprises migrate VM workloads at scale. By pairing managed lifecycle operations and automated migration tooling with deep advisory and implementation expertise, IBM Consulting enables organizations to offload operational management, mitigate migration risks, and establish a security-focused foundation for future containerization and AI-driven workloads.

NxtGen (APAC)

NxtGen, India’s largest domestic sovereign cloud and AI infrastructure provider and a recent dual honorable mention recipient in the 2026 Red Hat Ecosystem Innovation Awards, expanded its cloud service capabilities by incorporating OpenShift Virtualization into its hosting platform. NxtGen delivers scalable virtualization options for enterprise clients across the region seeking to optimize compute density and transition away from legacy hypervisor dependencies.

SCSK Corporation (APAC)

In Japan, premier solution provider SCSK Corporation sought a resilient platform to future-proof its managed services business while expanding its cloud capabilities. Facing the need for a viable VMware alternative and a strategy to streamline future infrastructure, SCSK turned to Red Hat. Using OpenShift Virtualization and dedicated Technical Account Management (TAM) support, SCSK created a standard operating environment for its managed service platform. Now, SCSK is better positioned to expand its MSP footprint and provide a flexible, AI-ready foundation for its enterprise clients across Japan.

SONDA (LATAM)

Red Hat is collaborating with SONDA, a multinational IT services company in Latin America, to promote infrastructure modernization, automation, and innovation based on open architectures in the region. The need to rethink virtualization strategies and platforms has become imperative, considering a market facing severe cost increases, complex licensing, and legacy technologies. Therefore, SONDA has selected Red Hat OpenShift as a core platform in its virtualization-based infrastructure modernization strategy, with initial implementations covering Chile, Brazil, and Colombia. The 1st  phase of the project includes migration assessment services, specialized services to support the transition, technical training, and Technical Account Management (TAM) services, laying the foundation for an infrastructure evolution with less operational complexity and greater regional consistency.

VSHN (EMEA)

In Europe, service provider VSHN collaborated with Red Hat to help Health Info Net AG (HIN) deploy OpenShift Virtualization to support strict data sovereignty and healthcare compliance requirements. By deploying cloud-native virtualization within a sovereign cloud architecture, VSHN provides healthcare organizations like HIN with safe, isolated environments for sensitive patient data while supporting modern application delivery.

Why service providers choose OpenShift Virtualization

Service providers face unique business constraints. Their platforms must be profitable, multi-tenant, and capable of adapting to modern application paradigms. Red Hat helps service providers worldwide meet these requirements by offering:

  1. Predictable physical node pricing: Avoid per-core licensing penalties and maximize CPU core density without unexpected costs.
  2. Unified management: Run VMs alongside containers and serverless workloads on a single, consistent Kubernetes platform.
  3. A diverse partner ecosystem: Integrate seamlessly with trusted storage, backup, and networking partners like NetApp, Veeam, Everpure, and many more.
  4. Accelerated migration tools: Use Red Hat’s migration toolkit for virtualization, OpenShift migration advisor, and Red Hat Ansible Automation Platform to automate VM migrations at scale.

Next steps for your virtualization strategy

Whether you’re seeking to reduce licensing overhead, migrate off legacy hypervisors, or build a sovereign cloud environment for your customers, Red Hat OpenShift Virtualization provides a clear path forward.

Explore the benefits of Red Hat OpenShift Virtualization for service providers and request a virtualization migration assessment today to evaluate your VM estate and plan a seamless transition.

Resource

15 reasons to adopt Red Hat OpenShift Virtualization

Discover how Red Hat OpenShift Virtualization can unify and simplify your IT operations, using 1 platform for both virtual machines and containers.

About the author

Kevin Tunks is the Global Ecosystem Go-to-Market (GTM) Leader for Red Hat OpenShift. In this role, Kevin is responsible for bridging Red Hat's business strategy, technology sales, and implementation with the partner ecosystem to fuel customer success. Kevin is an award-winning IT professional bringing innovative approaches to align modern technologies with critical partner needs. With more than 25 years of experience, he understands the intricate balance between customer desires and end user goals, as well as what’s required from a technical perspective to bring a concept to life. He has a passion for discovering new and innovative approaches to solving enterprise business challenges. He has a skill for creating high performance teams, streamlining processes, delivering solutions, and achieving results.

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