Why is NSX not selling?
NSX isn’t selling as well today due to a combination of rising preference for cloud-native networking, the availability of simpler cloud-provider networking services, and ongoing cost and complexity concerns tied to NSX deployments.
What NSX Is and Why Organizations Consider It
NSX Data Center and NSX-T Data Center offer software-defined networking, micro-segmentation, automated provisioning, distributed firewalls, and load balancing across VMware environments and, in NSX-T, across multi-cloud setups. Enterprises evaluate NSX to consolidate security policy, standardize networking across data centers and clouds, and gain automation that scales with virtualized or containerized workloads. Adoption tends to be strongest among organizations already invested in VMware's virtualization stack and those seeking centralized security controls for complex environments.
Strengths in practice
Several capabilities frequently cited by users as NSX advantages include:
- Granular micro-segmentation and centralized security policy management.
- Consistent networking and security across virtual machines, containers, and multiple cloud deployments.
- Deep integration with the VMware stack (vSphere, vCenter) and automation tooling for operators.
- NSX-T support for multi-hypervisor and multi-cloud environments, enabling workload mobility and policy consistency.
These strengths explain why some organizations with mature VMware environments continue to pursue NSX, particularly when security and policy consistency across a hybrid footprint are top priorities.
Factors Driving Slower NSX Adoption
The market has shifted away from network virtualization as the primary answer to modern data-center networking, with several intertwined factors shaping NSX demand:
- Cloud-native networking dominates Kubernetes environments, with CNIs like Calico and Cilium delivering scalable, lighter-weight approaches tailored to microservices.
- Public cloud providers offer built-in VPC/virtual network services that reduce the need for a separate SDN layer in many use cases, especially for new workloads.
- Complexity and total cost of ownership associated with deploying and maintaining NSX, including licensing, skill requirements, and operational overhead.
- Strategic realignment within VMware under Broadcom ownership toward integrated, cost-efficient platforms, which can slow NSX-specific roadmap investments.
- Misalignment for organizations pursuing rapid cloud-native modernization or those prioritizing speed-to-value over centralized policy control.
Taken together, these factors contribute to slower growth trajectories for NSX compared with earlier expectations, particularly among startups and cloud-first enterprises.
Where NSX Still Fits: Use Cases and Strengths
Despite slower overall adoption, NSX continues to be favored in certain scenarios where policy-driven security and centralized control are crucial, and where VMware-centric infrastructures remain dominant:
- Large on-premises data centers and private clouds with established NSX deployments seeking uniform security policies across workloads.
- Organizations requiring strong micro-segmentation and distributed firewalls to meet complex regulatory or segmentation requirements.
- Enterprises that want tight integration with VMware tools, automation pipelines, and existing security operations center (SOC) workflows.
- Multi-hypervisor or heterogeneous environments where NSX-T provides a consistent overlay across platforms and data centers.
For these customers, NSX can still deliver value by preserving policy fidelity and reducing blast radius, even as they adopt cloud-native components elsewhere.
What Buyers Are Moving To Instead
Many buyers are turning to a mix of cloud-native approaches and cloud-provider networking services, along with security platforms that align with modern application architectures. The trend emphasizes simplicity, speed, and native integration with Kubernetes and cloud services.
- Kubernetes-native networking via CNIs such as Calico or Cilium, which integrate directly with service meshes and container runtimes.
- Cloud provider network services (VPCs, VNets, or equivalent) that are maintained by the cloud vendor and tightly integrated with the rest of the cloud stack.
- Managed or simpler SDN offerings from software vendors and managed service providers, focusing on faster deployment and lower operational overhead.
- Security platforms and policies that operate across cloud-native workloads, often combining network, identity, and access controls in a single framework.
This shift reflects a broader industry move toward cloud-first architectures, where the ease of use and speed to deploy can outweigh the granular control long offered by NSX.
Outlook and Recommendations for Buyers
For organizations weighing NSX against current market options, a disciplined evaluation is essential. Consider total cost of ownership, time-to-value, alignment with cloud-native roadmaps, and the skill set available in the operations team. If ongoing VMware investments remain central to the IT strategy, NSX can still play a role, particularly for stringent security requirements and legacy workloads. For others, pilot projects with cloud-native networking and native cloud services may provide faster value and simpler management.
Summary
NSX faces headwinds from the rapid rise of cloud-native networking and cloud provider offerings, along with cost and complexity concerns in ongoing deployments. While it retains strong appeal for VMware-centric, security-heavy use cases, a broad move to Kubernetes, CNIs, and cloud-native security models is reshaping the market. Enterprises should weigh TCO, roadmap alignment, and internal capabilities when deciding whether NSX remains the right fit or if cloud-native alternatives better support their modernization goals.
