From Traditional to Cloud Native Virtualization: One platform for all workloads

Today, many organizations are rethinking their virtualization strategy — and not only for cost reasons. Hybrid multi-cloud architectures, along with emerging edge and AI use cases, are increasingly difficult to support with existing platforms. Cloud native virtualization solutions, such as SUSE Virtualization, help bridge the gap between stable legacy systems and modern application environments.

Virtualization remains a foundational element of most IT environments. Business-critical applications, databases, and legacy systems have been running reliably on virtualized platforms for many years. What once delivered stability, however, is now increasingly slowing application modernization and with it, broader digital transformation initiatives.

Traditional virtualization platforms struggle to keep pace with the changing realities of enterprise IT. For example, very few organizations still run their IT entirely on premises. According to the Cloud Report 2025 published by the German digital association Bitkom, 90% of all German companies now use cloud-based applications. 41% of these companies are already pursuing a multi-cloud strategy, purchasing cloud services from different providers.

At the same time, new requirements are emerging around automation, containerization, DevOps, data-intensive workloads, and AI. IT teams are expected to deliver innovation faster, scale resources more dynamically, and maintain control over governance, security, and costs. Traditional virtualization platforms are increasingly unable to meet these expectations.

Where traditional virtualization reaches its limits

Virtualization was originally designed to improve utilization of physical server resources in centralized data centers. In today’s distributed IT landscapes shaped by containers, cloud services, and edge deployments, this model is showing clear structural limitations:

• Lack of flexibility in hybrid environments: Traditional virtualization platforms work well in stable, clearly defined infrastructures. Extending them to cloud and edge environments usually requires additional tools and increases operational complexity.
• Separate management of VMs and containers: Classic virtualization and cloud native platforms are frequently operated in parallel, leading to silos, duplicated processes, and limited end-to-end visibility.
• High levels of manual effort in operations and migration: Provisioning, scaling, and lifecycle management are often only partially automated, making rollouts and migrations time-consuming and risk-prone.
• Poor cost efficiency for dynamic workloads: Rigid capacity and licensing models make it difficult to efficiently support workloads with variable demand and short lifecycles.
• Limited innovation capability: AI-driven, data-intensive, and edge-based applications often require significant additional effort to integrate.

In short, while traditional virtualization is not becoming obsolete, it is increasingly a limiting factor for IT organizations seeking to automate and modernize their infrastructure. 

Cloud native virtualization as the next evolutionary step 

Cloud native virtualization extends traditional virtualization to better support modern, distributed IT environments. At its core is a unified architectural approach that enables automation, scalability, and integration across multiple environments. This makes it possible to centrally manage different workload types on a single platform:

• Existing VM-based applications that require stability and predictable performance 
• cloud native workloads designed for rapid deployment and elastic scaling 
• Edge and specialized applications where proximity to data and machines is critical

Kubernetes serves as the central control and abstraction layer. Infrastructure is defined declaratively, managed through APIs, and provisioned automatically. Virtual machines are treated as regular workloads and managed alongside containers, eliminating the need to adapt or redevelop existing applications. 

This integration standardizes and simplifies IT operations. Provisioning, scaling, and lifecycle management follow consistent, repeatable processes. At the same time, cloud native virtualization enables a gradual transition toward modern architectures: existing applications remain in place where appropriate and can be modernized step by step. This allows IT teams to bridge stable legacy systems and innovative services without disrupting ongoing operations. 

Learn more about the evolution from traditional to cloud native virtualization in this white paper.

How organizations benefit from cloud native virtualization

Cloud native virtualization helps organizations drive technological change while using infrastructure resources more efficiently and flexibly. The result is a set of tangible benefits for both day-to-day operations and long-term strategic agility: 

• Higher operational efficiency: Standardized processes and a consistent operating model reduce complexity, coordination overhead, and error rates. 
• Improved scalability: New locations, additional workloads, and changing demand can be supported without fundamentally reorganizing operations.
• Faster response to new business requirements: IT teams can provision infrastructure more flexibly for data-intensive analytics, AI use cases, and edge deployments.
• Reduced pressure on IT teams: Automation and self-service enable reliable operation of complex environments with small teams.
• Better cost control: More efficient resource utilization, fewer manual interventions, and reduced operational complexity directly impact total cost of ownership.

To remain technologically independent in the future, it is important to avoid the vendor lock-ins of traditional virtualization products. Cloud native virtualization platforms, such as SUSE Virtualization, are based entirely on open-source technologies and open standards. This creates transparency, reduces structural dependencies, and increases long-term security. Companies can choose their preferred platforms, components, and operating models, thus securing their digital sovereignty. 

Cloud native virtualization in practice: BMW  

BMW AG has been successfully using cloud native virtualization for several years. The company aims to break down siloed architectures and create a unified, data-driven production environment that tightly integrates traditional production lines, modern cloud architectures, edge systems, and AI.

In collaboration with SUSE, BMW implemented an open, cloud native infrastructure spanning private cloud, public cloud, and edge environments. The foundation is an OpenStack-based platform using SUSE Virtualization and SUSE Rancher to manage containerized edge workloads. A key factor in BMW’s decision was the ability to operate traditional VMs and modern cloud native applications on a shared platform with a high degree of automation.

BMW has achieved measurable benefits, including:

• Handling of 110,000 builds per day in its private cloud environment
• Automated creation and deletion of 2.6 million VMs per month
• End-to-end integration across cloud and edge environments
• Digital twins of production lines for simulation and optimization
• AI-based quality inspection at the edge for faster anomaly detection
• Seamless scalability based on open, cloud native technologies

For BMW, cloud native virtualization has become a key enabler for digital factories, data-driven decision-making, and continuous optimization. As Andreas Pöschl, Senior Solutions Architect at BMW, puts it: “We are digitizing the factories, and we bring that together so we have continuous data management over the full process. […] If people don’t understand that there is something bigger there than just using a lot of VMs, you will not be able to leverage the benefits of public cloud.” 

New webinar series on cloud native virtualization

Learn more about why moving to a modern, cloud native virtualization platform is worth considering. On February 12, 2026, we are launching a webinar series focused on real-world use cases for SUSE Virtualization. Registration is now open for the first two sessions:

12  February: Virtualization Reimagined: Why SUSE is the Right Choice for Your Future

12 March: Seeking a VMware Alternative? How to Successfully Switch to SUSE