NXP reduces virtualization costs and gains strategic flexibility with Apache CloudStack

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The situation

Preparing for strategic autonomy

As a leader in the high-tech industry, NXP must continually innovate and scale up, and its infrastructure must support that ambition. Recent shifts in the virtualization market not only led to significant cost increases but also created uncertainty about product direction and risks of vendor lock-in. NXP decided to take control of its infrastructure by seeking an open and cost-effective alternative that would still provide its engineering teams with a cloud-like experience.

Licensing pressure and vendor lock-in

As more vendors shift to subscription-based models, NXP faced unsustainable cost increases during their transition from perpetual licensing. Since NXP already operates on the "Pets vs. Cattle" principle, treating its thousands of virtual workloads as automated, disposable assets rather than unique "pets", they required a high-performance infrastructure that matched this specialized operational model without the escalating overhead. To maintain this scale and efficiency during company-wide cost optimizations, NXP turned to SUE for a more cost-effective, open alternative.

Processor chip with light-emitting data streams
Maarten Kelderman, Senior Director of IT – Global R&D, NXP
"We were looking for a cost-effective virtualization solution that offers the benefits of the cloud: scalability, stability, and security. With Apache CloudStack and guidance from SUE, we have proven that an open-source platform can offer the same operational capabilities while giving us back control over costs and our technology roadmap."

From Proof of Concept to production implementation

SUE was brought in after NXP had shortlisted virtualization alternatives. Our proposal centered on Apache CloudStack: a mature open-source platform capable of replicating the core functionalities of proprietary solutions, including live migration, VM cloning, role-based access control, and online resizing. Because Apache CloudStack is fully open source, NXP gains long-term transparency, autonomy, and flexibility, while both engineering and operations teams continue to enjoy an excellent user experience.

We started with a PoC that had to demonstrate that Apache CloudStack could meet more than 40 functional requirements defined by NXP. Week after week, we validated these use cases through live demos and close collaboration with their engineering teams.

 

Following a two-month proof of concept, during which Apache CloudStack met 95% of NXP’s 40+ functional requirements, the project moved into a “Pre-Prod” phase to validate Apache CloudStack (ACS) within a representative multi-site data center environment. In this phase, SUE provided a Foundational High-Level Design and additional expertise to enable the migration of R&D test and development workloads. This validation process ensured that NXP’s R&D IT leaders had access to empirical performance data and support for custom design, allowing them to make an informed, low-risk decision for the eventual global production deployment.

From proprietary constraints to open-source agility

  • Lower operating costs: By moving away from proprietary software, NXP realized significant budgetary relief.

  • Strategic independence: By opting for an open architecture, NXP avoided vendor lock-in and the risks associated with proprietary roadmaps.

  • Cloud experience, On-premises: Engineers now request and manage VMs via a self-service portal, similar to the user experience of the public cloud.

  • Scalable design: Apache CloudStack effectively scales with NXP's workload requirements, both for Linux and Windows environments.

  • Ready for the future: Their new data center in the US was fully equipped with Apache CloudStack.

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The result

  • A repeatable Infrastructure as Code deployment.
  • A fully configured and supported Apache CloudStack environment, validated against NXP's operational and security standards.
  • Automated deployment blueprints, which NXP used to replicate our demo environment in their production environment.

 

Following the initial build, we supported NXP's team in mirroring the deployment across their global environments. Today, this architecture powers a consistent, scalable, and secure
platform across six global data centers.


What began as a proof of concept evolved into a long-term architectural shift. The cloud-like agility of Apache CloudStack, combined with its open-source cost model, enabled NXP to rethink how infrastructure is delivered to global R&D teams. With Apache CloudStack, NXP gained strategic freedom, budgetary flexibility, and a stable platform to scale up R&D innovation.

To learn how SUE moves applications and data in waves, visit the page Cloud Migration.

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Stefan Behlen
Stefan Behlen

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