VMware (Broadcom)

Virtualization and cloud infrastructure, now part of Broadcom

IT Management & Infrastructure
Subscription

For · IT infrastructure teams and data center administrators at medium and large organizations

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VMware, since 2023 part of Broadcom, is the market leader in server virtualization and cloud infrastructure. The acquisition by Broadcom has led to drastic changes in the licensing model: perpetual licenses have been abolished, partner ecosystems have shrunk, and customers are forced to switch to expensive subscription bundles.
For many organizations, the transition to VMware Cloud Foundation (VCF) means a cost increase of 200-600% compared to the old situation. This has led to a massive re-evaluation of the VMware strategy among enterprise customers worldwide.

Procurement considerations

Have an independent TCO analysis performed
The transition to VCF has huge financial impact. Have an independent party calculate the Total Cost of Ownership including migration, training, and operational costs of alternatives.
Negotiate as a collective
Broadcom has fewer partners but more direct deals. Organizations that purchase jointly or deploy a strong procurement partner stand stronger in negotiations.
Explore alternatives as leverage
Nutanix, Proxmox, and Microsoft Hyper-V are serious alternatives. Seriously exploring a migration gives you a stronger negotiating position with Broadcom.

Compliance risks

End of perpetual support
Broadcom has significantly limited support for perpetual VMware licenses. Organizations still running on old versions risk missing security updates.
Limited contract freedom
Broadcom insists on multi-year contracts with limited exit options. Make sure to obtain legal advice on the contract terms before signing.

Frequently asked questions about VMware (Broadcom)

Frequently asked questions about VMware (Broadcom) licences and procurement.

What changes for existing VMware customers after the Broadcom acquisition?

Broadcom has abolished perpetual licenses, drastically reduced the partner program, and forced customers to switch to bundle subscriptions like VMware Cloud Foundation. Most customers see their costs rise significantly.

Is Proxmox a realistic alternative to VMware?

For many organizations, yes. Proxmox is open-source, has an active community, and a growing enterprise support offering. The migration effort is considerable but long-term savings can be substantial.