VMware (Broadcom)

Virtualisation & cloud infrastructure

IT Management & Infrastructure
Subscription

For · IT infrastructure teams and data centre administrators in medium and large organisations

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VMware, part of Broadcom since 2023, is the market leader in server virtualisation and cloud infrastructure. The acquisition by Broadcom has led to drastic changes in the licensing model: perpetual licences have been abolished, partner ecosystems have been reduced, and customers are forced to switch to expensive subscription bundles.
For many organisations, the shift to VMware Cloud Foundation (VCF) means a cost increase of 200-600% compared to the previous situation. This has led to a widespread reconsideration of VMware strategy among enterprise customers worldwide.

Procurement considerations

Have an independent TCO analysis carried out
The transition to VCF has a massive 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. Organisations that procure jointly or employ a strong procurement partner are in a stronger position during negotiations.
Explore alternatives as leverage
Nutanix, Proxmox, and Microsoft Hyper-V are serious alternatives. Seriously exploring a migration gives you stronger negotiating power with Broadcom.

Compliance risks

End of perpetual support
Broadcom has severely restricted support for perpetual VMware licences. Organisations still running older versions risk missing out on security updates.
Limited contract freedom
Broadcom insists on multi-year contracts with limited exit options. Ensure you seek legal advice on 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 licences, drastically reduced the partner programme, and forced customers to switch to subscription bundles such as VMware Cloud Foundation. Most customers see their costs rise significantly.

Is Proxmox a realistic alternative to VMware?

For many organisations, 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.