Broadcom

Virtualisation & Cloud Infrastructure

IT Management & Infrastructure
Subscription

For · IT infrastructure teams and data centre managers at 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 conducted
The transition to VCF has a huge financial impact. Have an independent party calculate the Total Cost of Ownership including migration, training and operational costs of alternatives.
Negotiate collectively
Broadcom has fewer partners but more direct deals. Organisations that buy together or use a strong purchasing partner are in a stronger position when negotiating.
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 scaled back support for perpetual VMware licences. Organisations still running on older versions risk missing out on security updates.
Limited contract freedom
Broadcom pushes for multi-year contracts with limited exit options. Make sure you obtain legal advice on the contract terms before signing.

Frequently asked questions about Broadcom

Frequently asked questions about Broadcom licences and procurement.

What changes for existing VMware customers after the Broadcom acquisition?

Broadcom has abolished perpetual licences, drastically cut the partner programme, and forced customers to switch to bundle subscriptions 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.