VMware (Broadcom)

Virtualisation and cloud infrastructure, now part of Broadcom

IT Management & Infrastructure
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For · IT infrastructure teams and data centre administrators 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 resulted in drastic changes to the licensing model: perpetual licences have been discontinued, partner ecosystems have shrunk, and customers are forced to switch to expensive subscription bundles.
For many organisations, the move 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 purchase collectively or use a strong procurement partner have greater negotiating power.
Explore alternatives to gain leverage
Nutanix, Proxmox and Microsoft Hyper-V are serious alternatives. Exploring a migration seriously strengthens your negotiating position with Broadcom.

Compliance risks

End of perpetual support
Broadcom has significantly limited support for perpetual VMware licences. Organisations still running older versions risk missing security updates.
Limited contract flexibility
Broadcom insists on multi-year contracts with limited exit options. Ensure you obtain 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 cut the partner programme, and forced customers to switch to bundled 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 the long-term savings can be substantial.