Broadcom

Virtualization & 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 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 reconsideration of VMware strategies among enterprise customers worldwide.

Purchasing Considerations

Have an independent TCO analysis conducted
The move 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 jointly or use a strong procurement partner have a stronger position in negotiations.
Explore alternatives as leverage
Nutanix, Proxmox and Microsoft Hyper-V are serious alternatives. Thoroughly exploring a migration gives you a stronger negotiating position with Broadcom.

Compliance Risks

End of perpetual support
Broadcom has severely restricted support for perpetual VMware licenses. Organisations still running older versions risk missing out on security updates.
Limited contract freedom
Broadcom is pushing for multi-year contracts with limited exit options. Be sure to seek legal advice on contract terms before signing.

Frequently Asked Questions about Broadcom

Frequently asked questions about Broadcom licenses and purchasing.

What changes for existing VMware customers after the Broadcom acquisition?

Broadcom abolished perpetual licenses, drastically reduced the partner programme, 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 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.