VMware Workload Migration Accelerates as Customers Seek Alternatives to Broadcom Model

The virtualization market is undergoing a significant shift as organizations increasingly migrate workloads away from VMware, now a subsidiary of Broadcom. Driven by concerns over pricing, product bundling, and a perceived shift in focus away from smaller and medium-sized businesses (SMBs), a substantial portion of VMware customers are actively exploring and adopting alternative solutions. This trend is reshaping the competitive landscape and forcing VMware to adapt its strategy.

Growing Dissatisfaction and Migration Trends

Recent data indicates a clear acceleration in VMware workload migrations. According to a report by CloudBolt, 86% of respondents are actively reducing their VMware footprint. [1] This move is fueled by changes introduced by Broadcom following its acquisition of VMware, which have been described as unfavorable to SMBs. Gartner previously predicted that 35 percent of VMware workloads would migrate elsewhere by 2028. [1]

The CloudBolt survey reveals the extent of these migrations:

• 36% of participants have migrated 1–24% of their environment off of VMware.
• 32% have migrated 25–49%.
• 10% have migrated 50–74%.
• 2% have migrated 75% or more.
• 5% have not migrated from VMware at all.

Destination: Public Cloud and Hyper-V/Azure Stack

The primary destination for migrated workloads is public cloud infrastructure as a service (IaaS), with 72% of respondents choosing this path. Microsoft’s Hyper-V/Azure Stack is also gaining traction, attracting 43% of those migrating away from VMware. [1]

Challenges of Migration

Despite the growing desire to reduce VMware dependence, migration is not without its challenges. Organizations face complexities in managing multi-platform environments (52% reported this as a challenge) and skills gaps (33% reported this as a challenge). [1] These hurdles highlight the need for careful planning, investment in training, and potentially, the adoption of management tools that can simplify operations across diverse infrastructure.

Broadcom’s Strategy and Market Position

Broadcom appears to be aware of the churn and has structured its business model accordingly. According to CloudBolt’s report, Broadcom’s strategy isn’t necessarily to retain every customer, but rather to maximize value from those who remain on the platform while the market diversifies. [1] The company has seemingly calculated that it can remain profitable even with a degree of customer attrition.

VMware Cloud Foundation Updates

Broadcom (VMware) continues to invest in its VMware Cloud Foundation (VCF) platform. VCF 9.0, released in June 2025, is designed to support traditional, modern, and AI workloads with a consistent cloud operational model. [3] Key features of VCF 9.0 include streamlined self-service for developers, robust compliance tools, advanced networking with multi-tenant VPC services, and integrated security features. [3]

Broadcom (VMware) was also recognized as a Leader in the 2025 Gartner Magic Quadrant for Distributed Hybrid Infrastructure for the third consecutive year. [3]

Looking Ahead

The migration away from VMware is expected to continue as organizations prioritize flexibility, cost optimization, and alignment with their evolving business needs. While VMware is actively working to enhance its offerings and maintain its position in the market, the competitive landscape is becoming increasingly fragmented, presenting both challenges and opportunities for vendors and customers alike.