VMware Users Eye Alternatives as Broadcom Tightens Control
Half of VMware users are planning to reduce their reliance on the virtualization pioneer’s products by 2028, according to a recent survey by independent analyst firm Virtified. This shift comes as users grapple with changes implemented by Broadcom following its $69 billion acquisition of VMware in November 2023 [1].
Broadcom’s Strategy Fuels User Discontent
The primary driver of this potential exodus is Broadcom’s strategy of primarily selling a complete private cloud bundle – Cloud Foundation 9 (VCF 9). Michael Warrilow, principal analyst at Virtified and a former Gartner analyst specializing in cloud and virtualization, notes that many VMware users are uncomfortable with this approach [3].
Concerns center around the cost of VCF 9, which some users find prohibitive, and the fact that it includes tools they don’t need or seek, adding unnecessary complexity. Users facing these issues are actively evaluating alternative virtualization platforms.
Cost Increases and Discounting Practices
The situation is further complicated by reports that Broadcom may be less willing to offer discounts to customers who indicate they are downsizing their VMware deployments. According to Warrilow, Broadcom may offer reduced or no discounts when it detects customers reducing their VMware footprint [3].
Migration away from VMware is challenging, particularly before the complete-of-support date for version 8.x products in October 2027. This may force many users to reluctantly adopt VCF 9 to maintain compliance.
Potential for License Audits and Limited Flexibility
For those who choose to continue using unsupported software past 2027, the risk of a license audit looms. Such audits could reveal a need for additional entitlements, potentially leading to Broadcom offering software at list price or with minimal discounts.
“Broadcom is hoping this all goes in the too hard basket and you do the upgrade,” Warrilow stated [3].
Reasons for Staying with VMware
Despite the challenges, some users may choose to remain with VMware due to factors such as a lack of suitable alternatives, an inability to migrate to the cloud, or a low risk appetite. There is as well the potential for increased density and lower license costs with VCF 9, as well as the possibility of improved engineering and a more unified product experience.
“There is the chance to get greater density and lower license costs,” Warrilow said. “And it is possible the engineering of the product will get better. There’s a lot less bickering in the Broadcom era, and potential for a more unified product.”
Competitive Landscape Shifts
Warrilow’s findings, based on a survey of 450 VMware users across 14 countries representing operations, infrastructure, architecture, and procurement teams at companies with over 500 employees, indicate that while VMware remains the market leader, competitors like Nutanix, Microsoft, and Red Hat are gaining ground [3].
Recent Developments in the Cloud Infrastructure Space
Recent industry activity highlights the evolving cloud infrastructure landscape:
- Nutanix recently launched an “Agentic AI solution” designed to enhance its AHV hypervisor, Kubernetes distribution, Enterprise AI platform, and Flow software-defined networking for AI agent development and deployment.
- Oracle now supports Broadcom’s bring-your-own-license (BYOL) scheme for the Oracle Cloud VMware Solution, allowing customers to rent bare-metal servers from Oracle and purchase VMware licenses directly from Broadcom.
- Arcfra, a Singaporean hyperconverged infrastructure vendor, released an upgrade to its Enterprise Cloud Platform claiming improved storage performance, positioning itself as a potential VMware alternative.
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