In November 2023, IC design company Broadcom acquired VMware. The acquisition has already had far-reaching consequences for many VMware users, as Broadcom has made several changes to its operation and payment models. This will significantly impact businesses reliant on this software, especially those that rely heavily on VMware for their data centre operations.
Some organisations have chosen to stay with VMware despite the significant price shift, while others are considering incorporating a hybrid approach or abandoning VMware entirely for an alternative.
Below, we consider the changes and repercussions of this shift and what businesses must consider going forward.
Approaching price uncertainty
The most significant impact of Broadcom’s acquisition of VMware is its immediate pricing structure change. Broadcom has moved to a subscription model that has seen a marked increase in the price of VMware licenses. For some, these spikes in vendor pricing have been significant.
In addition, Broadcom has made other practice changes, including a ban on licence reselling and a refusal to maintain security conditions for perpetual licences. This behaviour has led the European Union’s antitrust regulators to announce an investigation into Broadcom’s sudden policy and pricing changes for VMware licences.
Many businesses were left unprepared for this price jump, especially smaller businesses with limited budgets. Because of this, it will be a paramount concern for those companies affected to work with an experienced IT service provider who can outline the pros and cons of different infrastructure modules based on the specific business’s needs and budget. Decision-makers must be aware of the evolving landscape and increased prices, as well as the long-term impact they will have so that they can accurately plan and budget accordingly.
Product reductions
Another concern that has surfaced in VMware’s transition is the disinvestment of serval VMware end-user products. For example, integrated offerings such as Horizon View and Workspace ONE, which were inherent components of the VMware infrastructure solutions, have been sold off, with more set for sale.
Before the divestment, these product licences were commonly bundled together with other VMware products to manage mobile devices and provide access to corporate resources. With Broadcom’s move to ‘de-bundle’ these offerings, businesses now face a challenge in licencing maintenance and increased costs. Companies now looking for alternative and hybrid models may also find their infrastructure has been left vulnerable to security breaches as alternate options are never a like-for-like option so businesses need to implement a new solution with an open mind.
Business leaders have been left with the unenviable task of identifying specific areas of need resulting from VMware’s product line divestment and deciding whether multiple independent tools may be a better solution or whether adopting an entirely new comprehensive platform would be the more beneficial and secure option.
Understanding your options
Determining whether to stick with VMware for the long term or switch will be challenging for business leaders. Decision-makers facing these increased expenses and product removals could benefit from working with a managed service provider who can help them consider all options. With the increased cost of additional staffing and training likely to be required due to these VMware changes, this is a prime opportunity for businesses to assess the cost benefits of using an MSP for their IT operations.
Find out more
If you are one of the many companies facing challenges due to VMware’s changes, please get in touch with us to discuss your options. You can contact Andrew Wayman at andrew.wayman@sdt.co.uk or call our office on +44 (0)1344 870062.