VMware Acquistion by Broadcom

Broadcom acquired VMware in 2023 and announced many changes to the existing VMware products and partner programs. Some of the fundamental changes announced are below.

Licensing: VMware ended the perpetual licensing and moved to subscription-based pricing. VMware will no longer support subscription renewals for perpetual offerings.

Portfolio Consolidation: VMware has streamlined its product portfolio, reducing it to just four key products. This strategic move will allow VMware to focus on these core products and deliver better value to our customers.

Partner Program: VMware ended and renewed the old partner program with a new one in Feb 2024. Broadcom significantly reduced the number of authorized VMware reseller partners. VMware invited around 18,000 from 25,300 partners. Broadcom also started managing its top 2,000 customers by itself, bypassing partners.

Disinvestment: Broadcom sold its end-user computing division to KKR for 4 billion.

Price increase: Several analysts from Forrester and Gartner have mentioned that VMware has increased the price for its product in the range of 2X to 10X.

Option for customers

Move to another Hypervisor: The clients could move to another hypervisor, Nutanix, Red Hat Virtualization, or Hyper-V.

Moving to the public cloud: Enterprises can think of moving all the inventory into the public cloud.

Devirtualization: According to Gartner, challenges with VMware would force some enterprises to move their large or dedicated server VMs to a physical host.

Opportunity

With many customers worldwide scratching their heads about these changes, this presents a significant opportunity for any tech company to offer managed and professional services on VMware and the cloud.

Source: crn.com cio.com blogs.vmware.com