Broadcom’s VMware takeover: Navigating turbulent waters

Since Broadcom acquired VMware, there have been significant developments that VMware users and the IT industry now need to navigate.

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Broadcom’s acquisition of VMware in November 2023 ignited a fierce debate within the technology community. While some applauded the $69 billion deal

as a strategic move to streamline operations and simplify the virtualisation and cloud computing market, others voiced concern about its effects on VMware’s products and customers. In the short time since the takeover, there have been significant developments that VMware users and the IT industry now need to navigate. 

I’ve used VMware solutions myself and have seen firsthand how they can enhance business efficiency, agility and innovation through virtualisation and cloud technology. With products like VMware SD-WAN and VMware SASE consistently acknowledged for being reliable and able to cater to organisations with diverse infrastructure and operational requirements, it’s no surprise that VMware’s portfolio has been a popular choice for so many businesses and enterprises for so long.

However, since Broadcom assumed control of VMware, the VMware product landscape has been transformed, with two key announcements directly impacting existing customers.

Firstly, Broadcom’s introduction of a subscription-only model for most VMware products is a sea change for customers who have traditionally favoured perpetual licences. The shift eliminates the option of perpetual licences, potentially disrupting customers’ long-term investment planning and leading to higher costs in the form of recurring subscription fees.

Secondly, Broadcom’s decision to discontinue 56 standalone VMware products – including flagship offerings like vSphere, vSAN and NSX – has roiled VMware customers worldwide. For countless organisations, these products are the backbone of core IT functions such as virtualisation, storage and networking. Their discontinuation has left customers scrambling for alternatives and grappling with the gruelling task of migrating to other platforms.

Beyond the immediate concerns for customers, Broadcom’s acquisition of VMware has wide-ranging implications for the technology industry.

VMware’s virtualisation and cloud computing leadership fostered a vibrant ecosystem of partners, resellers and service providers. However, Broadcom’s restructuring efforts – including the termination of partner agreements and the introduction of an invitation-only partner programme – have disrupted these relationships, causing waves of uncertainty within the IT industry.

Furthermore, Broadcom’s focus on maximising revenue from enterprise customers risks alienating loyal small and medium-sized businesses (SMBs) and managed service providers (MSPs). The transition to subscription-based licensing models and the discontinuation of key VMware products may impact SMBs and MSPs disproportionately, limiting their access to VMware’s technologies and services and prompting them to look elsewhere for similar IT solutions.

As Broadcom continues to reshape VMware with streamlining initiatives and new product plans, customers will face more turbulent waters. Those who navigate the stormy conditions with care will emerge stronger. And fortunately, they don’t have to brave such challenges alone: BUI remains steadfast in its commitment to help people thrive in the evolving world of virtualisation and cloud computing.

From crafting tailored migration strategies to implementing robust cyber security measures and optimising network performance, BUI offers comprehensive solutions to enable performance and productivity in the digital era. Our expert technologists can provide the guidance and support that customers require as they adapt to Broadcom’s VMware changes.

If you’re wondering what’s next for your VMware technology stack, trying to make sense of the revamped licensing environment, or thinking about alternative virtualisation solutions, then contact BUI today. We can evaluate your IT set-up, take stock of what you have and what you need, and identify the best resources for your particular goals. With a trusted technology partner like BUI on your side, you can confidently chart a course for the future and get back to business as usual.

BUI National Sales Manager Paul Wallett has 20+ years of experience in the technology industry and an extensive background in business development, sales management and operations management.