VMware Explore In 2024, adopting or increasing the use of a proprietary computing architecture like IBM’s POWER is considered niche. However, IBM suggested replacing the VMware stack with its single-supplier stack in June.
IBM decided to make this move due to changes brought by Broadcom to the virtualization giant, shifting from perpetual licenses to subscriptions, changing pricing models, and bundling software with support.
IBM highlighted a customer expecting a 500% increase in VMware bills due to these changes.
Broadcom denies price increases, stating that their new bundles are cheaper and include previously separate support in subscriptions.
Gartner VP analyst Michael Warrilow predicts that most VMware customers will see a 200-500% increase in bills upon renewal.
It is disingenuous to think the vast majority of VMware customers will not be paying more per year.
Joseph Sweeney from IBRS reports organizations experiencing price increases of 200-450%.
Naveen Chhabra, principal analyst at Forrester, notes that VMware clients are considering alternatives due to uncertainty about future renewals and are exploring migration options.
Customers are hesitant to move away from VMware due to the risk of rip and replace projects and the lack of significant benefits from direct alternatives.
A leap in the dark
Broadcom promised additional R&D funding to enhance VMware’s Cloud Foundation hybrid cloud suite, but the progress has been limited. Despite delivering an upgrade in June 2024, customers are waiting to see more results of the investment.
Attendees at VMware Explore have questions about Broadcom’s strategy and its value proposition. Gartner’s Warrilow believes Broadcom needs to provide answers soon to justify the increased costs to customers.
Ready to pounce
If Broadcom fails to satisfy customers, competitors like Nutanix, Scale Computing, AWS, HPE, and others are ready to offer migration paths and alternative solutions. VMware users are advised to stay updated with the evolving landscape of virtualization options.
Stay tuned for updates from VMware Explore to understand the implications for VMware users and the future of virtualization technology.
