Broadcom’s acquisition of VMware in late 2023 has resulted in significant price increases for many VMware customers. Reports indicate a 150%, 300%, and even 500% increase in VMware licensing costs. This abrupt change has left many customers scrambling to adjust to the new licensing model and pricing structure.
In response to backlash from existing customers, Broadcom has tried to clarify the new product and licensing model to help customers manage the transition. One significant change has been a revision of the channel partner structure, with Broadcom now focusing on a smaller number of value-added resellers and establishing direct relationships with its largest customers.
The new product structure bundles VMware products into different categories, simplifying the offerings but potentially causing customers to pay for products they do not need or use. Perpetual licenses are no longer an option as VMware shifts to a software-as-a-service model, aligning with the industry trend of replacing perpetual licenses with subscription licenses.
Organizations impacted by the VMware cost increases have several options to consider. They could absorb the price increases in the short term, align workloads with specific VMware product packages, or explore alternative hypervisors. Moving to the cloud, changing platforms to hyperconverged infrastructure, and evaluating the long-term strategy with regards to virtualization are also viable options.
Regardless of the chosen option, it is essential to make a long-term decision, considering the potential for further changes from Broadcom, the need for testing, and the impact on the overall technology stack. Preparation for price increases in other areas of the technology stack, such as AI investments and changes to licensing models, is also recommended.
As organizations navigate the changes in VMware pricing and licensing, it is crucial to assess options carefully, test solutions, refine decision models, and consider the implications for the future of their virtualization operating model and platform. Staying informed about trends in the technology industry and being proactive in exploring and evaluating potential solutions will be key to adapting to the evolving landscape.
Article Source
https://www.cio.com/article/2513389/VMware-licensing-and-pricing-hikes-what-options-do-you-have.html