The potential impact of VMware’s contentious product changes on small and medium businesses

The potential impact of VMware’s contentious product changes on small and medium businesses



In the wake of Broadcom’s acquisition of VMware, significant changes have stirred controversy within the company. Alterations to licensing, distribution programs, and the partner program have caused confusion and chaos due to poor communication. VMware‘s recent blog post on new licensing policies spurred incorrect interpretations, particularly regarding the availability of key products such as vSphere and vSAN.

Matt Kimball of Moor Insights & Strategy criticized Broadcom for its communication missteps, emphasizing the importance of transparency and effective messaging. Concerns have arisen about the impact on customers, particularly in the MSP market, as the changes in software bundling could lead to higher costs and disruptions.

Small and medium-sized businesses may face challenges due to the reduced options resulting from Broadcom’s focus on enterprise clients. Steve Tuck of Oxide Computer highlighted the potential negative effects on customers requiring more tailored solutions. Despite the upheaval caused by the changes, some organizations are already exploring alternatives to VMware.

The partner community is also grappling with the new landscape, trying to ascertain who will remain in Broadcom’s favor. Forrester Research had projected that up to 20% of VMware customers may switch to other platforms, underlining the uncertainty facing the virtualization market.

As customers consider their options, vendors like Scale Computing are seizing the opportunity to offer alternatives to VMware. Companies like Virtuozzo stress the importance of selecting technology that offers comprehensive features and transparent billing to avoid additional costs.

The transition away from VMware will likely be a gradual process, with users evaluating their infrastructure and planning their migration paths over months or years. Despite the challenges, there are opportunities for vendors to capture market share by offering compelling alternatives. In the evolving landscape of the virtualization market, clear communication and customer-centric solutions are crucial for success.

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