Three Years After Broadcom Acquisition, VMware Customers Opt for ‘Diversification’ Over ‘Defection’ — BigGo Finance

Three years after Broadcom completed its acquisition of VMware, South Korean enterprise customers are choosing a “diversification strategy” over wholesale defection amid sweeping changes to licensing policies. The approach: keep core systems on VMware while migrating development and non-critical workloads to alternative platforms first.

Companies facing multi-year contract renewals are actively evaluating alternative virtualization platforms to reduce subscription costs. However, because moving transaction, production, and customer service workloads all at once carries the risk of service disruption, they are maintaining minimal contracts to ensure stability while exploring the feasibility of transitioning non-critical workloads.

Licensing Policy Changes Drive Cost Burden

Broadcom completed its VMware acquisition in November 2023 and subsequently halted new perpetual license sales and renewals of existing maintenance contracts. Previously, customers could buy a license once and use…