In November 2023, Broadcom completed its acquisition of VMware. Following this, the company announced a number of changes to support VMware’s new strategic direction. These post-acquisition changes have become a focal point of discussion for VMware customers and the broader tech community. Many organisations with VMware infrastructure are in the process of identifying and assessing the potential opportunities and challenges they are likely to face as a result of the active, impending, and prospective VMware changes.
Although the full scope of the changes is still unfolding, a major shift is occurring in the company's transition to subscription-based licensing. Here is a brief summary of the key changes:
Some customers have reported that following these post-acquisition changes have led to unexpected and significant increases in costs. Understandably, these accounts—coupled with the accelerated speed of change—have created trepidation among VMware customers and partners. Even Broadcom CEO, Hock Tan, has publicly acknowledged this "unease" in a company blog article.3
However, there are still a lot of unknowns regarding the changes to come—and just as there is concern for potential negative ramifications, the tide of change may also bring with it new advantages for VMware customers.
Now with the support of Broadcom's resources and 60+ years of expertise, VMware may have the opportunity to invest more heavily in innovation, leading to enhanced products and solutions that better meet customer needs.
Tech giant Broadcom has a history of purchasing innovation-driven companies and then enhancing their offerings through substantial improvements or the introduction of distinctive offerings, setting these companies apart from their rivals. It appears that Broadcom is continuing this strategy with VMware.
Just recently, Paul Turner, vice-president of product management and the leader of the VMware Cloud Foundation (VCF), shared that it will deliver a major update to its Cloud Foundation mid-2024.4 The expectation is that this update, along with the further major updates expected in early 2025, will make the package substantially easier to implement and engage with.
The transition to Broadcom's subscription model and portfolio streamlining represents a pivotal moment for VMware customers, requiring careful navigation. Amid this, the updates promised by Broadcom offer a glimpse into a potentially transformative future for VMware's offerings.
As a consultative partner to many organisations in Australia and beyond, we can help you navigate the complexities and uncertainties that lie ahead, ensuring you are well-informed and supported in your next steps.
Our team is on hand to help in a range of ways, from conducting an initial assessment of your current environment to gauge the impact of VMware's changes, to exploring your options alongside you, to providing advice tailored to your unique situation. Should you decide to transition to an alternative platform, rest assured that our team will be with you at every stage—planning, implementing, and providing ongoing support post-transition.
The acquisition of VMware by Broadcom is a landmark event with far-reaching implications. While the changes may seem daunting, you don't need to face them on your own. At Truis, we are committed to providing the insights, advice, and support you need to make the best decisions for your organisation.
Get in touch with us today to learn more about how, as your partner, we can help you move forward with confidence.
Sources:
1 vmware.com, “VMware by Broadcom Dramatically Simplifies Offer Lineup and Licensing Model,” accessed 20 March 2024.
2 vmware.com, “VMware End Of Availability of Perpetual Licensing and SaaS Services,” accessed 20 March 2024.
3 broadcom.com, “VMware By Broadcom: The First 100 Days,” accessed 4 April 2024.
4 theregister.com, “VMware by Broadcom plots pair of Cloud Foundation releases that will show off its strategy,” accessed 4 April 2024.