During his keynote at VMware Explore, Broadcom CEO Hock Tan expressed that many IT teams have been disappointed by migration challenges and unpredictable pricing in the public cloud over the past decade. As a solution, he promoted VMware by Broadcom as a reliable private cloud option based on VMware’s established virtualized technology.
Despite Tan’s pitch, analyst Naveen Chhabra from Forrester Research indicated that some VMware customers remain skeptical. Following Broadcom’s acquisition of VMware in late 2023, customers are now required to purchase subscription bundles that include software previously available individually with perpetual licenses. This change has left many feeling uncertain about future costs and tied to specific purchases.
Tan emphasized the simplicity and effectiveness of Broadcom’s VMware offerings, including VMware Cloud Foundation and vSphere Foundation. He highlighted upcoming releases like VCF 9 and the benefits of automation and performance improvements. While Broadcom aims to streamline its products and services, customers may feel hesitant due to contract changes and potential price hikes.
Despite some customers considering alternatives, a survey conducted at a recent event showed that many still plan to stick with VMware, while others are exploring different options like Nutanix Acropolis Hypervisor. Third-party support providers, like Rimini Street, have also seen an increase in interest from VMware customers seeking alternatives or transition assistance.
Ultimately, the decision to stay with Broadcom’s VMware or look for alternatives is a complex one for customers. While some appreciate the standardization of services and products offered by Broadcom, others may be hesitant about the company’s subscription bundling model. As the industry evolves, customers may need to weigh the benefits and drawbacks of staying with VMware or exploring other options.