Friday, June 13, 2025

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Prepare for Legacy Support with VMware and Broadcom

Broadcom has been steadily growing its software business through strategic acquisitions, with the $69bn acquisition of VMware in 2023 being the latest milestone. Previous acquisitions of CA Technologies and Symantec have paved the way for Broadcom to expand its presence in the software market and target the Global 2000 customer base.

The acquisition of VMware has brought changes to software licensing and subscription models, causing concern among IT decision-makers about pricing and disruption. While some customers may consider shifting away from VMware, the legacy infrastructure and technical challenges associated with alternative hypervisors suggest that VMware’s presence is likely to remain strong in datacentres for the foreseeable future.

Despite the rise of container technology for cloud-native applications, VMware’s established position and “stickiness” in datacentres make it a reliable choice for older software deployments. As Broadcom focuses on high revenue and margins, it seems clear that VMware will continue to play a significant role in datacentre infrastructure in the long term.