Introduction - Broadcom's VMware Acquisition
In January 2024, Broadcom announced a series of major changes regarding VMware, sparking strong reactions within the community of users, partners, and industry analysts. These changes include the transition to subscription-based licensing, simplification of the product offering, and the replacement of VMware's partnership program with an invitation-only program. Accompanied by controversies, these developments mark a decisive turning point for VMware's customers and partners.
Transition to Subscription Licensing
Broadcom announced the end of perpetual VMware license sales, marking a complete transition to subscription-based and term licenses. This move is part of a strategy to simplify the product offering and meet market demand for a subscription consumption model. Existing customers can continue to use their perpetual licenses with active support contracts, but the sale of new perpetual licenses and renewals for support and subscription (SnS) for these offerings has ended (VMware by Broadcom - Transformation des affaires) & (VMware Blog).
Simplification of the Offering
Broadcom has streamlined VMware's product offerings to two main solutions: VMware Cloud Foundation and VMware vSphere Foundation. This simplification aims to make VMware products more accessible and affordable, with a 50% reduction in the previous subscription price for VMware Cloud Foundation and the introduction of improved support service levels (VMware by Broadcom - Transformation des affaires).
The VMware article from January 22, 2024, provides additional details on this simplification, including the inclusion of Tanzu Kubernetes Grid in VMware vSphere Foundation and the availability of optional advanced add-ons to address specific needs such as security, storage, and disaster recovery (VMware Blog)​​.
End of the VMware Partnership Program
Broadcom announced the termination of the existing VMware partnership program, replacing it with an invitation-only Broadcom Advantage Partner Program. This decision aims to simplify bundled offerings and increase service revenue opportunities for partners, but it surprised many VMware partners, some expressing concerns and confusion about the details of the new program and their future status (The Register)​​.
Controversies and Reactions
The announced changes have triggered controversies and mixed reactions. Customers have reported license cost increases of up to 1200%, raising concerns about affordability and cost management for businesses and organizations, particularly in sensitive sectors like education, where a UK university faces a 1250% increase for VMware support renewal (IT Asset Management).
The clarification provided by the VMware article of January 22, 2024, was an attempt to address these concerns, emphasizing VMware's commitment to supporting current customers and facilitating the transition to the new subscription-based offerings (VMware Blog)​​​​.
Conclusion
The changes announced by Broadcom regarding VMware represent a significant evolution in how VMware products will be sold, supported, and used. While these changes may offer benefits in terms of simplification and predictability for some customers, they also raise challenges and concerns, particularly regarding costs, access, and partnership management. The update provided by the VMware article of January 22, 2024, shows a willingness to respond to customer and partner feedback, highlighting the importance of clear communication and ongoing support during this transition period.
On a personal note, I'm not sure if ending my article with my usual "Enjoy 😎" is appropriate... we're still unsure about what the future holds... On my end, I'm currently learning about Proxmox to migrate my homelab from the "Free standalone ESXi" version to Proxmox.
Best,
AlexIn Tech