VMware has had a lasting impact on the IT landscape and is considered a pioneer of modern virtualisation. With its solutions such as vSphere, vSAN and NSX, VMware enables companies to utilise resources efficiently, manage workloads flexibly and build hybrid cloud environments. These technologies form the backbone of many IT infrastructures and are indispensable for the operation of business-critical applications. However, the takeover by Broadcom has changed the dynamics of the market.
Companies are facing new challenges: rising licence costs, changing product portfolios and uncertainties regarding VMware's long-term strategy. At the same time, opportunities are opening up, for example through the further development of hybrid cloud strategies or the use of new technologies such as Kubernetes on bare metal.
This article will help you understand the developments and adapt your infrastructure strategy for the future.
Technological developments at VMware by Broadcom
With the latest vSphere 8 Update 3, VMware offers innovations for companies that want to modernise their IT infrastructure.
Central innovations are:
- Support for two Data Processing Units (DPUs)
VMware vSphere 8 Update 3 adds dual-DPU support via the VMware vSphere Distributed Services Engine, which can significantly improve the security and resiliency of virtualised environments. Dual DPUs can be used in two configurations: The first configuration utilises two DPUs in active/standby high availability mode and ensures continuity in the event of DPU failures or uplink loss. Alternatively, two independent DPUs double the capacity per host. - ESXi Live Patching
The new live patching feature in ESXi allows customers to fix critical errors in the virtual machine execution environment and apply patches to all components without rebooting or VM evacuation. According to VMware, this process is non-disruptive for most virtual machines. - Independent Tanzu Kubernetes Grid (TKG)
VMware has introduced a new independent Tanzu Kubernetes Grid (TKG) service, decoupling TKG releases from vCenter releases. This change allows organisations to manage their Kubernetes environments more flexibly and benefit from the latest features without having to wait for vCenter updates. - Kubernetes Cluster Autoscaling
VMware introduces Kubernetes Cluster Autoscaling, a feature that enables Kubernetes clusters to dynamically resize. This new feature makes it possible to optimise resource usage and automatically adapt to changing workload requirements in their Kubernetes environments.
These developments show how VMware is helping companies to seamlessly integrate cloud-native technologies and AI applications into their existing infrastructures, making them fit for the future.
Cost increases and support losses: The new reality for VMware customers
Following the takeover of VMware by Broadcom, the everyday lives of many customers have changed noticeably. Product development and support in particular have been criticised. One drastic step was the discontinuation of the VMware vSphere Essentials Plus Kit (VVEP). Customers now have to switch to other products. The cheapest option, the vSphere Standard Edition, offers basic virtualisation functions, but lacks some of the advanced features of the former VVEP kit. Those wishing to retain all previous functions must switch to the more expensive VMware vSphere Enterprise Plus (VVP) Edition.
This change brings further challenges: while the VVEP kit offered a cost-effective solution for smaller companies, VVP is aimed at larger, more complex environments. For former VVEP users, this not only means higher costs due to the price of the VVP edition, but also due to the subscription model that is now required.
As part of this, the price for the VMware vSphere Foundation (VVF) package has been increased by 20 -35% (compared to the price a year ago). In return, customers can now benefit from an included vSAN contingent of 100GiB/core with 250GiB/core. The extent to which this is significant must be assessed on a case-by-case basis.
Broadcom has reorganised its support teams and cut jobs, as a result of which many customers have lost their previous contacts. Communication with the provider is often difficult, especially in licence negotiations. At the same time, product development has slowed down as Broadcom is focussing more on a few core products.
These changes are reflected in the reactions of customers. According to a Survey by Civo more than half of the companies surveyed are considering switching to alternatives. Almost 49% have already actively looked for other solutions, with open source platforms such as Proxmox or KVM increasingly coming into play. Another survey shows that 79% of customers would prefer their existing perpetual licences if they continued to receive support. However, the switch to subscription models is driving many to consider alternatives. The market trends clearly show that many companies are planning to move away from VMware in the long term. While some are still hesitating, others are using the next contract cycles to realign their IT strategy and become more independent.
Migration strategies and alternatives to VMware by Broadcom
Since the acquisition of VMware by Broadcom, there has been a trend towards migration to alternative virtualisation solutions. This change not only affects large corporations, but extends across the entire spectrum of the corporate landscape. While the specialised press often reports on extensive migrations with impressive numbers of virtual machines, changes are also taking place quietly.
Every day, companies of various sizes decide to leave their VMware infrastructure. These migrations include complex environments with thousands of virtual machines as well as smaller setups. Particularly noteworthy is the large number of medium-sized companies and smaller partners that are taking this step without attracting the attention of the general public.
The reasons for these migrations are diverse and range from cost considerations and concerns about future licence models to the desire for more flexibility and independence. Companies are carefully evaluating various alternatives, including open source solutions, cloud-based offerings and proprietary systems from other providers.
GGartner recommends that VMware customers plan the migration carefully and prepare for a lengthy process. According to their analysis a migration for organisations with at least 2,000 virtual machines can take between 18 and 48 months. They advise looking at VMware not only as a virtualisation provider, but also considering the network, storage and management aspects.
Regardless of the route you choose, you should start planning at an early stage. Evaluate your specific requirements and the complexity of your infrastructure. Bear in mind that migrating networks, storage and management tools is often more complex than changing the hypervisor itself.
Although the migration process can be challenging, companies such as Anexia report positive results. They were not only able to save costs, but also strengthen their technological sovereignty. If the necessary resources and expertise are not available, a partner should be brought in - ultimately, the success of a migration depends on careful planning, sufficient resources and a clear strategy.
Impact on the channel and partnerships
Broadcom had restructured the VMware partner programme. The company cancelled all existing VMware partner agreements and introduced a new invitation-only ‘Broadcom Advantage Partner Program’. This change involves new obligations and could force many long-standing VMware partners to look for alternatives. A clear sign of this is the decision by Ingram Micro, one of the world's largest IT distributors, to end its business relationship with Broadcom and VMware.
Since January 2025, Ingram Micro no longer does business with Broadcom and only works with VMware to a limited extent in selected regions. This decision follows failed negotiations between Ingram Micro and Broadcom.
The changes in the partner ecosystem have a direct impact on customers. After the takeover, Broadcom planned to look after 2000 top customers directly itself. Now the plan has changed and the number of directly supported customers will be reduced from 2000 to a strategically selected group of 500. The customer group thus released could then be taken over by the partners, to their commercial advantage. This once again shows the uncertainty in the planning.
Smaller partners and SMB customers could be left behind as Broadcom focuses on partners that can offer global expertise and value-added services. This upheaval in the channel could lead to delays in support and licence renewals. Customers should therefore rethink their IT strategy and possibly look for alternative solutions or new partners that fulfil their requirements.
Status of the hyperscalers
The major cloud providers Amazon Web Services (AWS), Google Cloud Platform (GCP) and Microsoft Azure have further developed their VMware offerings in recent months and created new opportunities for companies that want to migrate their VMware workloads to the cloud. However, the three major hyperscalers have reacted differently to the new circumstances.
Amazon Web Services (AWS) went through a turbulent phase. Firstly, Broadcom prohibited Amazon from reselling VMware Cloud. This decision caused an uproar in the industry. But this changed: AWS recently presented the Amazon Elastic VMware Service (EVS), which is intended to enable customers to operate VMware Cloud Foundation (VCF) directly in their Amazon Virtual Private Cloud. AWS plans to gradually introduce EVS in various regions. With EVS, AWS is positioning itself as a bridge builder between traditional VMware environments and modern cloud services.
Google Cloud Platform (GCP) took a different approach. It opened up its VMware Engine for the new VCF licences. Google Cloud VMware Engine (GCVE) offers a dedicated private cloud on the Google infrastructure that includes the complete VMware Cloud Foundation stack. This means that familiar tools such as vSphere, vSAN, NSX and vCenter can be used without changing familiar workflows. This strategy allows users to seamlessly move their workloads between on-premises environments and the Google Cloud. Google has also adjusted the pricing structure for GCVE and now offers different options. You can choose between fully licensed models or use your own portable VMware licences. GCP is thus positioning itself as a flexible partner for companies that want to take their VMware investments into the cloud.
Microsoft Azure also concluded an agreement with VMware by Broadcom. Subscribers to the VMware Cloud Foundation Suite (VCF) can now use their licences on Azure VMware Solution (AVS). Azure also offers flexible purchase options for AVS. You can choose between fully licensed models or use your own portable VMware licences. This partnership strengthens Azure's position in the VMware ecosystem and gives customers more options for their hybrid cloud strategies.
Despite initial turbulence, all three major providers have found ways to integrate VMware by Broadcom technologies into their services. For users, this means more flexibility in choosing their cloud strategy, but also the need to carefully scrutinise the different offerings. Regardless of which provider you choose, these developments show that the major cloud providers are continuing to invest in VMware solutions and want to help companies modernise their IT infrastructure.
Future prospects and strategic considerations
With VMware, Broadcom is pursuing a clear strategy of focussing and targeted investment. Following the acquisition, Broadcom has announced that it will invest two billion US dollars annually in research and development. The aim is to further develop VMware products and better support companies in the use of private and multi-cloud solutions. Broadcom is focussing on a small number of core products and streamlining its portfolio to increase efficiency and simplify administration for customers. At the same time, Broadcom emphasises the importance of data sovereignty, especially in Europe, where data protection laws are playing an increasingly important role.
In the long term, several trends will shape virtualisation and cloud infrastructure. Hybrid and multi-cloud strategies are gaining in importance as companies increasingly combine private and public clouds to maximise flexibility and scalability. At the same time, the focus is shifting towards cloud-native technologies, containers and Kubernetes, which enable more efficient application development. Nevertheless, virtualisation remains a central component of modern IT infrastructures, especially for traditional applications that cannot be easily containerised.
For you as an IT decision-maker, this means: The future lies in the combination of virtualisation and cloud-native approaches. A clear strategy that integrates both technologies will be crucial in order to meet the requirements of a dynamic market.
Claranet stands by your side in times of change
The transition from VMware to other platforms or models can involve considerable effort. According to a Gartner analysis, the cost of a migration can be between 300 and 3,000 US dollars per virtual machine, depending on the complexity of your environment and the solutions used. According to Gartner, these costs arise from analysing existing systems, adapting workloads and implementing new technologies. Without a clear strategy and experienced support, this process can be time-consuming and expensive.
With Claranet at your side, you reduce the challenges considerably. We offer you a structured approach that takes your specific requirements into account. Our modular service model allows you to choose exactly the support you need - be it planning, implementing or optimising your new infrastructure. Our expertise allows us to accelerate the migration process and ensure that your systems are back up and running quickly.
Claranet has established itself as a trusted partner for cloud migrations and hybrid infrastructures. Our team has extensive experience in planning and implementing complex transformation projects. From the initial analysis and strategy development through to the complete migration, we are with you every step of the way on your cloud journey.