Customers re-examining VMware dependence
VMware has been the go-to virtualization platform for years, but Broadcom’s acquisition has pushed customers to reconsider their VMware dependence. A year into its VMware buy, Broadcom is at a critical point. By now, customers have had months to determine whether they’ll navigate VMware’s new landscape or opt for alternatives. Beyond dissatisfaction with the new pricing and processes under Broadcom, the acquisition has also served as a wake-up call about vendor lock-in. Small- and medium-size businesses (SMBs) are having the biggest problems navigating the changes, per conversations that Ars has had with VMware customers and analysts.
Speaking to The Register, Edwards claimed that migration from VMware is still modest. However, the coming months are set to be decision time for some clients. In a June and July survey that Veeam, which provides hypervisor backup solutions, sponsored, 56 percent of organizations were expecting to “decrease” VMware usage by July 2025. The survey examined 561 “senior decisionmakers employed in IT operations and IT security roles” in companies with over 1,000 employees in the US, France, Germany, and the UK.
Impact on migrations questioned
With the pain points seemingly affecting SMBs more than bigger clients, Broadcom’s latest move may do little to deter the majority of customers from considering ditching VMware.
Speaking with Ars, Rick Vanover, VP of product strategy at Veeam, said he thinks Broadcom taking fewer large VMware customers direct will have an “insignificant” impact on migrations, explaining:
Generally speaking, the largest enterprises (those who would qualify for direct servicing by Broadcom) are not considering migrating off VMware.
However, channel partners can play a “huge part” in helping customers decide to stay or migrate platforms, the executive added.
“Product telemetry at Veeam shows a slight distribution of hypervisors in the market, across all segments, but not enough to tell the market that the sky is falling,” Vanover said.
In his blog, Edwards argued that Tan is demonstrating a “clear objective to strip out layers of cost and complexity in the business, and return it to strong growth and profitability.” He added: “But so far this has come at the expense of customer and partner relationships. Has VMware done enough to turn the tide?”
Perhaps more pertinent to SMBs, Broadcom last month announced a more SMB-friendly VMware subscription tier. Ultimate pricing will be a big factor in whether this tier successfully maintains SMB business. But Broadcom’s VMware still seems more focused on larger customers.