VMware Users Plan to Reduce Usage as Broadcom Costs Rise: Survey
Half of VMware users intend to reduce their reliance on the virtualization software by 2028, according to a new analysis from independent firm Virtified. The shift is largely attributed to Broadcom’s current sales strategy, which mandates the purchase of the complete Cloud Foundation 9 (VCF 9) suite, rather than individual components.
Virtified principal Michael Warrilow, a former Gartner analyst specializing in cloud and virtualization technologies, explained that many VMware customers are balking at the cost and complexity of VCF 9. “Some users feel the cost is beyond their means,” Warrilow told The Register, “Others don’t seek all the tools in Cloud Foundation, or the complexity of operating them.” This dissatisfaction is driving organizations to evaluate alternative platforms for their virtual machine workloads.
While migrations are already underway, Warrilow cautioned that simply downsizing VMware estates may not necessarily translate into lower costs. He indicated that Broadcom has been known to offer reduced discounts – or none at all – to customers actively reducing their VMware footprint. The impending October 2027 end-of-support date for VMware version 8.x products presents a challenge, potentially forcing users to reluctantly adopt VCF 9 to maintain compliance.
Warrilow anticipates that some organizations will delay migration beyond the end-of-support date, aligning a move to a different virtualization platform with planned hardware refreshes. Those who continue to operate unsupported software risk facing license audits, where Broadcom may offer software at list price or with minimal discounts if additional entitlements are required. “Broadcom is hoping this all goes in the too hard basket and you do the upgrade,” Warrilow stated.
Still, not all VMware users are planning an exit. Warrilow noted that some organizations may be constrained by factors such as a lack of suitable alternatives, an inability to migrate to the cloud, or a low tolerance for risk. He likewise suggested that continued utilize of VMware could yield benefits, including increased density and lower license costs, as well as potential improvements to the product’s engineering under Broadcom’s ownership. “There is the chance to get greater density and lower license costs,” he said. “And it is possible the engineering of the product will get better. There’s a lot less bickering in the Broadcom era, and potential for a more unified product.” He conceded, however, that “right now VCF 9 includes stuff that people didn’t want unified.”
The analysis comes amid a flurry of activity in the virtualization and cloud infrastructure space. Nutanix recently launched an “Agentic AI solution” designed to enhance its AHV hypervisor and related software. Oracle, meanwhile, has begun supporting Broadcom’s bring-your-own-license scheme for its Oracle Cloud VMware solution, effectively renting bare-metal servers to VMware license holders. Singaporean vendor Arcfra has also released an upgrade to its Enterprise Cloud Platform, claiming significant improvements in storage performance, positioning it as a potential VMware alternative.
Warrilow’s findings are based on a survey of 450 VMware users across 14 countries, representing operations, infrastructure, architecture, and procurement teams within organizations employing over 500 people. He has also developed documents, termed “Loops,” that evaluate the primary alternatives to VMware, ranking VMware as the current market leader while acknowledging the growing competitiveness of Nutanix, Microsoft, and Red Hat.