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VMware by Broadcom: What customers can expect

March 1, 2024

For more than 25 years, VMware has been a global leader in providing software that transforms how the IT function of organisations provides support for the delivery of IT applications and services.

That quarter-century has been marked by constant innovation and change, from product packaging and licensing to strategic acquisitions by VMware—not to mention VMware’s own journey in being acquired, spun-off, and, as of November 2023, reacquired by Broadcom

Amid all of this change, one constant has been the transformative value VMware’s software has continued to deliver, as well as the tight relationships it has forged with both VMware users (who hasn’t attended a VMUG meeting at some point?) and independent partners like Triangle.

The completed acquisition of VMware by Broadcom and subsequent announcement of changes to product packaging and licensing has rightly caught the attention of VMware customers, partners, and the wider tech industry. But it’s important not to leap to inaccurate conclusions that VMware’s new ownership will only lead to increased cost and reduced choice for end users.

VMware’s planned move to a subscription licensing model has been in the works for years—long before its acquisition by Broadcom had begun—and VMware has clearly communicated this intent to both its customers and partners. 

When you consider that other global software vendors like Microsoft already switched to a subscription licensing model nearly ten years earlier, VMware’s transition is long overdue—and this fundamental change should enable a better experience for all its customers.

What to expect from the new licensing model

The use of a core-based metric is almost universal in the software industry. It aligns the licensing of VMware software deployed on physical servers with public, sovereign and private cloud environments, helping simplify one element of workload placement decision-making in this hybrid cloud world.

The new subscription based product packaging model features a select number of foundational bundles (remember vSOM?) to which your organisation can then add additional products and capabilities. 

These bundles are designed to provide additional capability while greatly reducing the complexity of managing multiple editions, licensing exceptions, and a seemingly infinite list of SKUs.

Bracing for change: What your business needs to know

VMware has announced the end of availability (EOA) of both perpetual software licences and support and subscription (SnS), including renewals. All VMware offerings will now be solely available as either subscriptions or term licences based on a core-count metric (vSAN also has a capacity metric).

There now four vSphere-based starting points, licensed per core:

    • VMware vSphere Standard
    • VMware vSphere Essentials Plus
    • VMware vSphere Foundation (VVF)
    • VMware Cloud Foundation (VCF)

Additional subscription-based add-ons are available depending on your choice of underlying vSphere subscription.

Amid these changes, VMware is also planning strategic investments that will allow the company to focus its efforts on delivering its core offerings. To that end, VMware’s end-user computing (EUC) and Carbon Black will be divested.

Triangle’s experts can help you navigate this period of transition

If you’re an existing VMware customer, it’s important to fully understand the implications of these changes and what options are available to your organisation going forward. This is particularly true if you are approaching:

  • The end of an existing support and subscription (SnS) contract;
  • The end of an Enterprise License Agreement (ELA); or
  • A new licensing requirement. 

That’s where Triangle’s 22 years of VMware partnership and expertise can be a valued resource for your company. Triangle became VMware’s first partner in Ireland in 2002, and as a Master Services Competency, Principal Partner, Triangle has received many accolades for its solution competency across the entire VMware ecosystem. 

As your business transitions to VMware by Broadcom, our experts are here to serve and advise you.  Get in touch today if you have any questions about what these changes mean for your organisation. 

 

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