VMware: Difference between revisions
Re-archived 1 citation(s) from archive.today to web.archive.org using CRWCitationBot |
rewrote the stub into a full company page. added company history, the perpetual-license to subscription changes, the at&t/tesco/dutch lawsuits, and what happened to free esxi and workstation/fusion. dropped the reddit cite and the incorrect "esxi is based on red hat" line, added a couple primary-source screenshots |
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{{CompanyCargo | {{CompanyCargo | ||
|Description= | |Description=Broadcom ended VMware perpetual licenses and forced subscriptions; price hikes of 800% to 1,500% and cease-and-desist letters followed | ||
|Founded=1998 | |Founded=1998 | ||
|Industry=Cloud, Information Technology, Virtualization | |Industry=Cloud, Information Technology, Virtualization | ||
|Logo=Vmware.svg | |Logo=Vmware.svg | ||
|ParentCompany=Broadcom | |ParentCompany=Broadcom Inc. | ||
|Type=Subsidiary | |Type=Subsidiary | ||
|Website=https://www.vmware.com | |Website=https://www.vmware.com | ||
}} | }} | ||
''' | '''VMware''' is an enterprise virtualization software company that has been a subsidiary of [[Broadcom Inc.|Broadcom]] since November 2023.<ref name="broadcom-complete">{{Cite web |title=Broadcom Completes Acquisition of VMware |url=https://investors.broadcom.com/news-releases/news-release-details/broadcom-completes-acquisition-vmware |website=Broadcom Inc. |date=2023-11-22 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20251217124315/https://investors.broadcom.com/news-releases/news-release-details/broadcom-completes-acquisition-vmware |archive-date=2025-12-17}}</ref> After the takeover, Broadcom stopped selling perpetual licenses, moved existing customers onto subscriptions, & began sending cease-and-desist letters demanding that perpetual-license holders without active support contracts stop installing patches & updates.<ref name="business-transformation">{{Cite web |title=VMware by Broadcom Dramatically Simplifies Offer Lineup and Licensing Model |url=https://news.vmware.com/company/vmware-by-broadcom-business-transformation |website=VMware News |date=2023-12-11 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20240514220844/https://news.vmware.com/company/vmware-by-broadcom-business-transformation |archive-date=2024-05-14}}</ref><ref name="ars-cease">{{Cite news |last=Harding |first=Scharon |title=VMware perpetual license holders receive cease-and-desist letters from Broadcom |url=https://arstechnica.com/gadgets/2025/05/broadcom-sends-cease-and-desist-letters-to-subscription-less-vmware-users/ |work=Ars Technica |date=2025-05-07 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20251013130617/https://arstechnica.com/gadgets/2025/05/broadcom-sends-cease-and-desist-letters-to-subscription-less-vmware-users/ |archive-date=2025-10-13}}</ref> Customers reported annual cost increases of 800% to 1,500%, with AT&T alleging a 1,050% rise, & the changes drew lawsuits in the United States, the United Kingdom, & the Netherlands.<ref name="prices-techradar">{{Cite web |title=Broadcom has allegedly hiked VMware costs between 800 and 1,500% |url=https://www.techradar.com/pro/broadcom-has-allegedly-hiked-vmware-costs-between-800-and-1-500-percent |website=TechRadar |date=2025-05-23 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20250915160445/https://www.techradar.com/pro/broadcom-has-allegedly-hiked-vmware-costs-between-800-and-1-500-percent |archive-date=2025-09-15}}</ref><ref name="att-register">{{Cite web |last=Sharwood |first=Simon |title=AT&T claims VMware offered it a 1,050 percent price rise |url=https://www.theregister.com/2024/10/01/att_broadcom_filings_update/ |website=The Register |date=2024-10-01 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20251128045252/https://www.theregister.com/2024/10/01/att_broadcom_filings_update/ |archive-date=2025-11-28}}</ref><ref name="att-settle" /><ref name="tesco" /><ref name="dutch" /> | ||
==Consumer-impact summary== | |||
* '''End of perpetual licenses.''' On December 11, 2023, Broadcom stopped selling perpetual VMware licenses & discontinued support renewals for existing ones, collapsing the lineup into a few subscription bundles.<ref name="business-transformation" /> Software bought outright can't be updated unless the owner discards the perpetual license they paid for & buys a subscription. | |||
* '''Price increases.''' AT&T alleged Broadcom offered it a 1,050% price rise.<ref name="att-register" /> For many customers, reported cost increases ranged from 800% to 1,500%.<ref name="prices-techradar" /> | |||
* '''Cease-and-desist letters and audits.''' Beginning in 2025, Broadcom sent legal notices ordering perpetual-license holders without active support to remove any patches, bug fixes, or upgrades installed after their support expired, then followed with software audits.<ref name="ars-cease" /> | |||
* '''Litigation.''' AT&T sued in August 2024 & settled in November 2024;<ref name="att-settle">{{Cite web |title=Broadcom, AT&T reach settlement in VMware legal dispute |url=https://www.ciodive.com/news/broadcom-att-vmware-settlement-licensing-support-lawsuit/733763/ |website=CIO Dive |date=2024-11-22 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20250814074513/https://www.ciodive.com/news/broadcom-att-vmware-settlement-licensing-support-lawsuit/733763/ |archive-date=2025-08-14}}</ref> Tesco sued for £100 million in September 2025;<ref name="tesco">{{Cite web |title=Supermarket giant Tesco sues VMware for breach of contract |url=https://www.theregister.com/2025/09/03/tesco_sues_vmware_broadcom_computacenter/ |website=The Register |date=2025-09-03 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20251223102412/https://www.theregister.com/2025/09/03/tesco_sues_vmware_broadcom_computacenter/ |archive-date=2025-12-23}}</ref> a Dutch court ordered Broadcom to keep supporting the national infrastructure agency Rijkswaterstaat after an 85% price hike;<ref name="dutch">{{Cite web |title=Dutch court forces Broadcom to support VMware migration after 85% price hike backlash |url=https://www.networkworld.com/article/4015489/dutch-court-forces-broadcom-to-support-vmware-migration-after-85-price-hike-backlash.html |website=Network World |date=2025-06-30 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20250911222039/https://www.networkworld.com/article/4015489/dutch-court-forces-broadcom-to-support-vmware-migration-after-85-price-hike-backlash.html |archive-date=2025-09-11}}</ref> and VMware sued Siemens in March 2025 for using unlicensed copies.<ref name="siemens">{{Cite web |title=VMware sues Siemens for using unlicensed software |url=https://www.theregister.com/2025/03/26/vmware_sues_siemens_for_using/ |website=The Register |date=2025-03-26 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20251128045252/https://www.theregister.com/2025/03/26/vmware_sues_siemens_for_using/ |archive-date=2025-11-28}}</ref> | |||
== | ==Background== | ||
VMware was founded in 1998 in Palo Alto, California, and shipped its first product, VMware Workstation, in 1999, bringing x86 virtualization to the desktop.<ref name="itpro">{{Cite web |title=Everything you need to know about VMware |url=https://www.itpro.com/virtualisation/29279/everything-you-need-to-know-about-vmware |website=IT Pro |access-date=2026-06-15 |archive-url=http://web.archive.org/web/20260215200548/https://www.itpro.com/virtualisation/29279/everything-you-need-to-know-about-vmware |archive-date=2026-02-15}}</ref> EMC Corporation announced its acquisition of VMware, a cash deal valued at about $635 million, in December 2003.<ref name="emc-sec">{{Cite web |title=EMC to Acquire VMware, Inc. (Form 425) |url=https://www.sec.gov/Archives/edgar/data/930885/000095013503006035/b48830eve425.htm |website=U.S. Securities and Exchange Commission |date=2003-12-15 |access-date=2026-06-15}}</ref> Dell Technologies later gained control of VMware & spun it back out as an independent company on November 1, 2021, divesting its 81% equity stake.<ref name="dell-spinoff">{{Cite web |title=Dell Technologies Announces Completion of VMware Spin-off |url=https://www.prnewswire.com/news-releases/dell-technologies-announces-completion-of-vmware-spin-off-301413240.html |website=PR Newswire |date=2021-11-01 |access-date=2026-06-15 |archive-url=http://web.archive.org/web/20260507201839/https://www.prnewswire.com/news-releases/dell-technologies-announces-completion-of-vmware-spin-off-301413240.html |archive-date=2026-05-07}}</ref> Broadcom announced its acquisition of VMware in May 2022 in a deal valued at about $61 billion & completed the purchase on November 22, 2023.<ref name="cnet-61b">{{Cite web |title=Broadcom to Acquire VMware for $61 Billion |url=https://www.cnet.com/tech/computing/broadcom-to-acquire-vmware-for-61-billion/ |website=CNET |date=2022-05-26 |access-date=2026-06-15}}</ref><ref name="broadcom-complete" /> | |||
==Incidents== | ==Incidents== | ||
This is a list of | This is a list of consumer-protection incidents this company is involved in. Any not listed here can be found in the [[:Category:{{FULLPAGENAME}}|{{PAGENAME}} category]]. | ||
=== | |||
{{Main|VMware | ===Licensing change since the Broadcom acquisition=== | ||
{{Main|VMware licensing change since acquisition by Broadcom}} | |||
[[ | Broadcom ended perpetual VMware licensing, required customers to move to subscriptions, & enforced the change through the software's [[End-user license agreement|license terms]], sending cease-and-desist letters to perpetual-license holders who kept patching unsupported software.<ref name="ars-cease" /> The licensing changes also drew antitrust scrutiny, including a monopoly investigation by Japan's Fair Trade Commission.<ref name="japan-ftc">{{Cite web |title=VMware investigated by Japanese antimonopoly agency: reports |url=https://www.theregister.com/2024/09/25/japan_vmware_broadcom_monopoly_investigation/ |website=The Register |date=2024-09-25 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20251125091553/https://www.theregister.com/2024/09/25/japan_vmware_broadcom_monopoly_investigation/ |archive-date=2025-11-25}}</ref> | ||
[[File:Broadcom VMWare cease and desist notice.png|thumb|center|upright=2.4|alt=Scan of a Broadcom Notice of Expiration of Support letter sent to a VMware perpetual-license customer.|A Broadcom notice of expiration of support sent to a VMware perpetual-license customer demands that the customer stop using updates and patches issued after its support contract expired.<ref name="ars-cease" /><ref name="imgur-cease">{{Cite web |date=2025-04-16 |title=Notice of Expiration of Support by Broadcom |url=https://imgur.com/FbrdQya |url-status=live |archive-url=http://web.archive.org/web/20250513083638/https://imgur.com/FbrdQya |archive-date=2025-05-13 |access-date=2026-06-15}}</ref>]] | |||
==Products== | ==Products== | ||
{{ | * '''VMware vSphere''' and its '''ESXi''' hypervisor are the core server-virtualization platform. Broadcom discontinued the free edition of ESXi in February 2024, then restored it in April 2025.<ref name="esxi-killed">{{Cite web |last=Sharwood |first=Simon |title=Broadcom terminates VMware's free ESXi hypervisor |url=https://www.theregister.com/2024/02/13/broadcom_ends_free_esxi_vsphere/ |website=The Register |date=2024-02-13 |access-date=2026-06-15 |archive-url=http://web.archive.org/web/20260313150146/https://www.theregister.com/2024/02/13/broadcom_ends_free_esxi_vsphere/ |archive-date=2026-03-13}}</ref><ref name="esxi-revived">{{Cite web |last=Sharwood |first=Simon |title=VMware revives its free ESXi hypervisor in an utterly obscure way |url=https://www.theregister.com/2025/04/14/vmware_free_esxi_returns/ |website=The Register |date=2025-04-14 |access-date=2026-06-15 |archive-url=http://web.archive.org/web/20260426202914/https://www.theregister.com/2025/04/14/vmware_free_esxi_returns/ |archive-date=2026-04-26}}</ref> | ||
* | * '''VMware Cloud Foundation''' (VCF) is the bundled subscription stack Broadcom steers customers toward after collapsing the former product lineup into a handful of bundles in December 2023.<ref name="business-transformation" /> | ||
* '''VMware Workstation Pro''' and '''VMware Fusion''' are desktop hypervisors for Windows, Linux, and macOS. Broadcom made both free for personal, educational, & commercial use on November 11, 2024.<ref name="ws-fusion-free">{{Cite web |title=VMware Fusion and Workstation are Now Free for All Users |url=https://blogs.vmware.com/cloud-foundation/2024/11/11/vmware-fusion-and-workstation-are-now-free-for-all-users/ |website=VMware Cloud Foundation Blog |date=2024-11-11 |access-date=2026-06-15 |archive-url=http://web.archive.org/web/20260502173103/https://blogs.vmware.com/cloud-foundation/2024/11/11/vmware-fusion-and-workstation-are-now-free-for-all-users/ |archive-date=2026-05-02}}</ref> | |||
* '''VMware Horizon''' & the rest of the End-User Computing line are no longer VMware products. Broadcom sold the division to the investment firm KKR, and it now operates as a standalone company, Omnissa.<ref name="omnissa">{{Cite web |title=Introducing Omnissa, the former VMware End-User Computing business |url=https://blogs.vmware.com/euc/2024/04/introducing-omnissa-the-former-vmware-end-user-computing-business.html |website=VMware End-User Computing Blog |date=April 2024 |access-date=2026-06-15 |archive-url=http://web.archive.org/web/20260208162321/https://blogs.vmware.com/euc/2024/04/introducing-omnissa-the-former-vmware-end-user-computing-business.html |archive-date=2026-02-08}}</ref> | |||
== | <gallery mode="packed" heights="200"> | ||
File:VMware Fusion and Workstation free announcement.png|VMware's own blog post announcing that Workstation Pro and Fusion became free for personal, educational, and commercial use on November 11, 2024.<ref name="ws-fusion-free" /> | |||
File:VMware EUC Omnissa divestiture announcement.png|VMware's blog post introducing Omnissa, the former VMware End-User Computing business sold to KKR.<ref name="omnissa" /> | |||
</gallery> | |||
==Alternatives== | ==Alternatives== | ||
Customers leaving VMware have moved to both open-source & commercial platforms. Proxmox VE is an open-source server virtualization platform from Proxmox Server Solutions GmbH, with optional paid support subscriptions.<ref name="proxmox">{{Cite web |title=Company |url=https://www.proxmox.com/en/about/about-us/company |website=Proxmox Server Solutions GmbH |access-date=2026-06-15 |archive-url=http://web.archive.org/web/20260529161445/https://www.proxmox.com/en/about/about-us/company |archive-date=2026-05-29}}</ref> QEMU is a free, open-source machine emulator and virtualizer.<ref name="qemu">{{Cite web |title=QEMU |url=https://www.qemu.org/ |website=QEMU |access-date=2026-06-15 |archive-url=http://web.archive.org/web/20260609142659/https://www.qemu.org/ |archive-date=2026-06-09}}</ref> On the commercial side, analysts have called Nutanix the most direct challenger to VMware in hyperconverged infrastructure.<ref name="nutanix">{{Cite web |title=VMware by Broadcom changes to continue in 2025 |url=https://www.techtarget.com/searchdatacenter/news/366617362/VMware-by-Broadcom-changes-to-continue-in-2025 |website=TechTarget |date=2025-01-14 |access-date=2026-06-15}}</ref> | |||
==See also== | |||
* [[Broadcom Inc.]] | |||
* [[VMware licensing change since acquisition by Broadcom]] | |||
==References== | ==References== | ||
{{reflist}} | {{reflist}} | ||
[[Category:{{PAGENAME}}]] | [[Category:{{PAGENAME}}]] | ||
[[Category:Virtualization software]] | [[Category:Virtualization software]] | ||
Latest revision as of 04:45, 15 June 2026
| Basic information | |
|---|---|
| Founded | 1998 |
| Legal Structure | Subsidiary |
| Industry | Cloud, Information Technology, Virtualization |
| Also known as | |
| Official website | https://www.vmware.com |
VMware is an enterprise virtualization software company that has been a subsidiary of Broadcom since November 2023.[1] After the takeover, Broadcom stopped selling perpetual licenses, moved existing customers onto subscriptions, & began sending cease-and-desist letters demanding that perpetual-license holders without active support contracts stop installing patches & updates.[2][3] Customers reported annual cost increases of 800% to 1,500%, with AT&T alleging a 1,050% rise, & the changes drew lawsuits in the United States, the United Kingdom, & the Netherlands.[4][5][6][7][8]
Consumer-impact summary
[edit | edit source]- End of perpetual licenses. On December 11, 2023, Broadcom stopped selling perpetual VMware licenses & discontinued support renewals for existing ones, collapsing the lineup into a few subscription bundles.[2] Software bought outright can't be updated unless the owner discards the perpetual license they paid for & buys a subscription.
- Price increases. AT&T alleged Broadcom offered it a 1,050% price rise.[5] For many customers, reported cost increases ranged from 800% to 1,500%.[4]
- Cease-and-desist letters and audits. Beginning in 2025, Broadcom sent legal notices ordering perpetual-license holders without active support to remove any patches, bug fixes, or upgrades installed after their support expired, then followed with software audits.[3]
- Litigation. AT&T sued in August 2024 & settled in November 2024;[6] Tesco sued for £100 million in September 2025;[7] a Dutch court ordered Broadcom to keep supporting the national infrastructure agency Rijkswaterstaat after an 85% price hike;[8] and VMware sued Siemens in March 2025 for using unlicensed copies.[9]
Background
[edit | edit source]VMware was founded in 1998 in Palo Alto, California, and shipped its first product, VMware Workstation, in 1999, bringing x86 virtualization to the desktop.[10] EMC Corporation announced its acquisition of VMware, a cash deal valued at about $635 million, in December 2003.[11] Dell Technologies later gained control of VMware & spun it back out as an independent company on November 1, 2021, divesting its 81% equity stake.[12] Broadcom announced its acquisition of VMware in May 2022 in a deal valued at about $61 billion & completed the purchase on November 22, 2023.[13][1]
Incidents
[edit | edit source]This is a list of consumer-protection incidents this company is involved in. Any not listed here can be found in the VMware category.
Licensing change since the Broadcom acquisition
[edit | edit source]- Main article: VMware licensing change since acquisition by Broadcom
Broadcom ended perpetual VMware licensing, required customers to move to subscriptions, & enforced the change through the software's license terms, sending cease-and-desist letters to perpetual-license holders who kept patching unsupported software.[3] The licensing changes also drew antitrust scrutiny, including a monopoly investigation by Japan's Fair Trade Commission.[14]

Products
[edit | edit source]- VMware vSphere and its ESXi hypervisor are the core server-virtualization platform. Broadcom discontinued the free edition of ESXi in February 2024, then restored it in April 2025.[16][17]
- VMware Cloud Foundation (VCF) is the bundled subscription stack Broadcom steers customers toward after collapsing the former product lineup into a handful of bundles in December 2023.[2]
- VMware Workstation Pro and VMware Fusion are desktop hypervisors for Windows, Linux, and macOS. Broadcom made both free for personal, educational, & commercial use on November 11, 2024.[18]
- VMware Horizon & the rest of the End-User Computing line are no longer VMware products. Broadcom sold the division to the investment firm KKR, and it now operates as a standalone company, Omnissa.[19]
-
VMware's own blog post announcing that Workstation Pro and Fusion became free for personal, educational, and commercial use on November 11, 2024.[18]
-
VMware's blog post introducing Omnissa, the former VMware End-User Computing business sold to KKR.[19]
Alternatives
[edit | edit source]Customers leaving VMware have moved to both open-source & commercial platforms. Proxmox VE is an open-source server virtualization platform from Proxmox Server Solutions GmbH, with optional paid support subscriptions.[20] QEMU is a free, open-source machine emulator and virtualizer.[21] On the commercial side, analysts have called Nutanix the most direct challenger to VMware in hyperconverged infrastructure.[22]
See also
[edit | edit source]References
[edit | edit source]- ↑ 1.0 1.1 "Broadcom Completes Acquisition of VMware". Broadcom Inc. 2023-11-22. Archived from the original on 2025-12-17. Retrieved 2026-06-15.
- ↑ 2.0 2.1 2.2 "VMware by Broadcom Dramatically Simplifies Offer Lineup and Licensing Model". VMware News. 2023-12-11. Archived from the original on 2024-05-14. Retrieved 2026-06-15.
- ↑ 3.0 3.1 3.2 3.3 Harding, Scharon (2025-05-07). "VMware perpetual license holders receive cease-and-desist letters from Broadcom". Ars Technica. Archived from the original on 2025-10-13. Retrieved 2026-06-15.
- ↑ 4.0 4.1 "Broadcom has allegedly hiked VMware costs between 800 and 1,500%". TechRadar. 2025-05-23. Archived from the original on 2025-09-15. Retrieved 2026-06-15.
- ↑ 5.0 5.1 Sharwood, Simon (2024-10-01). "AT&T claims VMware offered it a 1,050 percent price rise". The Register. Archived from the original on 2025-11-28. Retrieved 2026-06-15.
- ↑ 6.0 6.1 "Broadcom, AT&T reach settlement in VMware legal dispute". CIO Dive. 2024-11-22. Archived from the original on 2025-08-14. Retrieved 2026-06-15.
- ↑ 7.0 7.1 "Supermarket giant Tesco sues VMware for breach of contract". The Register. 2025-09-03. Archived from the original on 2025-12-23. Retrieved 2026-06-15.
- ↑ 8.0 8.1 "Dutch court forces Broadcom to support VMware migration after 85% price hike backlash". Network World. 2025-06-30. Archived from the original on 2025-09-11. Retrieved 2026-06-15.
- ↑ "VMware sues Siemens for using unlicensed software". The Register. 2025-03-26. Archived from the original on 2025-11-28. Retrieved 2026-06-15.
- ↑ "Everything you need to know about VMware". IT Pro. Archived from the original on 2026-02-15. Retrieved 2026-06-15.
- ↑ "EMC to Acquire VMware, Inc. (Form 425)". U.S. Securities and Exchange Commission. 2003-12-15. Retrieved 2026-06-15.
- ↑ "Dell Technologies Announces Completion of VMware Spin-off". PR Newswire. 2021-11-01. Archived from the original on 2026-05-07. Retrieved 2026-06-15.
- ↑ "Broadcom to Acquire VMware for $61 Billion". CNET. 2022-05-26. Retrieved 2026-06-15.
- ↑ "VMware investigated by Japanese antimonopoly agency: reports". The Register. 2024-09-25. Archived from the original on 2025-11-25. Retrieved 2026-06-15.
- ↑ "Notice of Expiration of Support by Broadcom". 2025-04-16. Archived from the original on 2025-05-13. Retrieved 2026-06-15.
- ↑ Sharwood, Simon (2024-02-13). "Broadcom terminates VMware's free ESXi hypervisor". The Register. Archived from the original on 2026-03-13. Retrieved 2026-06-15.
- ↑ Sharwood, Simon (2025-04-14). "VMware revives its free ESXi hypervisor in an utterly obscure way". The Register. Archived from the original on 2026-04-26. Retrieved 2026-06-15.
- ↑ 18.0 18.1 "VMware Fusion and Workstation are Now Free for All Users". VMware Cloud Foundation Blog. 2024-11-11. Archived from the original on 2026-05-02. Retrieved 2026-06-15.
- ↑ 19.0 19.1 "Introducing Omnissa, the former VMware End-User Computing business". VMware End-User Computing Blog. April 2024. Archived from the original on 2026-02-08. Retrieved 2026-06-15.
- ↑ "Company". Proxmox Server Solutions GmbH. Archived from the original on 2026-05-29. Retrieved 2026-06-15.
- ↑ "QEMU". QEMU. Archived from the original on 2026-06-09. Retrieved 2026-06-15.
- ↑ "VMware by Broadcom changes to continue in 2025". TechTarget. 2025-01-14. Retrieved 2026-06-15.