VMware licensing change since acquisition by Broadcom: Difference between revisions
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==Regulatory investigations== | ==Regulatory investigations== | ||
===European Union=== | ===European Union=== | ||
The European Commission approved the acquisition in July 2023 under case number M.10806 with significant conditions including 10-year commitments for technology access, interoperability APIs, and source code access to competitors.<ref>{{cite web |url=https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3777 |title=Mergers: Commission clears acquisition of VMware by Broadcom, subject to conditions |website=European Commission |date=2023-07-12 |access-date=2025-09-08}}</ref> | The European Commission approved the acquisition in July 2023 under case number M.10806 with significant conditions including 10-year commitments for technology access, interoperability APIs, and source code access to competitors.<ref>{{cite web |url=https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3777 |title=Mergers: Commission clears acquisition of VMware by Broadcom, subject to conditions |website=European Commission |date=2023-07-12 |access-date=2025-09-08 |archive-url=http://web.archive.org/web/20260128022318/https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3777 |archive-date=28 Jan 2026}}</ref> | ||
On July 22, 2024, the European Commission initiated investigations, receiving complaints about the licensing model after Broadcom acquired VMware.<ref>{{cite web |url=https://dutchcloudcommunity.nl/wp-content/uploads/2024/08/Art-182-RFI-CISPE-Broadcom-VMware-22-07-24-esigned.pdf |title=Case AT.40924 - VMware software licensing - Request for information pursuant to Article 18(2) of Council Regulation (EC) No 1/2003 |website=European Commission |date=2024-07-22 |access-date=2025-09-08 |archive-url=https://web.archive.org/web/20260105004544/https://dutchcloudcommunity.nl/wp-content/uploads/2024/08/Art-182-RFI-CISPE-Broadcom-VMware-22-07-24-esigned.pdf |archive-date=5 Jan 2026}}</ref> The European Cloud Competition Observatory assigned Broadcom "red" status for critical anticompetitive risk in May 2024.<ref>{{cite web |url=https://cispe.cloud/ecco-reports-no-progress-with-broadcom/ |title=ECCO Reports No Progress with Broadcom |website=CISPE |date=2024-05-23 |access-date=2025-09-08 |archive-url=https://web.archive.org/web/20251107154159/https://cispe.cloud/ecco-reports-no-progress-with-broadcom/ |archive-date=7 Nov 2025}}</ref> | On July 22, 2024, the European Commission initiated investigations, receiving complaints about the licensing model after Broadcom acquired VMware.<ref>{{cite web |url=https://dutchcloudcommunity.nl/wp-content/uploads/2024/08/Art-182-RFI-CISPE-Broadcom-VMware-22-07-24-esigned.pdf |title=Case AT.40924 - VMware software licensing - Request for information pursuant to Article 18(2) of Council Regulation (EC) No 1/2003 |website=European Commission |date=2024-07-22 |access-date=2025-09-08 |archive-url=https://web.archive.org/web/20260105004544/https://dutchcloudcommunity.nl/wp-content/uploads/2024/08/Art-182-RFI-CISPE-Broadcom-VMware-22-07-24-esigned.pdf |archive-date=5 Jan 2026}}</ref> The European Cloud Competition Observatory assigned Broadcom "red" status for critical anticompetitive risk in May 2024.<ref>{{cite web |url=https://cispe.cloud/ecco-reports-no-progress-with-broadcom/ |title=ECCO Reports No Progress with Broadcom |website=CISPE |date=2024-05-23 |access-date=2025-09-08 |archive-url=https://web.archive.org/web/20251107154159/https://cispe.cloud/ecco-reports-no-progress-with-broadcom/ |archive-date=7 Nov 2025}}</ref> | ||
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*Nutanix emerges as the primary beneficiary, with its Net Score jumping from single digits to 40% and adding 630 new customers in its most recent quarter.<ref>{{cite web |url=https://www.techtarget.com/searchdatacenter/news/366617362/VMware-by-Broadcom-changes-to-continue-in-2025 |title=VMware by Broadcom changes to continue in 2025 |website=TechTarget |date=2025-01-14 |access-date=2025-09-08 |archive-url=https://web.archive.org/web/20251014081647/https://www.techtarget.com/searchdatacenter/news/366617362/VMware-by-Broadcom-changes-to-continue-in-2025 |archive-date=14 Oct 2025}}</ref> | *Nutanix emerges as the primary beneficiary, with its Net Score jumping from single digits to 40% and adding 630 new customers in its most recent quarter.<ref>{{cite web |url=https://www.techtarget.com/searchdatacenter/news/366617362/VMware-by-Broadcom-changes-to-continue-in-2025 |title=VMware by Broadcom changes to continue in 2025 |website=TechTarget |date=2025-01-14 |access-date=2025-09-08 |archive-url=https://web.archive.org/web/20251014081647/https://www.techtarget.com/searchdatacenter/news/366617362/VMware-by-Broadcom-changes-to-continue-in-2025 |archive-date=14 Oct 2025}}</ref> | ||
*Microsoft Azure Stack HCI now holds nearly 38% of virtualization market share versus VMware's 36%.<ref>{{cite web |url=https://www.statista.com/topics/8785/vmware/ | *Microsoft Azure Stack HCI now holds nearly 38% of virtualization market share versus VMware's 36%.<ref>{{cite web |date=2024-12-01 |title=VMware - statistics & facts |url=https://www.statista.com/topics/8785/vmware/ |archive-url=https://web.archive.org/web/20240926225139/https://www.statista.com/topics/8785/vmware/ |archive-date=2024-09-26 |access-date=2025-09-08 |website=Statista}}</ref> | ||
*Open-source alternatives including Proxmox, KVM, and OpenNebula see increased adoption particularly among cost-conscious mid-market organizations.<ref>{{cite web |url=https://www.spectrocloud.com/blog/vsphere-alternatives |title=Complete guide to modern vSphere alternatives for 2025 |website=Spectro Cloud |date=2025-01-15 |access-date=2025-09-08 |archive-url=https://web.archive.org/web/20251014103521/https://www.spectrocloud.com/blog/vsphere-alternatives |archive-date=14 Oct 2025}}</ref> | *Open-source alternatives including Proxmox, KVM, and OpenNebula see increased adoption particularly among cost-conscious mid-market organizations.<ref>{{cite web |url=https://www.spectrocloud.com/blog/vsphere-alternatives |title=Complete guide to modern vSphere alternatives for 2025 |website=Spectro Cloud |date=2025-01-15 |access-date=2025-09-08 |archive-url=https://web.archive.org/web/20251014103521/https://www.spectrocloud.com/blog/vsphere-alternatives |archive-date=14 Oct 2025}}</ref> | ||