VMware licensing change since acquisition by Broadcom: Difference between revisions
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}} | }}On 22 November 2023, [[Broadcom Inc.]] completed the acquisition of VMware.<ref>{{Cite news |last=Yoo |first=Ji |date=2023-11-23 |title=Broadcom Completes Acquisition of VMware |url=https://investors.broadcom.com/news-releases/news-release-details/broadcom-completes-acquisition-vmware |url-status=live |archive-url=https://web.archive.org/web/20231201233650/https://investors.broadcom.com/news-releases/news-release-details/broadcom-completes-acquisition-vmware |archive-date=2023-12-01 |access-date=2025-09-06 |work=Broadcom Inc.}}</ref> Perpetual licenses for the software were ended and changed to a subscription-based model.<ref>{{Cite web |last=Walsworth |first=Rick |date=2024-01-22 |title=VMware End Of Availability of Perpetual Licensing and SaaS Services |url=https://blogs.vmware.com/cloud-foundation/2024/01/22/vmware-end-of-availability-of-perpetual-licensing-and-saas-services/ |url-status=live |archive-url=https://web.archive.org/web/20240124152826/https://blogs.vmware.com/cloud-foundation/2024/01/22/vmware-end-of-availability-of-perpetual-licensing-and-saas-services/ |archive-date=2024-01-24 |access-date=2025-09-06 |website=VMware}}</ref> Customers report that this new model results in higher overall pricing for their use of VMware. Several notable businesses who are customers of VMware have started legal action against Broadcom. | ||
On 22 November 2023, [[Broadcom Inc.]] completed the acquisition of VMware.<ref>{{Cite news |last=Yoo |first=Ji |date=2023-11-23 |title=Broadcom Completes Acquisition of VMware |url=https://investors.broadcom.com/news-releases/news-release-details/broadcom-completes-acquisition-vmware |url-status=live |archive-url=https://web.archive.org/web/20231201233650/https://investors.broadcom.com/news-releases/news-release-details/broadcom-completes-acquisition-vmware |archive-date=2023-12-01 |access-date=2025-09-06 |work=Broadcom Inc.}}</ref> Perpetual licenses for the software were ended and changed to a subscription based model.<ref>{{Cite web |last=Walsworth |first=Rick |date=2024-01-22 |title=VMware End Of Availability of Perpetual Licensing and SaaS Services |url=https://blogs.vmware.com/cloud-foundation/2024/01/22/vmware-end-of-availability-of-perpetual-licensing-and-saas-services/ |url-status=live |archive-url=https://web.archive.org/web/20240124152826/https://blogs.vmware.com/cloud-foundation/2024/01/22/vmware-end-of-availability-of-perpetual-licensing-and-saas-services/ |archive-date=2024-01-24 |access-date=2025-09-06 |website=VMware}}</ref> Customers report that this new model results in higher overall pricing for their use of VMware. Several | |||
==Background== | ==Background== | ||
In 2025, Broadcom initiated the second phase of its VMware consolidation.<ref name=":2">{{Cite news |last=Ashare |first=Matt |date=2025-09-05 |title=Broadcom enters ‘second phase’ of VMware consolidation |url=https://www.ciodive.com/news/broadcom-vmware-vcf-adoption-second-phase/759406/ |access-date=2025-09-06 |work=TechTarget Industry Dive: CIODive}}</ref> The CEO stated that "more than 90% of VMware’s largest 10,000 customers have shifted from perpetual licenses to the subscription-based".<ref name=":2" /> | In 2025, Broadcom initiated the second phase of its VMware consolidation.<ref name=":2">{{Cite news |last=Ashare |first=Matt |date=2025-09-05 |title=Broadcom enters ‘second phase’ of VMware consolidation |url=https://www.ciodive.com/news/broadcom-vmware-vcf-adoption-second-phase/759406/ |access-date=2025-09-06 |work=TechTarget Industry Dive: CIODive}}</ref> The CEO stated that "more than 90% of VMware’s largest 10,000 customers have shifted from perpetual licenses to the subscription-based".<ref name=":2" /> | ||
Besides the new pricing models since the acquisition, Broadcom increased the minimum amount of cores from 16 to 72 cores in April 2025 | Besides the new pricing models since the acquisition, Broadcom increased the minimum amount of cores from 16 to 72 cores in April 2025, which must be paid irrespective of usage of the 72 cores.<ref>{{Cite news |last=Robu |first=Raluca |date=2025-05-06 |title=VMware Price Increase in 2025: What You Need to Know |url=https://www.colocationplus.com/blog/vmware-price-increase-in-2025-what-you-need-to-know |url-status=live |archive-url=https://web.archive.org/web/20250521023945/https://www.colocationplus.com/blog/vmware-price-increase-in-2025-what-you-need-to-know |archive-date=2025-05-21 |access-date=2025-09-07 |work=ColocationPLUS}}</ref><ref name=":3">{{Cite news |last=Sharwood |first=Simon |date=2025-03-28 |title=VMware distributor Arrow says minimum software subs set to jump from 16 to 72 cores |url=https://www.theregister.com/2025/03/28/arrow_vmware_licensing_change/ |url-status=live |archive-url=https://web.archive.org/web/20250802114935/https://www.theregister.com/2025/03/28/arrow_vmware_licensing_change/ |archive-date=2025-08-02 |access-date=2025-09-07 |work=The Register}}</ref> In addition, being late with license renewal causes an additional 20% cost penalty.<ref name=":3" /> | ||
==End of perpetual licenses== | ==End of perpetual licenses== | ||
===Broadcom's response=== | ===Broadcom's response=== | ||
Broadcom argues that they have listened to their customers. They close their response to saying they will complete the transition plan to a subscription model for VMware.<ref>{{Cite news |last=Tan |first=Hock |date=2024-04-15 |title=A changing market landscape requires constant evolution: our mission for VMware customers |url=https://www.broadcom.com/blog/a-changing-market-landscape-requires-constant-evolution-our-mission-for-vmware-customers |access-date=2025-09-06 |work=Broadcom}}</ref> | Broadcom argues that they have listened to their customers. They close their response to saying they will complete the transition plan to a subscription model for VMware.<ref>{{Cite news |last=Tan |first=Hock |date=2024-04-15 |title=A changing market landscape requires constant evolution: our mission for VMware customers |url=https://www.broadcom.com/blog/a-changing-market-landscape-requires-constant-evolution-our-mission-for-vmware-customers |access-date=2025-09-06 |work=Broadcom}}</ref><!-- Elaborate on Broadcom's response with a fair and neutral explanation to make the article more balanced. Include quotations if possible --> | ||
==Lawsuits== | ==Lawsuits== | ||
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*CISPE's ECCO found that their members costs for VMware increased 8 to 15 times compared to the previous pricing model.<ref>{{Cite news |last=Hale |first=Craig |date=2025-05-23 |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 |url-status=live |archive-url=https://web.archive.org/web/20250726024605/https://www.techradar.com/pro/broadcom-has-allegedly-hiked-vmware-costs-between-800-and-1-500-percent |archive-date=2025-07-26 |access-date=2025-09-06 |work=TechRadar}}</ref> | *CISPE's ECCO found that their members costs for VMware increased 8 to 15 times compared to the previous pricing model.<ref>{{Cite news |last=Hale |first=Craig |date=2025-05-23 |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 |url-status=live |archive-url=https://web.archive.org/web/20250726024605/https://www.techradar.com/pro/broadcom-has-allegedly-hiked-vmware-costs-between-800-and-1-500-percent |archive-date=2025-07-26 |access-date=2025-09-06 |work=TechRadar}}</ref> | ||
*The reliance on VMware is high across many different sectors and is not something that can easily be replaced by other software | *The reliance on VMware is high across many different sectors and is not something that can easily be replaced by other software.<ref>{{Cite news |last=Jacobs |first=Skye |date=2025-01-29 |title="We loved VMware. Now we hate it": Customers react to Broadcom's changes |url=https://www.techspot.com/news/106547-loved-vmware-now-hate-customers-react-broadcom-changes.html |access-date=2025-09-06 |work=TechSpot}}</ref> | ||
==References== | ==References== | ||
{{reflist}} | {{reflist}} | ||
[[Category:VMWare]] | [[Category:VMWare]] | ||