How to Navigate Broadcom’s Acquisition of VMware 


By Craig Rhodes, Structured Data Center Solutions Managing Director —

Broadcom’s acquisition of VMware has brought significant changes to the licensing and subscription structure of VMware products. This transition includes a shift from perpetual licensing to a subscription-based model, with a focus on VMware Cloud Foundation (VCF) and VMware vSphere Foundation (VVF) offerings.

With some understandable confusion – and more than a little trepidation – customers face new considerations when it comes to updating their VMware licensing. As part of Structured’s commitment to providing customers with comprehensive support and guidance, we’ve dedicated significant resources to understanding the implications of this transition.

For some customers, especially those who had gone “all in” on VMware’s management tools prior to the change, Broadcom’s acquisition of VMware may actually have a beneficial impact on long-term pricing. Other customers, however, may be better served by exploring other options. In either case, the team at Structured is ready and able to assist clients in making informed decisions about their IT infrastructure. 

Your Key Considerations

The subscription model is shifting. Customers can no longer purchase perpetual licenses and are required to transition to the subscription model for additional licenses. 

This may lead to increased costs. The transition to subscription-based licensing may lead to increased long-term costs for customers, raising concerns about budgeting and resource allocation. 

Audits may be on the rise. VMware may conduct more audits to ensure compliance with the new subscription model, potentially leading to unexpected licensing needs. 

Know when your contract expires. Be aware of when your current VMware support contracts are expiring, as VMware may initiate discussions about switching to the new subscription model. 

Your Path Forward

Have an ally for pricing negotiations. Structured can work with you to negotiate the best pricing possible for your VMware environment, helping you plan for and navigate potential licensing and price changes. 

Understand your migration options. Together, we can explore migration options if you are interested in moving away from VMware to alternative hypervisors such as Nutanix, Microsoft, Scale Computing or Red Hat. Our Professional Services and Project Management teams can facilitate the migration process and provide expertise in designing and architecting solutions for alternative platforms. 

Consider private, public and hybrid cloud platforms. Structured can help clients evaluate private cloud options with data center providers such as TierPoint, Flexential, 11:11, Expedient, or DataBank (to name a few). If public cloud is preferred, we can help you determine whether operating a VMware environment via providers like AWS, Azure, or Google Cloud Platform (GCP) is best. Or, if you want to optimize costs by leveraging multiple platforms, Structured can assist in implementing a hybrid cloud approach, where workloads are distributed across public and private cloud platforms based on specific requirements. Rest assured, Structured is versed in and skilled with all of these solutions.

Structured’s Value Proposition

As an award-winning solution provider with more than 30 years of experience across every facet of IT in businesses of every size, Structured is uniquely positioned to assist you in navigating your VMware licensing and exploring alternative solutions. Our expertise in VMware licensing and partnerships with leading technology providers enable us to offer comprehensive support and tailored solutions to meet your needs. 

Conclusion

As details from Broadcom’s acquisition of VMware continue to evolve, Structured remains committed to providing innovative solutions and unparalleled support to our clients. By staying informed about industry changes and offering tailored solutions, we can ensure that you are equipped to navigate your VMware renewals with confidence and make strategic decisions that align with your business objectives. 

Resources

Redress Compliance, “Broadcom VMware Licensing Changes Explained,” March 12, 2024.

Redress Compliance, “Analyzing VMware Licensing Changes,” February 22, 2024.

Flexential, “Navigating Change: The Flexential Approach to the Broadcom-VMware Acquisition,” February 15, 2024.

Livingstone, “VMware Licensing is Changing: What You Need to Know,” 2024.

Expedient, “Broadcom Reshapes VMware Licensing,” February 8, 2024


About the Author

Craig Rhodes is managing director of data center solutions at Structured, specializing in data center services and data protection. His role involves consulting with clients on data center strategies and process improvements, as well as vendor partner management. With a career spanning roles at GCI General Communication, Inc., Pacific Coast Consulting, and major projects for companies like Starbucks and Expedia, Craig’s expertise covers a broad spectrum of IT infrastructure, project management, and strategic consulting. His leadership has significantly impacted the development and execution of comprehensive data center and technology strategies for the companies he has served during his career.