Broadcom’s recent change in VMware’s licensing model has raised major concerns among smaller and mid-sized customers, who report cost increases of eight to fifteen times since the acquisition. Despite this backlash, Broadcom’s Chief Technology Officer, Joe Baguley, states that 87 percent of VMware’s top ten thousand customers have chosen the VMware Cloud Foundation, or VCF, as their strategy going forward. Baguley claims that many dissatisfied customers are not fully utilizing the capabilities of the VCF product, which combines various components to improve operational efficiency. A report by VMware shows that 53 percent of global companies now focus on private cloud deployment for new workloads, indicating a shift in strategy as organizations reassess their cloud computing needs.
Why do we care?
Broadcom’s shift is forcing a segmentation of the VMware customer base, and IT providers must quickly assess which camp their clients fall into: strategic enterprise buyers doubling down on VCF, or price-sensitive SMBs looking for the exits.
Broadcom’s VMware pricing model isn’t just a cost issue—it’s a signal of enterprise-only intent, cutting off smaller customers. IT providers must seize this moment to offer exit strategies, migration services, and private cloud alternatives that reflect their clients’ scale and budget realities.
The winners here won’t just be those who ditch VMware fast. They’ll be the ones who help customers land safely—with resilient, understandable, and appropriately priced platforms. The time for passively maintaining vSphere is over. Start offering an answer now—or someone else will.