Broadcom keeps giving me things to write about. From CIO Dive, Broadcom has initiated the second phase of its consolidation of VMware, transitioning over 90% of its largest customers to subscription-based services. CEO Hock Tan announced during a recent earnings call that the company aims to assist these customers in deploying and managing the VMware Cloud Foundation private cloud bundles effectively. In the third quarter of 2025, Broadcom reported a revenue increase of 22% year-over-year, reaching $16 billion, driven largely by sales in artificial intelligence semiconductors and continued growth within VMware. The company plans to focus on helping enterprise clients realize returns on their investments in private cloud solutions, with Tan stating that Broadcom will also offer advanced services including security and disaster recovery. VMware currently serves about 300,000 customers, with the top 10,000 showing significant engagement with the new private cloud offerings.
Why do we care?
Here we go again—Broadcom keeps giving us ammo. They’ve now moved 90% of VMware’s biggest customers onto subscription bundles. That’s not modernization, that’s consolidation—Broadcom-style. Their VMware Cloud Foundation stack is the new flagship product, whether you like it or not.
They’re raking in the cash—$16 billion in Q3, up 22%. AI chips helped, but VMware’s “private cloud” push is a big driver too. And here’s the kicker: they’re laser-focused on the top 10,000 customers. If you’re not in that club? You’re probably paying more, getting less flexibility, and losing control over how you run your infrastructure.
This is lock-in, not innovation.
MSPs supporting vSphere or hybrid environments are getting squeezed. You’ll need to help clients either bite the bullet and adapt—or make a real plan to get out. Alternatives like Nutanix, Proxmox, and Hyper-V just became way more relevant. This isn’t just product strategy—it’s survival strategy. If Broadcom controls the stack, you better control the relationship… or not be in that relationship at all.