A new survey conducted by Rimini Street, Inc., a global provider of enterprise software support, highlights that most VMware customers are seeking ways to maximize the value of their perpetual licenses and adapt to recent changes in the pricing and subscription policy of the hypervisor provider following its acquisition by Broadcom.
Challenges of Perpetual Licenses and Subscription Models
The report “Insights and Strategies on VMware: Navigating the Evolving Hypervisor Market”, based on a survey of over 110 VMware customers, revealed that:
- 79% of respondents believe their current perpetual licenses meet their business needs.
- However, the shift towards mandatory subscription models and product bundling has resulted in significant price increases, leading many organizations to consider alternatives to VMware.
- 92% of respondents anticipate further price increases within the next 12 to 18 months.
Options for Maximizing Existing Software
Despite these challenges, 99% of respondents would be willing to continue using their current VMware software if they could access adequate support. Additionally, 96% see value in services that help them assess VMware alternatives, and 98% are already using or considering different options for at least part of their infrastructure.
Rodney Kenyon, group vice president at Rimini Custom™, described the situation with an analogy: “Giving up control of perpetual licenses due to forced subscription models is like handing over the keys to your paid-off house to rent it from a landlord. While customers are satisfied with VMware software, price hikes and licensing changes are pushing them to explore alternative strategies.”
Transformation of the Hypervisor Market
The study also identified key trends that are impacting the hypervisor market:
- Cloud-native solutions: Identified by 71% of respondents as the primary influence in the market.
- Artificial Intelligence (AI): 70% of respondents view AI as an important factor in the sector’s evolution.
These technologies are accelerating the transition to more innovative solutions, driving companies to extend the lifespan of their current systems while evaluating options to adapt to new demands.
The Role of Third-Party Support
For organizations looking to maintain their VMware environment without incurring the costs associated with new subscription models, third-party support offers a viable solution. Rimini Street provides:
- Comprehensive support to maximize the value of existing software.
- Roadmap services to help assess alternatives and optimize costs.
- Expert guidance in a rapidly changing market.
Conclusion: Stability Amid Uncertainty
The uncertainty generated by Broadcom’s policies and changes in the hypervisor market is pushing VMware customers to seek stability and more cost-effective solutions. Third-party support, combined with roadmap strategies, emerges as a key option for organizations wishing to continue using their perpetual licenses while navigating a constantly evolving market.