In a move that has sparked uncertainty among its customers, Broadcom has ended Amazon Web Services’ (AWS) right to resell VMware Cloud on AWS. Moving forward, customers will need to deal directly with VMware, now under Broadcom’s control, raising doubts about the long-term future of the product.
Rumors began last week when it was reported that AWS was encouraging users of VMware Cloud on AWS to migrate their workloads to AWS native services. This move confused many, and speculation grew until Broadcom’s CEO, Hock Tan, posted a blog entry to counter the “false reports that VMware Cloud on AWS might disappear.”
According to Tan, the only change is that VMware Cloud on AWS is no longer sold directly through AWS or its channel partners. “What this means is that customers who previously purchased VMware Cloud on AWS from AWS will now work with Broadcom or an authorized Broadcom reseller to renew their subscriptions and expand their environments,” he wrote in his blog.
However, customers with active one- or three-year subscriptions with monthly payments acquired through AWS will continue to be billed by the cloud giant until the end of the contract term.
AWS, on the other hand, notified its partners about the change on its AWS Partner Central portal, stating that Broadcom had “decided to end AWS’s rights to resell VMware Cloud on AWS as of April 30.” They also invited partners to PartnerCast sessions to discuss their plans to “move VMware customers to AWS native services.”
Additionally, AWS published a blog entry explaining to customers how to migrate VMware-based virtual machines to Amazon EC2 using the AWS Application Migration Service Replication Agent.
Meanwhile, Microsoft is attempting to attract disgruntled VMware customers with its own solution, Azure VMware Solution. They offer incentives such as unique Azure credits of up to $120,000 when purchasing a new Reserved Instance, the ability to run Windows Server and SQL Server in the cloud without additional licensing costs and free Extended Security Updates. They also provide the option to secure a Reserved Instance for five years until June 30.
However, according to analyst Wes Miller of Directions on Microsoft, Microsoft’s offer is not as attractive as it seems. The mentioned benefits, like free Extended Security Updates, are already included in Azure VMware Solution, and the main quantifiable benefit is the $120,000 credit, which provides six months of free services in Azure. Offering a Reserved Instance for five years might appeal to some customers looking to lock in pricing now, but the question remains what will happen after those five years.
In an update, AWS commented: “We are disappointed that AWS no longer operates as a reseller of VMware Cloud on AWS, but we continue to work closely with Broadcom to serve our mutual customers. We remain committed to helping customers make the most of the best cloud services for their businesses, including VMware Cloud on AWS.”
The end of the reselling alliance between AWS and VMware under Broadcom’s control marks a significant shift in the sales and support dynamics for VMware Cloud on AWS customers. As customers navigate this new landscape, it will be crucial to observe how Broadcom handles the transition and how competitive offerings, like Microsoft’s, influence their decisions.
Source: The Register