Since the integration of VMware into Broadcom, 100 days of transformation and progress towards the goal of building the world’s leading technology infrastructure company have passed. This period has witnessed not only a transition but also decisive action and deep reevaluation with the aim of maximizing value for customers. According to Broadcom’s president, Hock Tan, the changes at VMware will be good for the community, although the reality is that companies are not looking favorably upon the movements during this time, including the elimination of the free version of VMware ESXi.
Over the 18 months of evaluation and acquisition of VMware, every aspect of the business was meticulously analyzed to identify the essential needs in creating additional value for customers. Since the acquisition was finalized in November, significant changes have been made to the software portfolio, market focus, and organizational structure of the company. These changes include a shift in the software sales strategy and a complete transition to a subscription-only business model, setting a new standard in the industry.
While these transformations have caused some concern among customers and partners, they aim to accelerate innovation, more effectively meet customer needs, and facilitate business interactions. Additionally, it is anticipated that these changes will provide greater profitability and open new market opportunities for partners.
With a strong commitment to simplification and a $1 billion investment in innovation, as well as around 3000 layoffs due to the merger, VMware positions itself at the center of this transformative strategy. Under Broadcom’s wing, VMware has redirected its innovative legacy towards a renewed sense of purpose.
During conversations with technology leaders, partners, and influencers, three challenges have consistently stood out: technological complexity, the need to simplify IT, and the importance of resilience and security. The VMware Cloud Foundation (VCF) emerges as the solution to these challenges, promoting a modernized platform for cloud infrastructure that combines the agility of public cloud with the security of private cloud at a lower cost.
The halving of the VCF subscription price and the increase in support service levels highlight Broadcom’s commitment to accessibility and efficiency. VCF not only streamlines work for developers but positions itself as a competitive option against current public cloud offerings.
The first 100 days of VMware under Broadcom’s leadership will mark the beginning or end of VMware as we know it. The cloud and infrastructure technology industry is seriously evaluating alternatives to VMware such as Proxmox, KVM, and even other proprietary solutions like Hyper-V or Citrix. Time will tell.