At the end of 2023, Broadcom completed the acquisition of VMware, a strategic move that has redefined the licensing landscape of its products in the virtualization arena.
From Stackscale, experts in infrastructure and private cloud, they have shared with Revista Cloud more information that allows us to explore these changes in detail and how they will affect their partners and clients:
Elimination of perpetual licenses and new subscriptions
With Broadcom’s acquisition of VMware, it has been decided to discontinue perpetual licenses, which allowed users a one-time payment for indefinite use of the software. From now on, all VMware products will only be available through annual, triennial, or quinquennial subscriptions.
Free version of Vmware ESXi eliminated
Almost unexpectedly, the possibility to download and reuse the free version of ESXi, which was available for download and was a very interesting entry point into the world of virtualization with VMware, has also been eliminated.
Diversity in subscription licenses
Broadcom has introduced a range of subscriptions that offer different price levels and functionalities. This change allows users to select the option that best suits their needs and budget, although it also implies a review of their technology spending strategies.
Price increases
The new subscription model has been accompanied by an increase in prices for some solutions, especially those that were previously offered under perpetual licensing. Users requiring support will need to purchase a subscription license once their current maintenance contract expires.
Review of the partner ecosystem
Broadcom is also reassessing the requirements for VMware partners. These new requirements and commitments seek to optimize collaboration and maximize the benefits of the alliance, although they could pose additional challenges for current partners.
Impact on VMware Products
The products that will no longer be available under perpetual licensing include VMware Cloud Foundation, VMware Site Recovery Manager, VMware vCloud Suite, VMware vSphere, VMware vSAN, VMware NSX, VMware HCX, VMware Aria Suite, VMware Aria Universal, VMware Aria Automation, VMware Aria Operations, VMware Aria Operations for Logs, and VMware Aria Operations for Networks.
Recommendations for companies
1. Evaluate needs: It is essential to analyze virtualization needs to select the most suitable licensing option.
2. Explore alternatives: Consider other virtualization solutions, including open-source options or those from other providers. Proxmox is gaining strength as a real and open-source alternative.
3. Stay informed: It is vital to stay informed of changes in licensing and the partner program to make informed decisions.
New solutions catalog
Broadcom’s new VMware catalog includes four main bundles:
– VMware vSphere Foundation (VVF)
– VMware Cloud Foundation (VCF)
– VMware vSphere Standard
– VMware vSphere Essentials Plus
Additional licenses (Add-Ons)
Additional licenses available include VMware vSAN Add-on, VCDR/RWR, SRM, VMware Avi Load Balancer, Tanzu Intelligence, among others.
Impact of licensing changes
The transition from perpetual licenses to subscription models represents a significant challenge for companies that have based their business models on capital expenditure (CAPEX) for computing and software resources.
From Revista Cloud in collaboration with Stackscale, we are prepared to assist in this crucial transition to the new VMware scenario, ensuring that it is managed in a way that does not negatively impact business operational continuity. We are also ready to showcase and evaluate alternatives such as the Proxmox hypervisor, a real alternative to VMware.
VMware could lose many customers with these changes
The purchase of VMware by Broadcom and the licensing changes represent a significant transformation in the technology sector. This new model may increase costs and reduce flexibility, but it also offers advantages such as continuous access to updates and improvements, greater scalability, and simplification in license management, according to Broadcom.
Companies must carefully evaluate their options and stay informed to make strategic decisions that allow them to adapt and make the most of VMware solutions.
For more information and assistance in licensing transition or finding new solutions, do not hesitate to contact us, and we will connect you with experts in virtualization and cloud.