If you’re a business owner using VMware, you’ll eventually have to renew your license or contract. VMware has long been a trusted provider of virtualization, cloud management, and IT infrastructure. However, following Broadcom’s acquisition of VMware in 2023, several significant changes have taken place. Understanding these changes will help you assess whether VMware continues to meet your business needs in 2026 or if alternative solutions might offer better value.
Major changes to VMware post-Broadcom acquisition
Since Broadcom’s acquisition of VMware, several key shifts have reshaped VMware’s business model and service offerings.
Transition from perpetual licenses to subscription-based pricing
One of the most notable changes is VMware’s shift from its traditional perpetual licensing model to a subscription-based pricing structure. This change aligns with Broadcom’s goal of increasing recurring revenue but introduces unpredictability in costs.
Businesses that previously relied on fixed costs for perpetual licenses now face variable fees based on usage, service tiers, and selected options. For large-scale deployments, this change could result in rising costs as services scale. Additionally, the subscription model removes the ability to lock in pricing for extended periods, meaning businesses no longer have the option of securing long-term rates.
Streamlining of VMware’s product offerings
Alongside pricing changes, VMware has been streamlining its product portfolio. The company is increasingly prioritizing cloud services and reducing its range of virtualization tools and legacy products. As part of this shift, VMware has bundled many individual features and products into larger service packages. Therefore, businesses can no longer purchase certain tools or features individually but must instead buy the entire bundle that includes them. While this simplifies the product lineup, it also reduces flexibility and can increase overall costs, particularly for businesses that use only a small subset of VMware’s offerings.
If your business relies on VMware’s older products that may be phased out or replaced by new solutions, transitioning to these service packages may also come with training requirements and integration challenges. The shift to cloud-based services could further limit customization options, pushing businesses to adapt to new products or reduce the range of services they depend on.
Changes to VMware’s support and service models
Historically, VMware has been known for offering extensive and high-quality customer support. However, Broadcom’s approach to cost-cutting could lead to changes in the level and quality of support services. As VMware moves to streamline operations, there may be delays in response times or reductions in the depth of customer service options available.
This reduced support may impact system uptime and productivity. It’s therefore essential to evaluate whether VMware’s support infrastructure still meets your needs or if this aspect of their service is becoming less reliable.
VMware’s role in cloud and hybrid cloud environments
Cloud giants such as AWS, Azure, and Google Cloud continue to enhance their offerings, providing businesses with highly scalable, flexible, and cost-efficient cloud solutions that integrate seamlessly with cloud-native applications. As these providers advance, VMware’s cloud solutions may start to feel like a redundant layer or an extra cost for businesses that are ready to go all-in with one cloud provider.
This shift toward cloud-native services raises the question of whether VMware’s cloud tools still offer enough value for businesses that have already moved to or are planning to move to a fully cloud-native environment.
What you need to consider before a VMware renewal
Given VMware’s recent changes, it’s important to consider the following before deciding to renew:
Will the subscription model impact my budget?
As VMware transitions to subscription-based pricing, your costs could vary based on usage and service tiers, so reviewing your expected consumption is crucial to ensure this new model aligns with your budget.
Does VMware’s product lineup still meet my needs?
With VMware streamlining its offerings, take the time to reassess if the tools you’re currently using remain relevant to your business needs or if alternatives may provide more value at a lower cost.
Is VMware still a fit for my long-term IT strategy?
If your business is moving toward cloud-native technologies or a multicloud strategy, it’s worth evaluating whether VMware’s products still align with your future IT goals or if native cloud services would better suit your needs.
What are my alternatives?
As VMware refines its focus, exploring alternatives such as AWS, Azure, or Liberty Center One could offer more scalable, flexible, and cost-effective solutions that align with your evolving business requirements.
When should I start the renewal process?
Starting the renewal process early gives you time to review new pricing terms, consider alternative solutions, and make an informed decision that best supports your business’s goals.
The changes VMware has undergone are significant and will continue to shape the company’s products and services. If you need help navigating your VMware renewal or exploring alternative solutions, contact Liberty Center One for more information.