In November 2023, the technology landscape witnessed a monumental shift with Broadcom's acquisition of VMware for $69 billion.
This strategic move not only redefines the contours of IT and cloud computing but also signifies a new era for the new giant. Broadcom's leap towards subscription-based services and hybrid cloud environments echoes a broader industry evolution towards more flexible, service-oriented architectures.
VMware by Broadcom, a pioneer in virtualization technology, now embarks on a transformative journey, reimagining its product strategy and customer engagement in light of these changes.
This acquisition is more than a merger; it's a signpost for the future of cloud computing, where innovation, agility, and strategic foresight lead the way.
Broadcom/VMware takeover overview
Below are essential milestones in the transition timeline from VMware to VMware by Broadcom, featuring important dates and necessary actions for businesses during this period of transformation.
2022:
- May: Broadcom announces its intention to acquire VMware for $61 billion.
2023:
- July: Broadcom begins outlining the restructure of VMware's partner programs, moving to an invitation-only Broadcom Advantage Partner Program.
- November: Broadcom completes the acquisition of VMware for $69 billion.
- Dec:
- Broadcom announces its intention to initiate layoffs within VMware, affecting over 1,200 employees in Silicon Valley, with additional layoffs globally following soon after in the Middle East, India, Australia, Nordics.
- VMware completes its transition to a subscription-based licensing model.
2024:
- 7th February: VMware announces the overhaul of its product portfolio and shifts to subscription licenses, discontinuing perpetual licenses and SnS renewals.
- 16th February: Broadcom announces the end of general availability for the VMware vSphere Hypervisor (Free Edition).
- 26th February: Broadcom announces the sale of VMware's EUC division to KKR for about $4 billion.
- March: Details on Broadcom’s Advantage Partner Program released:
- Cloud Service Provider (CSP) partners who have been invited back into Broadcom’s Advantage Partner Program (BAP) need to have completed registration - Pinnacle, Premier, Registered.
- Pinnacle (100 Globally) and Premier (400 Globally) offered the option to white label their services for the remaining 4,000 ‘Registered’ CSP’s to buy through them.
- Registered VCSP Partners cannot take a white label service for access to the software in any other way, other than through their competitors.
- Standard pricing per Core (GB RAM is no longer an option) set at $217 per core, if the Partner commits to a 3 year contract upfront, paid monthly.
- On Demand pricing is also per Core and is not discounted, charging $350 per core.
- Disenfranchised ‘Registered’ CSPs will need to pay the above prices plus the margin added by Pinnacle or Premier partners.
- T&C’s, Partner Programmes, EULA content and key details remain unclear, despite Broadcom’s insistence for CSP partners to sign 3 year commitment contracts to protect their installed bases
Upcoming key changes for Partners and Customers
If you’re a VMware customer or a partner and are concerned by the changes below, watch out and take action today.
For Customers:
- Now: Customers with expiring Enterprise License Agreements (ELAs) must transition to the subscription model.
- 1st April 2024: The transition to the subscription model becomes effective, with VMware subscriptions moving from metered RAM to CPU core, marking a significant change in pricing and consumption models.
For Partners:
- 31st March 2024: The final rental period for the VMware Cloud Provider Program (VCPP) usage ends. Partners and customers must finalize their usage to avoid service disruptions.
- 15th April 2024: The last chance for partners and customers to submit their March VCPP usage before the termination of the program, with bookings closing on this date.
- 30th April 2024: The VMware program officially terminates, highlighting the importance of completing transitions and embracing the new Broadcom era by this date.
This transformation represents a significant pivot in how VMware's products and services will be developed, marketed, and sold, focusing on delivering continuous innovation and value to customers.
Broadcom VMware acquisition impact on customers and partners can be navigated by keeping updated and acting promptly, you can facilitate a seamless transition, remain compliant, and protect the security and efficiency of your systems.
What can Civo do for you?
Whether you are a customer or a partner, Civo offers an easy path off VMware.
A VMware alternative with feature rich support, our CivoStack Enterprise service delivers cutting-edge features and tools, focusing on ease-of-use, smooth migration, and 24x7 advanced support.
- On-prem support (keep using your own hardware)
- Up to 80% cheaper than Broadcom
- Simple license model based on VRAM
- Long term commitment on pricing
- Free migration support
- Support for multiple storage vendors
- Live migration support for VMs
- High availability deployment options
- Multi-tenancy support
- Windows/ Linux support
- Simple end user management UI
- Hybrid cloud support
- Support for AWS, Azure, GCP
- Infrastructure-as-code tools (CLI, API, Terraform)
- Self-service portal with billing API
- 24x7 Enterprise customer support
CivoStack Enterprise is a future-proof cloud-native platform that integrates Kubernetes, laaS, PaaS, DBaaS, Object Storage, WASM, GPUs, and Al/ML capabilities, providing a comprehensive and scalable environment for cutting-edge computing needs.
Find out more
