VMware customers are jumping ship as Broadcom sales continue - here's where they're moving to

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Many ex-VMware customers are going open-source

VMware
(Image credit: Ferran Rodenas / Flickr)

It will likely come as no surprise that VMware is losing customers following its $61 billion acquisition by Broadcom at the end of 2023.

In the months that followed the takeover, Broadcom has introduced major changes that it says will boost profitability for the company, including removing free products and terminating perpetual licenses in favor of a subscription-based business model.

With many customers unhappy, a new community survey with more than 700 respondents has shed light on the evolving hypervisor landscape – and the troubling reality for VMware.

Broadcom is losing VMware customers

Several months on, VMware customers are now actively exploring alternatives to avoid potential price hikes, and they’re beginning to realize the benefits of open-source software infrastructure, for example the greater flexibility when it comes to hardware and software licenses.

iXsystems brands VMware as a solution “for those who can afford it,” with only 18% of the respondents staying with the provider. Similarly, Microsoft’s Hyper-V, another proprietary system, only accounts for around 12% of users.

KVM-based and Xen-based hypervisor alternatives, which are both open-source solutions, account for more than two-thirds (70%) of all respondents’ preferred choices.

Marc Staimer, President of Dragon Slayer Consulting, highlighted the dominance of open-source Linux in various domains, emphasizing the growing strength of Linux-based alternatives: “Open-source Linux has become the dominant operating system by far, just about everywhere. It includes KVM (hypervisor), Kubernetes, containers, and more.”

Open-source infrastructure is credited for its interoperability, community engagement and documentation advantages, making them easier to integrate with existing environments.

It’s clear that open-source has been gaining traction for a while, however Broadcom’s decision to drastically change VMware’s offerings has served as a catalyst.

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!