News Summary

VMware is expected to experience a significant migration of its workloads, with 35 percent set to move to other platforms by 2028. This shift is largely attributed to Broadcom’s acquisition of VMware in November 2023, which introduced several changes that have alienated many of VMware’s customers. The changes include a move from perpetual licenses to subscriptions, bundling products into fewer and more expensive SKUs, and reducing the number of channel partners allowed to resell VMware technologies. These changes have particularly impacted small- to medium-sized businesses, prompting them to seek alternatives. Additionally, Broadcom’s decision to prevent hyperscalers, such as Amazon Web Services, from reselling VMware subscriptions has pushed many customers to consider migrating their workloads to the public cloud. This strategic move by Broadcom aims to increase direct sales, granting them a larger share of the deals. Gartner’s research predicts that this migration trend will continue as hyperscalers encourage their customers to transition to public cloud services.