VMware Customers Seek Alternatives After Broadcom Price Hikes
Broadcom Inc faces significant customer churn as 90% of VMware decision-makers consider alternative vendors due to rising licensing costs and the end of perpetual licenses.
A study by Rimini Street reveals that Broadcom Inc is facing widespread customer dissatisfaction following its acquisition of VMware. Approximately 90% of VMware decision-makers are considering alternative vendors, primarily driven by increased licensing costs. Additionally, 54% of surveyed users expressed frustration over the termination of support for perpetual licenses.
Despite the desire to switch, many organizations report significant barriers to migration. These include operational complexity, the difficulty of managing multiple vendors, and security concerns regarding an expanded attack surface. To mitigate these risks, some enterprises are implementing multi-hypervisor strategies or utilizing third-party support for existing VMware packages instead of pursuing a total migration.
The shift in licensing strategy has already led to concrete customer losses. IBM has offloaded hundreds of its VMware cloud customers as part of the broader industry reaction to Broadcom's pricing and support changes.
