3 Minute Read

Navigating VMware’s Changes Post-Broadcom Acquisition 

Andrew McKay

Director of Marketing


March 8, 2024

In this article, we look at the implications of sales and support model changes, new pricing and bundling strategies, and the pivot towards subscription-based models. We will also explore strategies for anticipating VMware divestitures and product changes, leveraging managed services, and cloud migrations.  

Background on the VMware-Broadcom Acquisition 

Broadcom’s $69 billion acquisition of VMware represents a watershed moment in the tech sector, indicating a strategic move towards subscription-based models and a reevaluation of channel partnerships. This acquisition reshapes VMware’s strategic direction, potentially impacting a wide array of stakeholders in the enterprise IT ecosystem. The impending changes have prompted many businesses to conduct a detailed assessment of the challenges and opportunities this acquisition presents to their own organizations. 

The Impact of the VMware Purchase on IT

Broadcom’s strategic overhaul following the acquisition of VMware introduces profound changes across VMware’s business operations, from sales approaches to customer engagement tactics. A nuanced understanding of the shifts in sales and support models, product portfolio changes, and potential price increases are key to helping your organization smoothly navigate the transition. 

Here are some of the key areas to consider…  

Changes in Sales and Support Models 

One of the changes that will impact the largest percentage of VMware customers is the decision to terminate many VMware partner relationships and take the top 2,000 customers direct. The decision to reduce the size of the VMware partner channel and focus on direct engagement with their top 2,000 customers marks a significant pivot in VMware’s approach to customer support and service delivery. This shift could force many VMware customers to seek alternative support solutions depending on their current vendors relationships with VMware. 

Price Increases, Product Bundles, and Subscriptions 

With Broadcom’s shift towards product bundling and subscription models, VMware customers are likely to face notable price adjustments. In some cases, seeing an increase as high as 3-5 times their current price. This strategy may reduce flexibility in product selection but aims to streamline purchasing processes. IT buyers should conduct impact analyses and consider negotiations to customize bundle packages, ensuring they align with their operational needs and deliver maximum value. 

The move to subscription-based models requires adjustments in budgeting and IT management, offering access to the latest software versions and operational efficiencies. Organizations should perform cost-benefit analyses and plan phased rollouts to ease this transition, leveraging financial planning tools to manage budgetary impacts.  

Divestitures and Product Changes 

With some product divestitures already announced and others on the horizon, organizations must proactively reassess their strategies. As part of VMware’s portfolio simplification, many VMware software solutions will exclusively be offered as part of VMware Cloud Foundation (VCF) or VMware vSphere Foundation (VVF) and will no longer be available for purchase as standalone solutions. Staying informed and considering cloud platforms as scalable alternatives can prepare organizations for strategic shifts. Developing contingency plans and consulting with strategic IT consulting and managed services providers, like Connectria, can help bolster preparedness. 

The new VMware product bundles
  • VMware Cloud Foundation: A new solution integrating vSphere, vSAN, and NSX, along with the Aria management and orchestration suite, enhanced with additional services. 
  • VMware vSphere Foundation: Aimed at data center optimization in traditional vSphere environments, this package includes Tanzu Kubernetes Grid, Aria Operations, and Aria Operations for Logs. It also provides options for those with minimal requirements, such as hardware consolidation or virtualization on a few servers, through subscriptions to vSphere Standard and the vSphere Essentials Plus Kit. 

A table with the full list of product changes is available on the VMware blog.

Additionally, VMware has curated a selection of add-on services for both the VMware vSphere Foundation and VMware Cloud Foundation. These are designed to augment the customer experience by addressing extra requirements in storage, security, disaster recovery, Generative AI, and various other specialized areas. 

Evaluating Managed Services and Cloud Strategies 

To navigate the coming VMware changes, CIOs should evaluate their managed services options carefully, considering factors like provider expertise, service level agreements (SLAs), and compatibility with existing IT infrastructure. A strategic approach to selecting a managed services provider, focusing on those with a proven track record and a deep understanding of the VMware ecosystem, can ensure efficient cloud management and operational resilience. Working with a partner that has expertise in hybrid and multi-cloud infrastructure management and migration like Connectria, can provide you with an unbiased look at your total IT estate and help you establish a technology roadmap best suited to your individual workloads, current cloud footprint, and overall business goals. 

Navigating the New VMware with Connectria 

Navigating VMwares adjustments in sales and support models, products, and pricing may seem daunting, but you don’t have to face these changes alone. Connectria is ready to guide you through this transition with a consultative approach that leverages our extensive multi-cloud expertise. 

Why Choose Connectria?
  • Expert Guidance: Our team has deep expertise and understanding of the new VMware’s ecosystem, ensuring that you’re making informed decisions at every turn. 
  • Tailored Solutions: We understand that each organization’s needs are unique. Connectria offers customized solutions that align with your specific challenges and objectives. 
  • Multi-Cloud Proficiency: As a Premier AWS Partner and Gold Azure Partner, with broad expertise across mlutiple cloud platforms, we ensure that your transition is smooth, whether it involves optimizing existing infrastructures or migrating. 

Navigating the changes brought on by the VMware acquisition requires a partner who not only understands the technical landscape but also your business goals. Let us help you adapt to these changes, ensuring your IT infrastructure continues to support your business effectively and efficiently.

Reach out to us today to learn more about how we can support you in this new VMware era. 

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