Broadcom Acquisition VMware: Main Impacts

After acquisition of VMware, Broadcom made significant changes to VMware. This post will list some main influences on its customers. And also list some VMware competitions if you want to switch to a new virtualization platform.

Dylan

By Dylan / Updated on September 29, 2024

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In November 2023, Broadcom completed its acquisition of VMware with 69 billion dollars, which can be a pivotal moment. This strategic move not only reshapes the dynamics within the tech industry but also reflects Broadcom’s ambitions to diversify and enhance its portfolio.

After the acquisition, Broadcom adjusted the VMware licensing models and product line to increase income. This could have big impacts on its users. If you are a VMware user, this post will guide you on how to deal with this change.

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Broadcom VMware acquisition impact

The acquisition can lead to a significant change in the virtualization and cloud computing industry. And the users have to respond to these changes. Here are some main impacts on VMware users.

► Cost increase: After the acquisition, Broadcom changed the VMware licensing model. They changed the perpetual license to subscription.

Although the subscription model provides customers with continuous access to the latest software versions and support, it increases the cost of long-term use. Some customers have reported price increases of up to 175 percent, with some reporting paying 10 times more for the same service.

► Limited product choice: Broadcom has consolidated VMware’s products to streamline the product portfolio. This may result in customers being limited in product choice and no longer being able to choose from a diverse range of products based on their specific needs.

In addition, the strategy of bundling products makes it possible for customers to pay for certain product features even if they do not need them.

► Business Model Shock: For VMware's cloud services partners, Broadcom's acquisition comes as a big shock. For example, Broadcom notified cloud service provider partners that it plans to end its program at the end of April 2024 to allow service providers, such as small cloud operators, to sell VMware-based cloud services.

This has challenged the business models of many cloud service providers, who will need to redirect their business or partner with other vendors.

Want to shift to a new hypervisor?

If you don’t want to accept the VMware changes, you may want to search for VMware alternatives. Here are some popular hypervisors you may want to an alternative from them.

Proxmox: Promox virtual environment. It is an open-source platform based on QEMU/KVM and LXC. It is famous for its easy-to-use web interface and multi-master tool.

►XenServer, supports Windows and Linux operating systems. Amazing networking management. Perform well in complex environments.

►Microsoft Hyper-V: Hyper-V is a virtualization platform developed by Microsoft. Offer user-friendly interface and integration with Windows Server system. Provides various features including live migration, virtual networking, and dynamic memory allocation.

►KVM hypervisor offers complete virtualization features. Each virtual machine is allowed access to all of the standard physical system functions, like virtual BIOS and virtual hardware. It is free and open-source and offers excellent performance for Linux-based environments.

►VirtualBox is another free and open-source option. It allows users to run multiple systems on a physical machine and support various operating systems, including Windows, MacOS X, Linux, Solaris, etc.

Importance: Regularly backup virtual machines

Now lots of projects, software, and businesses running on virtualized environments. You want your VM data to be always accessible and available. So whichever virtual platform you are using, it is important to regularly back up virtual machines to avoid data loss.

Without a VM backup, once your VMs are corrupted or attacked, all businesses running on them can be ruined. To easily perform VM backup, you can turn to a robust backup solution – AOMEI Cyber Backup. This tool allows you to centrally back up all virtual machines to a safe place to ensure the integrity of data.

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Pros of AOMEI Cyber Backup:

• Offer a user-friendly interface and smooth backup process.
• Support various workloads, including VMware, Hyper-V, Windows PCs & servers, and MS SQL databases.
• Multiple backup scheduling options to automatically perform VM backup at a predetermined time.
• Support various backup locations, such as local path, external hard drive, NAS drive, and network share.
• Integration with cloud storage, such as Amazon S3 storage. You can archive backup versions to an Amazon S3 bucket.

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Conclusion

After the acquisition, Broadcom ended the perpetual licensing to subscription and streamlined the product portfolio. These changes can be positive or negative for different customers. If you are not satisfied with these changes, you can also switch to another virtualization.

If you are running critical business and data on virtual machines, it is very import to backup VM. AOMEI Cyber Backup is a great solution to easily backup VMs to a safe location. Once you encounter a data disaster, you can easily get back data and resume business.

Dylan
Dylan · Editor