HomeWinBuzzer NewsBroadcom Announces Adjustments to VMware Subscription Model Amid Customer Feedback

Broadcom Announces Adjustments to VMware Subscription Model Amid Customer Feedback

Broadcom tweaks VMware subscriptions to ease customer concerns. They admit challenges and offer extended support for perpetual licenses


Broadcom has introduced modifications to its subscription model, addressing concerns from customers reluctant to transition from their perpetual licenses. In a statement, Broadcom CEO Hock Tan acknowledged the complexity and integration challenges within VMware's portfolio, which he believes have hindered its competitiveness against hyperscale cloud services. Tan emphasized that Broadcom's investment in research and development will enhance VMware's Cloud Foundation suite, making it more robust and user-friendly. However, he conceded that the transition has not been smooth for customers, leading to the recent adjustments.

Customer-Centric Changes Introduced

Responding to feedback, Broadcom has decided to extend support for customers facing renewals during the transition period. This move marks a departure from Broadcom's previous stance, signaling a willingness to accommodate customer needs more flexibly. Additionally, Broadcom has committed to providing ongoing security patches for supported versions of vSphere, with plans to include other VMware products over time. This initiative aims to ensure that customers with expired maintenance and support contracts, who opt not to subscribe to Broadcom's offerings, can continue using their perpetual licenses securely. Broadcom announced its acquisition of VMware in November 2023, in a deal worth $61 billion. 

European Regulatory Scrutiny and Market Predictions

The announcement coincides with reports of European antitrust authorities questioning Broadcom's changes, following concerns raised by the Euro-cloud consortium CISPE and several European tech-buyer trade associations. While it remains unclear if the regulatory action directly influenced Broadcom's decision, the timing suggests a potential connection. Furthermore, The Register reports on Gartner's “Market Guide for Full-Stack HCI Software” has predicted a significant shift in the hyperconverged infrastructure (HCI) market, with VMware's share expected to decline. This forecast, coupled with the inclusion of three Chinese HCI providers as representative vendors, indicates a rapidly evolving market landscape, potentially impacting Broadcom's strategy.

By extending support and providing security patches for perpetual licenses, Broadcom aims to facilitate a smoother transition for its customers while navigating the complexities of global market dynamics and regulatory scrutiny.

Luke Jones
Luke Jones
Luke has been writing about all things tech for more than five years. He is following Microsoft closely to bring you the latest news about Windows, Office, Azure, Skype, HoloLens and all the rest of their products.

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