VMware by Broadcom Simplifies Portfolio and Licensing Model

In November 2023, Broadcom acquired VMware.

Broadcom’s main goal is to help businesses build and update their private and hybrid cloud systems.

They plan to do this by:

1. Investing in VMware Cloud Foundation: This software is the core building block for private and hybrid clouds, and Broadcom will put money into improving it.
2. Offering additional VMware services: These services will help businesses modernise and optimise their cloud and edge environments. Examples include:
   • VMware Tanzu: Speeds up application deployment.
   • Application Networking and Advanced Security: Improves network performance and security.
   • VMware Software-Defined Edge: Manages devices at the edge of the network.

Overall, Broadcom is aiming to become a major player in the private and hybrid cloud market by providing the tools and services that businesses need.

Simplified VMware portfolio

Going forward there will be two primary offers for clients:

• VMware Cloud Foundation: Flagship hybrid cloud solution for large enterprises, now at half the price with enhanced support.
• VMware vSphere Foundation: New, simplified workload platform for smaller businesses, integrating vSphere with intelligent management.

There will also be optional add-ons for both offers:

• Storage, disaster recovery, and application platform services.
• Application Network and Security (for Cloud Foundation only).

Plus, there will be more advanced services coming soon, including Private AI.

Streamlining portfolio with two clear options catered to different business sizes, making Cloud Foundation more accessible, and expanding future service offerings.

Subscription model

From now on, VMware will solely be available as subscriptions or as term licences following the end of the sale of perpetual licences and Support and Subscription (SnS) renewals.

However, you may continue using perpetual licences with active support contracts. VMware will continue to provide support as defined in contractual commitments. VMware encourages customers to review their inventory of perpetual licences, including Support Services renewal and expiration dates.

If you have any questions about this, please refer to the FAQ or get in touch with us by filling out the form below.

Grey Matter is a VMware reseller.