VMware Users React: Navigating the Impact of the Broadcom Acquisition

Those in the cloud computing and virtualization space have long heard of VMware because of its domination in the market. In fact, your organization has likely utilized their products at some point. However, as of late 2023, the global infrastructure technology giant Broadcom acquired VMware to enter the cloud market.

This decision and action have resulted in unforeseen challenges and concerns for organizations that utilize VMware’s technology. Understanding these potential repercussions and how they may impact your business can help you get ahead as the residual effects of this acquisition continue to develop in the near future.

The Major Concerns of the Acquisition

The opinions of companies within the cloud computing and visualization space regarding the acquisition are generally mixed. Some organizations have chosen to remain the same with their reliance on VMware products, whereas others have now decided to move away. The primary reasons for this shift are three main concerns with the acquisition:

Staffing Concerns

It is currently estimated that as a result of the acquisition, a number of popular VMware products may become either obsolete or disintegrated from the market. This would result in a large number of accredited VMware engineers either moving to other platforms of their own accord or being laid off.

Additionally, the future talent pipeline risks being damaged by events such as the discontinuation of the free ESXi version of the platform. This allowed both students and those at home to experiment with the platform and build critical skills and VMware experience, but without it, there is likely to be a shortage of future talent.

Unclear Pricing for the Future

A major consequence of the acquisition was the sudden increase in expenses, which was felt most strongly by smaller businesses with a limited budget. This has forced many organizations to consider whether or not they should stick solely with VMware or adopt a hybrid model. Unfortunately, alternative vendors have also seen the influx of business and increased their prices due to the surplus of demand, meaning switching to another provider ultimately may not be affordable.

The Synergy of Products

Finally, the third major concern and consequence of the acquisition has to do with the synergy or products between Broadcom and VMware. This is Broadcom’s first venture into the cloud, but they have divested away from many of VMware’s end-user computing products only shortly after making the acquisition. Horizon View and Workspace ONE, two major integrated offerings, were sold off already as an example.

Given that these and other offerings were typically bundled together with additional VMware products, it’s possible that consumers may now need to purchase more licenses. Certain companies may not even be able to work with the third-party providers who now own the technology too.

Consider your IT choices

It’s no easy decision to determine whether or not sticking with VMware is suitable for your organization. Larger companies that do not care about the nuances of their IT departments may not even notice a difference following this acquisition. Still, many other businesses may run into the issues above.

For those with a business located in the Akron, Columbus, or Cleveland areas and in need of advice on how to navigate the IT world post-acquisition of VMware, reach out to us at Warwick right away. Our expertise in the IT infrastructure and cloud computing space means we can assist you in determining the next step forward for your business.