Companies Abandon VMware Due to Price Increases

Companies Abandon VMware Due to Price Increases

13:51, 05.12.2024

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  • Broadcom's Strategy: Focus on Large Enterprises

After VMware was acquired by Broadcom, many organizations began switching to alternative platforms. A notable example is the British provider Beeks Group, which completely replaced VMware with OpenNebula. Such cases are becoming increasingly common.

Even the European Union's antitrust authorities, known for their effectiveness, have been unable to influence the situation. Broadcom continues its aggressive pricing strategy: over the past year, the cost of VMware subscriptions for some clients has increased by up to ten times. Small and medium-sized businesses have been left at a disadvantage.

Broadcom's Strategy: Focus on Large Enterprises

Experts believe that Broadcom is deliberately targeting large enterprises, which generate the majority of its revenue. Small clients face intolerable conditions: the closure of popular products, the discontinuation of free versions of the hypervisor, and stricter licensing requirements. For instance, the minimum number of cores required for a license has risen to 3,500, and support has been transferred to larger partners.

Against this backdrop, OpenNebula actively promotes its services, offering automatic migration and significant cost savings. According to their data, using OpenNebula can reduce expenses by 5 to 30 times, providing flexibility and avoiding vendor lock-in.

As a result, companies are leaving VMware en masse. Beeks Group, which manages over 20,000 virtual machines, is just one of many organizations that have chosen OpenNebula as a more affordable and flexible solution.

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