Broadcom’s VMware Streamlines Product Range and Adopts New Licensing Approach

Broadcom Completes VMware Acquisition: A New Era for Infrastructure Technology

Broadcom’s acquisition of VMware marks a significant step in the tech industry, uniting two forward-thinking, innovation-driven organizations. This merger sets the stage for a leading position in infrastructure technology, offering enhanced capabilities for global enterprises in managing private, hybrid, and multi-cloud environments. Our commitment focuses on accelerating innovation, streamlining our offerings, and enriching the ecosystem, all aimed at elevating customer success.

VMware’s Evolution: Portfolio Simplification and Subscription Model Transition

Over the last couple of years, VMware has embarked on a transformative path. By streamlining its product range and shifting from traditional perpetual licensing to a subscription-based model, VMware aims to provide customers with more consistent innovation, quicker benefits realization, and more predictable investment paths.

Milestone Announcement from VMware by Broadcom

We are excited to announce significant advancements in our offerings:

Product Portfolio Overhaul: We’ve undertaken a major overhaul of our product line, making it more accessible and valuable for customers of varying sizes. This move is a response to consistent feedback for simplification.
Embracing Subscription-Based Licensing: We’re moving all VMware by Broadcom solutions to subscription licenses. This includes discontinuing the sale of perpetual licenses, their support, and the hybrid/subscription purchase programs, effective immediately. We’re also introducing a new bring-your-own-subscription license option, enhancing flexibility and portability for validated hybrid cloud endpoints.

Detailed Portfolio Changes

VMware Cloud Foundation: Our flagship solution now comes at half the previous subscription cost and includes enhanced support for activation and lifecycle management, targeting enterprise-class hybrid cloud needs.
VMware vSphere Foundation: Tailored for smaller to mid-sized customers, this integrates vSphere with advanced operations management for optimum performance and insights.
Both solutions offer advanced add-on services like storage, ransomware and disaster recovery, and application platform services.

Shifting to Subscription Licenses

VMware’s transition to a subscription model aligns with the industry’s standard for cloud services. This shift ensures ongoing innovation, faster value realization, and predictable costs. Customers with active perpetual licenses will continue to receive support as per contractual terms. We encourage customers to evaluate their current licenses and consider transitioning to our new subscription offerings for enhanced benefits.

Transformation and Customer Support

This strategic shift in our portfolio and licensing model is a culmination of our efforts to transform our business approach. These steps are designed to empower our customers and partners, providing the necessary tools and flexibility for successful digital transformations.

Frequently Asked Questions

Q: What is VMware by Broadcom announcing?

A: Today, VMware by Broadcom has reached a new milestone in its journey and announced the following:

A dramatic simplification of our product portfolio that allows customers of all sizes to gain more value for their investments in VMware solutions. The portfolio simplification across all VMware by Broadcom divisions stems from customer and partner feedback over the years telling us our offers and go-to-market are too complex.
Complete the transition of all VMware by Broadcom solutions to subscription licenses, with the end of sale of perpetual licenses, Support and Subscription (SnS) renewals for perpetual offerings, and HPP/SPP (generic) credits beginning today. Additionally, we are introducing a bring-your-own-subscription license option, providing license portability to VMware validated hybrid cloud endpoints running VMware Cloud Foundation.

Q: How do these changes benefit customers?

A: Over the past two years, VMware has been on a journey to simplify its portfolio and transition to a subscription model, the industry standard for cloud consumption, and to better serve customers with continuous innovation, faster time to value, and predictable investments. We’re also helping more customers benefit from VMware Cloud Foundation by reducing the list price by half and including higher support service levels including enhanced support for activating the solution and lifecycle management.

Q: Why is this good for partners?

A: The industry has already widely embraced subscription and SaaS, and many partners in our ecosystem have already developed success practices in this area. Subscription and SaaS models provide an opportunity for partners to engage more strategically with customers and deliver higher-value services that drive customer success. It also helps accelerate their own transition to a business model focused on annual recurring revenue.

Q: What are the changes to perpetual licenses?

A: As part of our transition to subscription and a simplified portfolio, beginning today, we will no longer sell perpetual licenses. All offerings will continue to be available as subscriptions going forward. Additionally, we are ending the sale of Support and Subscription (SnS) renewals for perpetual offerings beginning today.

Q: Why make this change from perpetual licenses to subscription?

A: This shift is the natural next step in our multi-year strategy to make it easier for customers to consume both our existing offerings and new innovations. VMware believes that a subscription model supports our customers with the innovation and flexibility they need as they undertake their digital transformations.

Q: Can customers continue to use their perpetual licenses?

A: Yes, customers can continue to use perpetual licenses that they’ve purchased for products.

Q: Can customers still purchase and add additional perpetual licenses after today?

A: After a customer’s effective date for the end of availability of perpetual licenses, customers will not be able to purchase new perpetual licenses. Customers will be able to purchase subscription software or term licenses to supplement or replace their current perpetual-licensed install base.

Q: Can customers renew their Service and Support (SnS) contracts after today?

A: No, customers cannot renew their SnS contracts for perpetual licensed products after today. Broadcom will work with customers to help them “trade in” their perpetual products in exchange for the new subscription products, with upgrade pricing incentives. Customers can contact their VMware account or partner representative to learn more.

Q: Do customers have to collect and submit their perpetual licenses to Broadcom when they “trade-in” their products for subscription?

A: No, Broadcom does not require customers to submit their perpetual licenses to Broadcom when they “trade in” their products for subscription.

Q: Will VMware by Broadcom continue to provide support for active Service and Support (SnS) contracts?

A: We will continue to provide support as defined in contractual commitments.

Q: What will happen to customers’ existing perpetual licenses with active SnS contracts when they are up for renewal?

A: Customers should contact their VMware account or partner representative for upgrade pricing from perpetual to subscription.

Q: What can customers with perpetual licenses do now to prepare?

A: This is an excellent time for customers to assess their current state with VMware infrastructure and management products. We encourage customers to review their inventory of perpetual licenses, including refresh cycles and renewal dates, and become more familiar with VMware’s available subscription offers. Customers should also contact their VMware or partner representative for more information.

Q: What VMware Cloud Foundation division offerings are available for purchase?

A: The product simplification across the VMware Cloud Foundation division stems from customer and partner feedback requesting we reduce the complexity of our offers and go-to-market. Going forward, the VMware Cloud Foundation division will feature two primary offers: VMware Cloud Foundation, the new VMware vSphere Foundation and our Hybrid Cloud services and offers. Additionally, we offer VMware vSphere Standard and VMware vSphere Essentials Plus for deployments with more limited requirements.

Q: What is VMware vSphere Foundation?

A: VMware vSphere Foundation is a new solution that combines our full-featured server virtualization platform, vSphere with intelligent operations management to deliver the best performance, availability, and efficiency with greater visibility and insights. For customers seeking an HCI solution, we offer VMware vSAN as an add-on to vSphere Foundation, which includes all the capabilities of vSAN including vSAN Max.

Q: What happens to customers that have purchased HPP/EPP credits and still have an outstanding balance of unredeemed credits?

A: We are honoring existing agreements and will work with our customers to help with the redemption of credits on our new offerings.

Q: What products and bundles are impacted by this new policy?

A: Here is a list of products impacted by the new licensing policy: