"VMware Faces Mass Exodus: 35% of Workloads to Abandon Platform by 2028"

VMware Faces Mass Exodus: 35% of Workloads to Migrate by 2028 A significant loss of business is looming for VMware, with Gartner research VP Julia Palmer predicting that 35% of its workloads will migrate to other platforms by 2028. This exodus is largely driven by Broadcom's acquisition and subsequent changes that have alienated customers, particularly small- to medium-sized businesses, through increased costs and reduced channel partner options. According to a report from Gartner, the shift in VMware's business model has led to widespread dissatisfaction among its customer base. The company's decision to move from perpetual licenses to subscriptions and bundle products into fewer, more expensive SKUs (stock-keeping units) has resulted in higher costs for many organizations. Additionally, Broadcom's reduction in the number of channel partners allowed to resell VMware technologies has further limited customers' options. The impact of these changes is not limited to on-premises deployments. Hyperscalers like Amazon Web Services (AWS), which were previously allowed to resell VMware subscriptions to cloud services users, are now prohibited from doing so. This has prompted a mass migration of workloads to the public cloud, further exacerbating VMware's loss of business. The changes implemented by Broadcom since its acquisition of VMware in November 2023 have been significant. According to Gartner research VP Julia Palmer, "the new VMware business model favors large organizations with deep pockets." This shift has left many smaller businesses struggling to adapt to the increased costs and reduced flexibility offered by the company's new offerings. Industry experts warn that the loss of business for VMware will not be limited to just a few years. "We expect to see a significant decline in VMware's market share over the next three years," said Palmer. This prediction is supported by Gartner's research, which suggests that 35% of VMware workloads will migrate elsewhere by 2028. The implications of this mass exodus are far-reaching and have significant consequences for organizations relying on VMware technologies. As one industry expert noted, "the loss of business for VMware will not only impact the company itself but also its ecosystem of partners and customers." The current status of VMware's business model and its future prospects remain uncertain, leaving many to wonder what the next steps will be for the company. In a statement, Broadcom acknowledged the changes it has made to VMware's business model but declined to comment further on the impact of these changes. As the situation continues to unfold, one thing is clear: the future of VMware and its customers hangs in the balance. This story was compiled from reports by Ars Technica UK and Ars Technica UK.