VMware Faces Mass Exodus: 35% of Workloads to Migrate by 2028
According to Gartner research VP Julia Palmer, VMware is on the verge of losing a significant chunk of business over the next three years, with 35% of its workloads expected to migrate elsewhere by 2028. This exodus is largely driven by Broadcom's acquisition and subsequent changes that have alienated customers, particularly small- to medium-sized businesses.
The shift in VMware's business model has been met with resistance from many organizations, who are concerned about the increased costs associated with a move from perpetual licenses to subscriptions. Additionally, the bundling of products into fewer, more expensive SKUs (stock-keeping units) and a reduction in the number of channel partners allowed to resell VMware technologies have also contributed to customer dissatisfaction.
Broadcom acquired the virtualization business in November 2023, making sweeping changes that have had far-reaching consequences. "The new VMware business model favors large organizations," Palmer noted. "This has led to a mass migration of workloads to other platforms, particularly public cloud services."
One of the main drivers behind this exodus is the prohibition on hyperscalers like Amazon Web Services (AWS) from reselling VMware subscriptions to cloud services users. This move has prompted many customers to seek alternative solutions, with some organizations already abandoning VMware or planning partial or total migrations.
The impact of these changes will be felt across various industries, with small- to medium-sized businesses being particularly affected. "VMware's shift towards a more expensive and restrictive business model is making it difficult for smaller organizations to continue using their products," said an industry expert, who wished to remain anonymous.
As the migration of workloads continues, VMware faces a significant challenge in retaining its customer base. The company will need to address the concerns of its customers and adapt its business model to meet the changing needs of the market. "VMware must take immediate action to rectify the situation and prevent further losses," Palmer emphasized.
In conclusion, the mass exodus of workloads from VMware is a significant development in the tech industry, with far-reaching consequences for both the company and its customers. As the migration continues, it remains to be seen how VMware will respond to the challenges ahead and whether it can recover from this setback.
Sources:
Gartner research VP Julia Palmer
Industry expert (anonymous)
Broadcom's acquisition of VMware in November 2023
This story was compiled from reports by Ars Technica UK and Ars Technica UK.
