VMware customers seek alternatives amid licensing changes

A vast majority of VMware customers are actively exploring alternatives to their current software, a survey by Rimini Street has found. This comes as no surprise, given the significant price increases and changes in licensing structures implemented since Broadcom’s acquisition of the virtualisation giant.

According to a survey of more than 110 VMware customers conducted in the third quarter of 2024, a staggering 98% of respondents indicated that they are already using, planning to use or considering alternatives for at least a part of their VMware estate. This sentiment is largely driven by financial concerns, with 45% of respondents citing budget constraints as a key reason for seeking alternative platforms.

Adding fuel to the fire are concerns over future price hikes. The study found that 92% of respondents anticipate further price increases from Broadcom within the next 12 to 18 months. This has led many organisations to re-evaluate their dependence on VMware and seek more sustainable offerings for their virtualisation needs.

Interestingly, the research also revealed that VMware customers are generally satisfied with the functionality of their current software, with 79% of respondents noting that their existing perpetually licensed software adequately meets their business requirements. This suggests that the desire to switch is primarily driven by cost and licensing concerns rather than dissatisfaction with the VMware software itself.

“Giving up control over perpetual licenses due to forced vendor subscription models is like turning in keys to your paid-off home to rent the same house from a landlord,” said Rodney Kenyon, group vice-president of Rimini Street’s custom support business.

“The results of this survey highlight that while VMware customers are happy with their software, they are concerned with price increases and changes in licensing, and are seeking alternative strategies,” he added.

The report also noted the growing importance of strategic roadmap services in navigating these changes. With 96% of respondents recognising the value of such services, it’s clear that organisations are looking for expert guidance to help them assess their options and develop a successful migration strategy.

As the hypervisor market continues to evolve, fuelled by advancements in cloud-native technologies and artificial intelligence (AI), organisations are increasingly seeking flexible, scalable offerings that can adapt to their evolving needs, leading them to consider alternatives such as Microsoft Hyper-V, Oracle VirtualBox and Red Hat Virtualization, all of which were cited as popular options being explored by respondents.

Nutanix, another key player, has been offering its Acropolis hypervisor as an alternative, focusing on simplifying operations and reducing costs through hyperconverged infrastructure while cloud giant Amazon Web Services (AWS) recently enhanced its Amazon Q Developer generative AI assistant with capabilities for migrating and modernising VMware workloads.

While the future remains uncertain, one thing is clear: organisations must carefully evaluate their options. Whether it’s retaining their existing VMware deployments with third-party support or migrating to alternative offerings, they need to choose the path that best aligns with their unique needs and long-term objectives.