Broadcom Cuts Price: VMware "Perpetual" to "Subscription"?

In November 2023, Broadcom completed its acquisition of VMware for $61 billion, a move that sent shockwaves throughout the entire industry. More interestingly, Broadcom cancelled VMware's local perpetual licenses and is set to stop selling support and subscription (SnS) renewals to VMware customers, forcing those customers to only use a subscription model.

Those VMware customers lucky enough to have VMware perpetual licenses and active support contracts can continue to use them. However, Krish Prasad, senior vice president and general manager of VMware's Cloud Infrastructure division, wrote in a statement that VMware "will continue to provide the support promised in the contract." But when a customer's SnS term expires, they won't be able to get any more support.

VMware customers caught in subscription dilemma?

A software subscription is actually a change in the way you buy software from a perpetual buyout to a time-based payment. Once you get on the last train of subscription, you have to pay money every year/month to keep it. Microsoft 365, for example, Office can be previously bought out, but now you have to pay regularly. VMware is also forced to follow the trend, from a one-shot deal into a periodic rolling payment.

For a long time, VMware's local customers have been accustomed to a one-time purchase, perpetual use model. However, Broadcom's sudden decision to cancel VMware's licenses perpetual has increased the anxiety of some VMware customers. Some say the subscription model may give users more flexibility to adjust the size and duration of their usage, but others worry that it just puts the vendor in control of the user's wallet, and may lead to software blackmail in the future.

VMware's payment model shift, 5 hurdles for users

The new "rent" era: VMware perpetual licenses have become periodic renewals meaning that users need to pay regularly, just like a music or video subscription, now you have to pay "rent" every year.

Stability of service: If you miss a renewal, not only do you lose your service, but you may also be involved in piracy issues. This means that users who continue to use the service after the subscription has been canceled may become pirates, which carries some legal risks.

Updates and upgrades: Under the subscription model, VMware may periodically release new versions or upgrade packages, and users need to update their software regularly to keep the service available and secure.

Flexibility: The subscription model allows flexibility in scaling the size and duration of usage based on demand. Users with short-term or temporary needs can choose the subscription time and usage on demand, reducing costs. However, for customers who are looking for stability, they have to face the risk of price increases from time to time. It is a bit like renting an apartment, worrying that the landlord is going to make another "annual price adjustment".

Invisible price increases: Service fees charged by the number of CPU cores, for high-computing power CPU, the cost will have to pay more out of pocket, like a buffet restaurant, the more you eat, the more money you pay.

Get rid of VMware hassles, Vinchin Backup & Recovery takes you flying!

Considering Broadcom's prior acquisition history, such as the acquisition of Symantec, many customers hold an extremely negative view of VMware's current acquisition. For users, the most urgent task now is to find alternatives to VMware. V2V migration tools are an effective solution. Through V2V migration, users can transfer their virtualized environment from the VMware platform to other alternative platforms, reducing costs, improving security, and flexibility.

Vinchin Backup & Recovery is a reliable choice. Vinchin offers an integrated solution that helps users quickly and safely migrate their virtual machines and data from VMware to other virtualization platforms such as KVM or Hyper-V. It supports migration across 10+ virtual platforms, providing a user-friendly interface and powerful functionality to ensure data integrity and security throughout the migration process.

Below is a demonstration of the process to convert a VMware VM to a Proxmox VM using Vinchin Backup & Recovery:

1.  Select the backup of the VMware VM > click Next

2. Choose the Proxmox host as the target host > click Next

3. Select One-Time Restore > click Next

4. Submit the job

Vinchin offers a 60-day free trial period, allowing users to experience its functionality in real-world environments. If you need more information, please feel free to contact Vinchin directly or reach out to our local partners. Vinchin is happy to provide assistance and support.

V2V FAQs

Q1: How has VMware's price increase impacted the IT industry?

A1: VMware's price increase has catalyzed a chain reaction in the IT industry, affecting its entire ecosystem. Organizations already using VMware products are burdened with additional financial strains, necessitating adjustments to their budget plans. Meanwhile, organizations yet to adopt VMware are compelled to reassess their purchase decisions due to pricing uncertainties.

Q2: Does Vinchin Backup & Recovery support migrating VMs from Proxmox to VMware?

A2: Yes, Vinchin supports users in migrating VMs from Proxmox to VMware. Vinchin also supports autonomous conversion among over 10 other platforms, providing users with greater flexibility and options.

Conclusion

Broadcom's acquisition of VMware in November 2023, causing the cancellation of VMware licenses perpetual, has left VMware customers facing a subscription dilemma. Vinchin Backup & Recovery offers a solution with V2V migration tools and a 60-day free trial, providing flexibility and support in transitioning to alternative platforms.