VMware’s Licensing Transformation: Embracing the Shift to Subscriptions

In a significant move reshaping the VMware landscape, Broadcom’s acquisition of VMware has led to the announcement of a transition from perpetual to subscription-based licensing.  

This strategic pivot is set to simplify VMware’s product portfolio and provide customers with continuous innovation and value. 

3 Key Changes in Licensing Model 

1. End of Perpetual Licenses: VMware will no longer sell perpetual licenses. This shift signifies a move towards a more dynamic and flexible subscription model. 
2. Support for Existing Perpetual Licenses: For those currently holding perpetual licenses, VMware assures that active Service and Subscription (SnS) agreements will be honored. However, upon their expiry, support renewal will only be available under the new subscription model. 
3. Bring-Your-Own-Subscription Option: A notable addition is the ‘bring-your-own-subscription’ option, facilitating license portability to VMware-validated hybrid cloud endpoints running on the VMware Cloud Foundation platform. 

Implications for Businesses and Users 

Businesses with existing perpetual licenses can continue to use them until their contracts expire. Post-expiration, they will need to transition to subscription licenses for continued support. It is critical to note that this transition is voluntary and attractive incentives are available for those opting to exchange their perpetual licenses for subscriptions. 

“The new subscription model introduced by VMware offers a lot of benefits, including greater flexibility, simplified licensing, and access to the latest innovations. At evoila, we are excited to help our clients leverage these advantages to enhance their IT infrastructure.” 

Christian Müller, Head of Partner at evoila 

Preparing for the Transition 

Businesses are encouraged to review their current VMware infrastructure and perpetual licenses, assessing their renewal dates and planning for a transition to subscription models. This is an opportune moment to re-evaluate IT strategies and align them with the new VMware offerings. 

Simplified Product Offerings 

The simplification of VMware’s product portfolio aims to reduce complexity, making it easier for customers of all sizes to understand and derive value from VMware solutions. Key offerings now include VMware Cloud Foundation, VMware vSphere Foundation, VMware vSphere Standard, and VMware vSphere Essentials Plus, with add-ons like vSAN available for enhanced functionality. 

How evoila Can Help Navigate VMware’s Licensing Transition 

As VMware embraces a subscription-based licensing model, evoila stands ready to guide and support your business through this significant change: 

• Customized Consultation: We provide strategic, personalized advice to align with your specific infrastructure and business goals during the transition. 
• License Optimization: Leverage our expertise to maximize the benefits of your subscription licenses, ensuring a balance between cost-efficiency and functionality. 
• Dedicated Support: Count on evoila for ongoing support and management, helping you adapt and fully utilize the advantages of VMware’s new model. 

“At evoila, we understand that change, especially of this magnitude, can be challenging. Our team is committed to guiding you through these changes while at the same time ensuring that your transition to VMware’s subscription model is as seamless and beneficial as possible. We are here to turn this transition into an opportunity for innovation and growth for your business.” 

Lars Göbel, CRO at evoila 

Conclusion 

This transition represents a strategic shift towards simplification and innovation in VMware’s business model. It’s an opportunity for businesses to reassess and enhance their VMware strategies. With evoila’s support, you can confidently embrace these new possibilities, ensuring your IT operations are efficient, up-to-date, and ready for future growth.