VMware Transformation: Navigating Changes, Embracing Subscriptions, and Unveiling Opportunities

Maciej Lelusz
20. December 2023
Reading time: 5 min
VMware Transformation: Navigating Changes, Embracing Subscriptions, and Unveiling Opportunities

VMware’s reorganization by Broadcom has achieved a new milestone through the announcement of significant simplification of its product portfolio, which has grown to incomprehensible proportions in recent years. This announcement aims to enable customers, regardless of size, to gain a better understanding of the VMware portfolio. This approach stems from the feedback of customers and partners who have long expressed that the market entry strategy and offerings are too complex, with products often appearing to compete with each other.

Such a drastic simplification of the product portfolio encompasses all divisions of VMware. As part of the announcement, all VMware solutions by Broadcom will transition to subscription licenses, simultaneously eliminating the sale of perpetual licenses, renewals of Support and Subscription (SnS) for perpetual offerings, and HPP/SPP credits (general). Additionally, an option for “bring-your-own-subscription” will be introduced, allowing the transfer of licenses to VMware-verified hybrid cloud points operating on the VMware Cloud Foundation platform.

What about perpetual licenses?

The first warning bells rang with VMware’s announcement that they will no longer sell perpetual licenses from today onwards. All offerings will be available exclusively in the form of subscriptions. What does this mean for those who have enjoyed perpetual licenses until now? Is the future turning into a subscription-only cloud, or is this a step that will make life easier for customers?

According to VMware representatives, this is a natural step in a long-term strategy aimed at facilitating customers to use both existing products and new innovations. However, will everyone be receptive to this new reality? The comforting news is that those who already possess perpetual licenses can continue to use them. However, for those who planned to acquire new ones, the clock has already struck the final moments.

As of December 11, 2023, there is no longer the possibility of purchasing new perpetual licenses. Interestingly, VMware is not only closing the door to perpetual licenses but also ending the sale of support renewals for these products. This means that customers will not be able to extend support agreements for their existing perpetual licenses – they can choose not to renew and go without support or renew, but only in a subscription model. Broadcom, the current owner of VMware, proposes a kind of exchange to its customers – swap perpetual for temporary, and we will provide favorable terms. Is this an offer that cannot be refused, or is it a trap for the unsuspecting? It’s worth noting that Broadcom does not require customers to return their perpetual licenses during the “exchange” for a subscription. This is certainly good news for those who feared losing control of their software.

What about SnS?

The next question that naturally arises is whether VMware, now under the wing of Broadcom, will continue to support active Service and Subscription (SnS) agreements. The answer is: Yes, contractual commitments will be fully honored, meaning that support should not undergo changes. Another issue that raised concerns was the fate of existing perpetual licenses with active SnS agreements during their extensions. It turns out there is no reason to panic. Broadcom assured that all extension and update processes will continue, leaving some uncertainty with the phrase “in case of doubt, please contact a VMware representative.”

How to prepare for the upcoming changes?

This is a question that many are asking themselves now. It seems like this is the last moment to review your current VMware infrastructure. Discover the skeletons in the closet in the form of your perpetual licenses, check their renewal dates.

VMware Cloud Foundation vs. VMware vSphere

Moving on to offerings from the VMware Cloud Foundation area, the company tirelessly emphasizes that the changes stem from customer and partner feedback, aiming for a reduction in the complexity of offerings and market strategies. Now, two main proposals stand before us: VMware Cloud Foundation and the new VMware vSphere Foundation, along with hybrid cloud services and offerings. For those with more modest needs, VMware vSphere Standard and VMware vSphere Essentials Plus are also available.

So, what is VMware vSphere Foundation?

It is a solution that combines server virtualization of vSphere with operational management. The proposal provides not only excellent performance, availability, and efficiency but also better visibility and insight into the infrastructure. For HCI enthusiasts, VMware also offers vSAN as an add-on to vSphere Foundation, encompassing all vSAN features, including vSAN Max.

In conclusion, it’s worth mentioning customers with unused HPP/EPP credits. Here too, VMware advocates for the continuation of agreements and declares readiness to assist in utilizing credits for new offerings.

In summary, changes in VMware are a reality, but as the provider itself claims, the priority is continuous customer support. Now is the time to understand the new possibilities and adapt to the evolving reality. Let’s be ready for new, innovative solutions that may arise from this fascinating change. After all, in the world of IT, the only constant is constant change.