Broadcom's VMware acquisition sparks customer outrage

In November 2023, Broadcom acquired VMware, which has caused extensive dissatisfaction among VMware's customers. Since the acquisition, numerous companies have expressed concern about the direction in which Broadcom is taking VMware's services. A notable increase in prices, with reports of 3 to 6 times higher rates on average, has led organizations to question their future relationship with VMware. Spinnaker's VMware support business, which began operations following this acquisition, has experienced an influx of inquiries as a significant number of customers seek support alternatives. Customers have reported instances where they were directed to third-party distributors for support instead of receiving assistance directly from VMware. The pressure on customers has mounted as VMware pushes for either longer subscription commitments or the abandonment of its services altogether. Reports indicate that Broadcom is favoring two- to three-year subscriptions, driving the urgency for businesses to decide. Many organizations are facing a difficult choice between continuing with VMware and the expensive implications of staying under Broadcom's reign, or migrating to new platforms, which is often a daunting and costly task. Gartner's research highlights the burdens associated with large-scale migrations off VMware, further complicating decisions for IT managers across the industry. As companies weigh their options, the comments from a food manufacturer's IT manager illustrate a broader sentiment. They articulated a willingness to reconsider VMware if it were to offer flexible subscriptions, reflecting the tension between price hikes and service retention. The situation is increasingly complex, as businesses feel the pressure to either adapt to a changing VMware environment under Broadcom or undertake the substantial task of migrating their virtual workloads to alternative solutions. The ongoing concerns regarding VMware's support structure and pricing model have, undoubtedly, left customers in a precarious position, with long-term implications that will impact their technology strategies for years to come. Overall, the situation demonstrates the challenges posed by Broadcom's ownership of VMware and the significant shifts it has prompted in customer dynamics. Customers are grappling with the prospect of higher costs, reduced support options, and the burdens of migrating away from VMware, all of which are compounded by the looming deadlines for making commitments to the platform.