Is a VMware exodus looming? Disgruntled customers are actively seeking alternative providers or exploring open source options in the wake of Broadcom’s acquisition
VMware customers are becoming increasingly frustrated with uncertainty and spiraling licensing costs, new research suggests, after its acquisition by IT giant Broadcom.
Research from Civo found more than half (51.9%) of VMware customers were considering ditching services after Broadcom finalized its acquisition of the cloud computing and virtualization firm.
After a series of drastic changes to its operating model including the removal of a series of popular licenses and products, 48.7% of VMware customers told Civo they were actively exploring alternative cloud providers.
Two of the top three priorities respondents said they were looking for in a new provider were flexibility and fair and open pricing, as mounting costs and vendor lock-in concerns make VMware an increasingly unappealing value proposition for businesses.
Open source was cited as a popular potential alternative, with 44.8% of current VMware customers stating they were considering migrating to open source solutions.
But businesses do have some concerns around making the switch to open source, Civo found, with 28.6% of respondents noting they were worried about the state of open source security.
A further 23.2% stated the lack of support and service level agreements (SLAs) in the open source ecosystem was another factor preventing them from making the switch.
Hock Tan, CEO at Broadcom, struck on this point speaking on stage at VMware Explore earlier this month in Las Vegas, declaring “the future is private” and insisting that the changes made at VMware have centered around this mantra.
Broadcom’s overhaul of VMware’s operating model has caused widespread consternation among customers.
Tan claimed these changes were centered around removing unnecessary complexity, driving down costs, and improving security, positioning VMware’s flagship Cloud Foundation product as the single private cloud platform that businesses need.
But stakeholders have not been so receptive to the changes Broadcom has implemented since taking the reins at VMware.
The Cloud Infrastructure Service Providers in Europe (CISPE) consortium slammed Broadcom, accusing it of “holding the sector to ransom” with its licensing changes.
In March, it called on EU regulators to investigate the changes it had implemented, namely unilaterally canceling license terms for virtualization software many firms rely on, claiming they could “decimate” the region’s cloud infrastructure.
Commenting on the results of its recent study, Henry Godwin, VP of global sales at Civo, said he’s heard widespread complaints among VMware customers, labeling the current situation with ballooning prices untenable.
“We’ve heard from a lot of concerned VMware customers over the previous nine months. Ultimately, businesses want certainty. They cannot continue in a situation where prices are skyrocketing, without any parallel improvement in service,” he reported.
“What we’re beginning to see now is these dissatisfied customers look elsewhere. While open-source solutions have a significant allure due to the predictability in pricing, users also want to receive support, both on-prem and with their migration., Providers must respond to these evolving customer needs by ensuring that they deliver not just on cost, but on security, support, and service reliability.”
ITPro approached Broadcom for comment on Civo’s findings, but did not receive a response.
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