300% Price Hikes Push Disgruntled VMware Customers Toward Broadcom Rivals

Broadcom acquired VMware for $69 billion a year ago and has since made significant changes to how customers and partners buy and sell VMware offerings. Many clients are unhappy with these changes, which include the end of perpetual license sales and higher CPU core requirements per CPU subscription. As a result, some VMware prices have more than tripled under Broadcom. The company previously sold VMware products under 8,000 SKUs but has now combined them into a few bundle packages. According to Gartner's 2024 Hype Cycle report, the costs and pricing of VMware can increase two or three times due to the new bundling and consumption models. Several VMware customers have reported a 300 percent increase in their VMware costs after Broadcom's takeover. AT&T has claimed an even higher price hike of 1,050 percent and is suing Broadcom over perpetual license support. The company is also exploring VMware alternatives. The changes have pushed some clients to quit using VMware software. The impact of rising costs and overhauls has been significant, with many customers reevaluating their use of VMware products.