VMware Unlocked

Key points:

• Broadcom’s acquisition of VMware has led to concerns among customers, partners, and industry watchers about potential changes to the company’s direction and the impact on its products and services.
• The acquisition has also led to some layoffs, changes to the partner program, and a lawsuit filed by AT&T against Broadcom.
• Competitors are trying to attract defectors from VMware, but analysts are not reporting widespread migrations.
• Microsoft and others are also trying to capitalize on the concerns and ambiguity surrounding Broadcom’s control of VMware.

News of Broadcom’s plans to acquire VMware triggered concerns among customers, partners, and industry watchers, many of whom recalled Broadcom’s track record with prior high-profile acquisitions. The $60 billion deal has led to some layoffs, changes to the partner program, and a suit filed by AT&T against Broadcom.

Since the announcement in May 2022, the saga has unfolded, with updates on product roadmaps, licensing changes, and key executive departures. Cloud monitoring body CISPE raised red flags over VMware’s licensing practices, while Gartner warned of the costs of a VMware migration. Meanwhile, competitors like Scale Computing, Nutanix, and Oxide Computer are trying to capitalize on the uncertainty, with some even attempting to attract defectors from VMware.

As the dust settles, it’s clear that the future of VMware is cloudy, with competitors vying for market share and Broadcom’s vision for the company still unclear. Will Microsoft, with its significant control over Azure, try to help shape VMware’s future? Only time will tell, but one thing is certain: the future of VMware is uncertain, and only time will reveal what’s next.

As of late, there has been a lot of speculation about Microsoft’s role in all of this, especially given its significant stake in Azure. Will they provide support to VMware in some way? Only time will tell.

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