Know that you need to act now
With a change of this magnitude, it’s never too soon to start planning what happens next with your renewals and new licenses. Start now!
Are you using VMware solutions? Then your world has changed, and there are things you need to know.
On 22 November 2023, Broadcom completed its USD $69bn acquisition of VMware and integrated them into Broadcom as the VMware by Broadcom division. This marks a fresh phase in cloud technology as Broadcom builds out its multi-cloud (hybrid) strategy.
Amongst many other changes, we can now expect to see significant resources going into VMware Cloud Foundation, a fundamental software framework for these cloud systems. There is also an instant move away from perpetual licensing. And, crucially, there will be reinforcement of a subscription model together with the introduction of new bundled offerings designed to fundamentally reshape the way you engage with VMware products. Plus, of course, there will be implications for the relationship between Broadcom and its partners — including SoftwareOne.
Top 4 Takeaways
Frankly speaking, there is a lot to unpack here and customers are rightly looking for a simple explanation of what it all means for them.
With that in mind, I recently hosted a webinar with a panel of SoftwareOne experts exploring the changes and the impact they will create for customers like you. Featuring SoftwareOne’s award-winning expertise, you’ll find the webinar is a good way to invest 30 minutes of your time. If you’d like an at-a-glance guide right now here are my top 4 “need to know” takeaways:
You need to know what happens about perpetual license renewals
VMware announced the end of life for SnS/Maintenance back in December 2023, meaning renewals are no longer possible. You can still use your current perpetual licenses but won’t have access to support and upgrades. That is far from ideal. If you want support and upgrades, you will need to buy the new subscription products from now on.
You need to know what happens if you want to buy additional licenses
Licensing for individual products will no longer be available. From now on, you will only be able to buy the new VMware by Broadcom products via subscription. With that being the case, we strongly recommend you switch all your perpetual licenses at the same time to have a consistent and consolidated installed base and renewal date.
You need to know what happens with renewal dates or new purchases for End User Computing (EUC) and Carbon Black Solutions
Changes are unfolding here too with KKR announcing their $3.8bn purchase of the EUC division from Broadcom, and Carbon Black Solutions being integrated into Broadcom’s Symantec division.
Ecosystem implications
In addition to these adjustments to product configuration and licensing, look out for significant changes within the partner ecosystem too.
All legacy VMware Partners received termination letters effective from 2 February 2024. There have also been various reports suggesting that VMware by Broadcom will now attempt to deal directly with its top 2,000 customers (“strategic customer segments”), which means these customers will not be able to access the support and services they traditionally expected from partners.
For customers who are concerned about any of this, SoftwareOne can offer a lot of reassurance. We are award-winning VMware experts and have a place within the highest partner tier (‘Pinnacle’) of the Broadcom Advantage Partner Program in 50+ countries across the world. This means we can continue to offer the highest levels of service to existing and new customers wherever they need it as the VMware by Broadcom changes continue to roll out.
If you have any concerns, check if your legacy VMware partner has enrolled in the new program and whether you are confident they can deliver everything you need in this rapidly changing environment.
If not, know that we are ready for this new era and more than happy to offer you our support. In addition, we will also continue to serve our VMware EUC customers even as this division transitions to new ownership.
We're also pleased to announce that we recently received the "Highest Performer" award for the EMEA region from Broadcom. This accolade is typically reserved for top partners supporting VMware by Broadcom. As a VMware partner in nearly 50 countries, the judges felt that SoftwareOne exemplified excellence in this category.
With over two decades of experience, SoftwareOne has invested significantly to become one of the few global partners capable of covering all aspects of the VMware spectrum. Our ability to expand the VMware portfolio within existing customer bases has positioned us as one of the largest partners worldwide. The award reflects this extensive experience in numerous VMware projects, providing customers with optimal value for their VMware investment.
Conclusions
This isn’t a change which can be ignored and you can be certain that your next transaction with VMware by Broadcom will be different from anything you’ve experienced before. I’d recommend that you check your renewal dates today and then start planning for what comes next. To give just one example of why that needs to happen, experience shows that new solution bundles raise the level of complexity and create a need for cross-department discussions and detailed budget planning. And new bundles are only one aspect of what you’ll need to navigate in this new VMware by Broadcom world.
Need to know more?
Fully understand what VMware by Broadcom means for you. Naturally, you can also reach out to your SoftwareOne contact to analyse your current situation and discuss the next steps— or take advantage of our VMware Advisory Services for detailed advice and recommendations
Need to know more?
Fully understand what VMware by Broadcom means for you. Naturally, you can also reach out to your SoftwareOne contact to analyse your current situation and discuss the next steps— or take advantage of our VMware Advisory Services for detailed advice and recommendations
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