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It is time to get ahead of the VMware licensing changes and plan ahead. Chances are if your environment runs on VMware, costs are going up. See the overview below.

Do not get caught with your guard down. It is time to reevaluate all options such as Azure, AWS, and GCP. Those egress/ingress fees might not be so bad.

VMware Licensing Changes: Transitioning to a Subscription Model

Broadcom’s recent changes to VMware’s licensing model will transition customers from perpetual licenses to a subscription-based model. This shift aims to drive increased recurring revenue over the next three years.

Customers can no longer purchase perpetual licenses and will instead need to subscribe to VMware products and support. Broadcom expects to leverage this change to grow VMware’s revenue from $4.7 billion to $8.5 billion within three years.

Implications for Customers

The transition carries both financial and operational implications that customers must plan for:

➡️ Customers with active perpetual licenses can continue using them but will need to subscribe once support contracts expire.

➡️ Broadcom offers trade-in incentives for customers to exchange perpetual licenses for subscription products, aiming to ease the transition while maintaining continuity.

➡️ Businesses should carefully evaluate current VMware usage and contracts to effectively adapt to these changes. Strategic planning is critical, especially for imminent contract renewals or new solutions.

Best Practices for Navigating the Transition

To smoothly transition licensing models, customers and partners should take the following actions:

➡️ Conduct a comprehensive license audit to understand the implications on current/future projects.

➡️ Develop a roadmap to plan the transition from perpetual to subscription licenses across departments.

➡️ Leverage available financial incentives for an earlier, potentially cost-beneficial transition.

– Stay informed on updates through resources like webinars, and seek expert guidance.

By thoroughly understanding implications, leveraging incentives, and developing strategic roadmaps, businesses can navigate this shift to subscription licensing in an efficient manner.