Navigating the cloud revolution: VMware by Broadcom’s strategic shift
SoftwareOne North America
Redefining how companies build, buy and manage everything in the cloud.
Over the past year, the technology landscape has undergone significant transformation, which doesn’t show signs of slowing down. One of the larger changes to date (Broadcom’s acquisition of VMware) has sparked discussions about its implications for companies and the broader industry. It is forcing organizations to transform quicker than many planned for or anticipated.
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And to add to all of this, with all the noise around VMware licensing changes to date (with a strong emphasis on SaaS/cloud models), it can be tricky to align your goals with the changes at record speed and precisely know where to begin.
In this edition of The SoftwareOne Scoop, we highlight the buzz around the current landscape of Broadcom licensing, what challenges organizations may face today as a result, and how SoftwareOne is staying ahead.
2023 – The year for transformation (and disruption).?
We keep hearing it: organizations are changing, and how we do business is changing. We know the acquisition shook things up, but what does that look like? Let’s break a few things down.
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November 22nd, 2023 – Broadcom Inc. completes its USD $69bn acquisition of VMware and integrates them into Broadcom as the VMware by Broadcom division. As a result, Broadcom announces changes to its partner ecosystem as well as a simplified portfolio, which can be broken down into two primary offers:
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1.?VMware Cloud Foundation – A hybrid cloud solution designed to help organizations run applications securely. The subscription cost for their flagship solution has decreased by half, so customers can take advantage of the offering.
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2. VMware vSphere Foundation – A new solution designed with mid-size and smaller organizations in mind. Organizations implementing this offering can expect VMware vSphere Foundation to integrate with vSphere, so efficiency and visibility are front and center.
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December 11th, 2023 – VMware by Broadcom also recently transitioned to a subscription-based licensing model and announced the end of sale of its perpetual licenses as well as the renewal of Service and Support (SnS) contracts. Customers can continue to use previously purchased perpetual licenses; however, they will not have access to support and upgrades and must transition into a subscription or term model at renewal if they wish to continue to receive support.
To understand the full list of products impacted by these changes, click here.
Racing the clock – The challenges organizations face today.
1.?There’s no time to delay. Organizations are challenged to quickly understand what they own and develop an infrastructure and strategy that supports their upcoming cloud-based renewals and approach.
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2. Buying additional licenses as you scale. When you start to purchase under this new licensing model, you may not have the choice of picking your desired renewal date – resulting in multiple contract end-dates and ad-hoc licenses, which can impact how effectively you manage your software assets and even result in different tier prices.
3. Read on here. ?
The solution may reside within the question.
Despite where you are in your cloud journey, the rain will keep falling – even if you don’t have an umbrella. What does this mean? Despite all the conversations around what type of environment is best, the push to adopt a cloud-centric approach will continue to emerge, regardless of whether your organization is ready.
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You don’t have to weather the changing storm alone. SoftwareOne is here to help you select the right cloud and feel confident adopting these new licensing models.
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As a VMware by Broadcom Pinnacle Partner, our team of experts remains dedicated to offering top-notch guidance to our clients. The recent decision by VMware by Broadcom to provide products exclusively through subscriptions and bundled offerings underscores the importance of a robust partnership and industry knowledge.
Get started here.