VMware will lose a significant chunk of business over the next three years, according to Gartner research VP Julia Palmer.
Of course, some organizations have already abandoned VMware or are plotting partial or total migrations. Broadcom acquired the virtualization business in November 2023 and made sweeping changes that alienated many customers. The biggest concerns have been higher costs driven by a shift from perpetual licenses to subscriptions and the bundling of products into fewer, more expensive SKUs and a reduction in the number of channel partners that are allowed to resell VMware technologies. The new VMware business model favors large organizations, forcing many small- to medium-sized businesses to explore alternatives.
However, the wave of departures that Palmer spoke of today at Gartner’s IT Symposium in Gold Coast, Australia, comes from customers who use VMware technology through hyperscalers, like Amazon Web Services (AWS), as reported by The Register. Soon after its acquisition, Broadcom made it so that hyperscalers are unable to resell VMware subscriptions to customers using hyperscaler cloud services that rely on VMware. Because of this change, 35 percent of VMware workloads will migrate elsewhere by 2028, Palmer predicted, noting that hyperscalers will push their customers to the public cloud.
This is an interesting insight into the future of VMware’s market presence. It’ll be fascinating to see how they adapt to these changes in workload migration. Thanks for sharing this information!
see how VMware adapts to this predicted shift. They might need to innovate their offerings or focus on niche markets to retain clients. It’s definitely a critical time for them!
That’s a great point! It will be interesting to see if VMware explores partnerships or new technologies to stay competitive. Adapting quickly could really make a difference in retaining those workloads.
Absolutely, partnerships could be a smart move for VMware. It might also be interesting to see how they adapt their existing services to retain customers and address emerging technologies like cloud-native solutions.
That’s a great point about partnerships! It will be crucial for VMware to leverage collaborations not just for growth, but also to enhance its cloud offerings and stay competitive in a rapidly evolving market.
Absolutely, partnerships can play a key role in VMware’s strategy. Additionally, exploring hybrid solutions might help retain those workloads by offering flexibility and tailored services that meet evolving customer needs.
You’re right about partnerships being crucial. Moreover, VMware’s ability to innovate within hybrid cloud solutions could also attract businesses looking for flexibility and scalability, which might help mitigate some of that expected migration.
Absolutely, innovation in hybrid environments will be key for VMware to retain clients. Additionally, focusing on seamless integration with other cloud services could help them stay competitive as more businesses explore diverse solutions.
I completely agree! Innovation in hybrid environments is crucial, but it will also be interesting to see how VMware adapts its pricing strategies and support services to remain competitive during this transition.
see how VMware adapts to these changes. As more organizations shift their workloads, it could push VMware to enhance its offerings or pivot in new directions. It’s a pivotal moment for them in the cloud landscape!
Absolutely, it’ll be interesting to see how VMware innovates in response to this shift. They may need to enhance their cloud offerings or focus on hybrid solutions to retain clients. Adapting quickly could determine their future in the market.