Nine in 10 VMware customers consider switching over higher licensing costs
A survey of 269 VMware customers conducted between December 2025 and February 2026 found that nine in ten are considering switching to alternative virtualization providers due to significantly higher licensing costs. The research, sponsored by third-party support provider Rimini Street, reveals mounting customer frustration following Broadcom's 2022 acquisition of VMware and the consequent changes to its licensing model.
Beyond cost concerns, 54 per cent of respondents cited the end of perpetual licence support as a reason to explore alternatives, whilst 73 per cent identified cost savings as a top priority for their virtualization strategy. However, adoption of Broadcom's preferred migration path (VMware Cloud Foundation) remains limited, with 48 per cent reporting no plans to transition. The European Cloud Competition Observatory claimed in May 2025 that licensing costs had increased between eight and fifteen times original levels, and industry analyst Gartner projects that 55 per cent of enterprises will trial alternatives by 2029.
- Nine in ten VMware customers exploring alternatives due to Broadcom licensing surges
- Nearly half rejecting Broadcom's preferred platform; operational complexity cited as barrier
- Gartner predicts 55 per cent of enterprises will test replacements by 2029
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VMware is software that allows companies to run multiple virtual computers on a single physical server, which saves money and space. It has been the industry standard for this technology for decades, used by countless businesses worldwide to manage their IT infrastructure.
In 2022, technology company Broadcom acquired VMware and changed how the software is licensed and priced. Where customers previously paid a one-off fee for a perpetual licence, the new model involves considerably higher ongoing costs.
The increase in licensing fees has prompted many VMware customers to evaluate switching to alternative virtualization providers. This potential shift in the market represents a significant business challenge for Broadcom and could reshape how organisations manage their computing infrastructure.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Nine in ten surveyed customers regard current pricing as prohibitive. An eight-to-fifteen-fold cost increase substantially exceeds technology inflation and presents significant financial burden for organisations dependent on VMware infrastructure, particularly smaller enterprises constrained by limited IT budgets. The elimination of perpetual licensing removes customer autonomy and mandates recurring subscription costs without viable alternatives.
The case against
Broadcom's subscription model reflects industry-standard practice for delivering continuous security updates and innovation that perpetual licences cannot sustainably support. The acquisition required substantial capital investment requiring recovery through appropriate pricing, whilst customers retain genuine choice—nearly half indicate no intention to adopt Broadcom's platforms and can freely migrate to competitors. The survey's sponsorship by Rimini Street, a support provider profiting from customer switching, introduces potential methodological concerns regarding bias.
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Originally published by The Register as “Nine in 10 VMware customers eye the exit as licensing bills bite”.