Technology advisors and customers are at a crossroads, with Broadcom’s VMware pricing and licensing changes driving higher costs and complexity and forcing many organizations to reassess their infrastructure strategies. The ongoing VMware saga stretches back to 2023, when Broadcom acquired the company for $61 billion. The deal combined Broadcom’s strong infrastructure portfolio with VMware’s virtualization and cloud software. However, it also reshaped VMware’s commercial model, resulting in fewer options. Following the acquisition, Broadcom implemented sweeping changes to streamline operations and enhance profitability. Some of these changes included replacing perpetual licenses with subscription-only models, increasing minimum core requirements and reducing VMware’s product portfolio. The company has consolidated its product bundles from 168 to four, including VMware Cloud Foundation (VCF), VMware vSphere Standard, VMware vSphere Foundation and VMware vSphere Essentials Plus. Among other changes, Broadcom also eliminated VMware’s white- label model and introduced late renewal penalties for customers that fail to renew their subscriptions on time. And in January, Broadcom ended the Advantage Partner Program for VCSPs (VMware cloud service providers), announcing that they will no longer renew partner contracts. At this point, less than 20 VCSPs currently remain in the U.S. Looking ahead, Broadcom has set October 2027 as the end of general support for the underlying vSphere 8 components of VCF 8. At that point, general product support, updates and security patches will cease — meaning organizations will need to transition to VMware Cloud Foundation VCF 9 or migrate to an alternative platform to avoid compliance violations and security risks. For technology advisors who have been selling VMware, the revenue stream is drying. VMware isn’t disappearing, but the models that partners have relied on for years — such as perpetual license sales, renewals and migrations — are coming to an end. “Once the October 2027 deadline hits, everything’s off the table,” explained Chad Muckenfuss, vice president of cloud for Telarus. “Partners have the next 12 months to pivot before the opportunity fundamentally changes.” VMWARE’S LAST HOORAH By Gerald Baldino As the transition to VCF 9 accelerates, VMware partners have a narrowing window to act 38 CHANNELVISION | WINTER 2026 EDGE TO CLOUD
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