January 03, 2024

VMware by Broadcom Unveils Transformational Changes for Simplicity and Innovation

Understanding the Most Recent Announcements around Offerings and Pricing Models from VMware by Broadcom

Christine DavisDirector, Marketing
VMware, now under Broadcom, has marked a significant milestone with a series of announcements aimed at simplifying its product portfolio and transitioning to a subscription-based model. These changes, shaped by customer and partner feedback, are designed to provide enhanced value, continuous innovation, and a more straightforward engagement process for all stakeholders.
Simplification of Product Portfolio 
The cornerstone of VMware's announcement is the dramatic simplification of its product portfolio to two foundational offers (plus add ons). Responding to feedback about complexity, the company aims to streamline offerings across all divisions, making it easier for customers to navigate and extract maximum value from VMware solutions.
  • VMware Cloud Foundation Enterprise-Class Hybrid Cloud Solution for Large and Midsize Customers
  • The new VMware vSphere Foundation Secure and Resilient Workload Platform for Midsize and Small Data Centers
  • Additional offerings include: VMware vSphere Standard and VMware vSphere Essentials Plus, for small deployment needs.
Transition from Perpetual to Subscription Licenses
A major shift involves the complete transition from perpetual licenses to subscription licenses. The sale of perpetual licenses, Support and Subscription (SnS) renewals for perpetual offerings, and HPP/SPP (generic) credits will cease (effective dates will vary). This move aligns with industry trends, offering customers continuous innovation, faster time to value, and predictable investments.
  • Handling Perpetual Licenses Existing Customers with perpetual licenses can continue to use them without disruption. However, after the end of perpetual license availability, new purchases of perpetual licenses will not be possible. Instead, customers are encouraged to
    explore subscription software or term licenses for ongoing and future needs.      
  • Support for Active Service and Support (SnS) Contracts VMware by Broadcom commits to continuing support as defined in contractual commitments and the VMware Software Lifecycle Policy, ensuring a seamless experience for customers with active SnS contracts.
  • Renewals and Upgrades Customers seeking to renew their SnS contracts or upgrade from perpetual to subscription licenses are advised to connect with their partner business contact for detailed information and personalized assistance.
Preparing for Change
To help prepare for these changes, Stellar can assist in assessing your current state with VMware infrastructure and management products. This includes reviewing the inventory of perpetual licenses, understanding refresh cycles, and becoming familiar with available subscription offers. 
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