Following Broadcom’s acquisition of VMware, changes are imminent. Companies are developing strategies to adapt, ranging from alternatives to virtualization to increased use of containers. Short-term challenges may ultimately accelerate the trend toward containerization.
After Broadcom’s acquisition of VMware was approved on November 21, 2023, there were significant changes. Layoffs occurred, the product portfolio was streamlined, parts of VMware were sold, partner contracts were terminated, and prices were dramatically increased. At the same time, direct support for many cloud providers was discontinued.
Techmonitor.ai raises the question of whether this step was truly a mistake. Regardless of this debate, companies had to quickly develop adaptation strategies to cope with the impact of the acquisition.
Mitigation strategies for the challenges resulting from Broadcom’s acquisition of VMware:
It is understandable that the industry is dissatisfied and has developed strategies to mitigate the effects. These strategies include:
- Replacing VMware with other virtualization platforms such as Hyper-V, Proxmox, Nutanix, or OpenShift
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Moving from virtualization to containers
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Reducing licensed cores by consolidating VMs onto as few hosts as possible and shifting workloads to bare metal.
Borncity outlines the issues that arose after the acquisition regarding the ordering and licensing of VMware products, which presented additional challenges for many companies.
Broadcom, the chipmaker, completed the $69 billion deal to acquire VMware, bringing about profound changes in the market, as reported by BBC.
Overall, Broadcom – as with previous acquisitions – has caused considerable disruption and dissatisfaction. In the medium to long term, this will likely promote the trend toward containerization. In the short term, affected companies must reluctantly accept higher costs and the migration or reconfiguration efforts required for their VMware environments.