Nine in ten VMware customers consider alternatives as licensing costs soar, survey finds

Broadcom pricing changes drive 60% of respondents toward multi-hypervisor strategies

By LineZotpaper
Published
Read Time3 min
A survey of 269 VMware user organizations has found that nine out of ten respondents are evaluating alternatives to the virtualization platform, with rising licensing costs cited as the primary factor driving the exodus. The study, conducted by Unisphere Research between December 2025 and February 2026 on behalf of third-party support provider Rimini Street, also revealed that 54 percent of respondents are reconsidering their VMware investments due to the end of perpetual license support.

The survey, which polled executives, managers and professionals at VMware customer organizations, shows cost remains the leading factor in virtualization roadmap decisions. Seventy-three percent of respondents identified savings as a top priority. The findings come more than three years after Broadcom completed its acquisition of VMware in 2022, a deal that has led to significant licensing changes and price increases.

In May 2025, cloud customer group the European Cloud Competition Observatory (ECCO) and cloud trade association CISPE claimed Broadcom had increased VMware licensing costs to between eight and 15 times their previous levels. Broadcom responded by stating it was working to advance the European Union's sovereign cloud objectives and enable enterprises to "accelerate innovation, provide more choice, and address their most complex technology challenges."

Despite these assurances, 48 percent of survey respondents said they do not currently plan to move any assets to VMware Cloud Foundation (VCF), Broadcom's subscription-based platform and preferred migration path. Sixty percent are instead considering a multi-hypervisor strategy.

Keith Costello, chief operating officer at Rimini Street, which sells third-party support for VMware, said the findings highlighted a need for practical, vendor-independent strategies. "These survey findings reinforce the need for practical, vendor-independent strategies that put business priorities back on the client's terms," Costello said.

Barriers to switching were also identified: operational complexity (40 percent), multi-vendor management challenges (38 percent), securing an increased attack surface (37 percent), and team skills requirements (37 percent).

The shift away from VMware has already begun. In June, UK retailer Tesco announced it was replacing VMware with an alternative product and pursuing a licensing lawsuit against Broadcom, with a High Court trial scheduled no earlier than November 2027. Gartner, which had argued as early as November 2024 that customers were worse off as a result of the acquisition, predicted last month that more than half of enterprises would begin proofs of concept for alternatives to their VMware deployments by 2029. It said: "By 2029, 55 percent of enterprises will initiate proofs of concept for alternative distributed hybrid infrastructure products to replace their VMware-based deployments and embrace hybrid cloud infrastructure delivery, up from 25 percent in 2026."

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Analysis

Why This Matters

  • VMware has been a dominant virtualization platform for two decades; a mass migration could reshape enterprise IT infrastructure markets.
  • Customers face difficult trade-offs between rising licensing costs and the operational complexity of switching platforms.
  • Broadcom's strategy for VMware post-acquisition is being tested, with potential implications for its broader acquisition model.

Background

Broadcom acquired VMware in late 2022 and rapidly shifted the company from perpetual licenses to subscription-based pricing (VMware Cloud Foundation). The move sparked widespread customer complaints about cost increases, with some reports suggesting price hikes of 8 to 15 times previous levels. VMware had long been the market leader in server virtualization, creating a large installed base that now faces significant disruption.

Key Perspectives

VMware customers: Facing steep licensing increases, they are actively evaluating alternatives such as multi-hypervisor environments and competing platforms. Many cite savings as their top priority and express frustration with the loss of perpetual license options. Broadcom: The company defends its changes as enabling innovation and more choice, pointing to VCF as a modern subscription platform. It has not publicly acknowledged the extent of customer dissatisfaction reported in the survey. Critics and industry analysts: Gartner has said customers are worse off since the acquisition. ECCO and CISPE have documented large price hikes. Tesco's pending lawsuit signals a willingness among large customers to fight Broadcom's terms. Third-party support providers like Rimini Street stand to benefit from customer unrest.

What to Watch

  • Gartner's prediction that 55% of enterprises will launch VMware alternative proofs of concept by 2029, up from 25% in 2026.
  • The outcome of Tesco's licensing lawsuit against Broadcom, with a High Court trial expected no earlier than November 2027.
  • Adoption rates of multi-hypervisor strategies among the 60% of surveyed organizations considering them.

Sources

Zotpaper

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