Broadcom’s close of the VMware acquisition has brought together two engineering-first, innovation-centric teams to help build the world’s top infrastructure technology company. In the past two years, VMware has been on a journey to simplify its portfolio and evolve from a perpetual to a subscription model to enhance its ability to serve customers with continuous innovation, faster time to value, and anticipated investments. Let’s have a quick overview of the latest announcement made by Krish Prasad, Senior Vice President and General Manager, VMware Cloud Foundation Division.
Together, we are well-positioned to empower global enterprises to embrace private, hybrid, and multi-cloud environments. And we are devoted to driving customer success through faster innovation, a modest portfolio, and a robust ecosystem.
Currently, VMware by Broadcom has reached a new milestone with the announcement of the following:
- A dramatic simplification of VMware product portfolio permits customers of all sizes to achieve more value for their investments in VMware solutions. The portfolio simplification through all VMware by Broadcom divisions curtails customer and partner feedback over the years telling VMware that their offers and go-to-market are too intricate.
- Complete the conversion of all VMware by Broadcom solutions to subscription licenses, with the end of sale of perpetual licenses, Support and Subscription (SnS) restorations for perpetual offerings, and hybrid purchase program/subscription purchase program (HPP/SPP) credits beginning today (effective dates will vary). Moreover, VMware is introducing a bring-your-own-subscription license option, providing license portability to VMware authorized hybrid cloud endpoints running VMware Cloud Foundation.
Portfolio Simplification
Now, VMware is announcing particular changes coming to the VMware Cloud Foundation division portfolio. Going forward, the division will feature two primary offers:
- VMware Cloud Foundation, VMware flagship enterprise-class hybrid cloud solution for customers to run their business acute and modern applications – in a secure, robust and cost efficient mode. To let more customers to benefit from this solution, VMware has reduced the earlier subscription list price by half and supplemented higher support service levels including improved support for activating the solution and lifecycle management.
- The new VMware vSphere Foundation delivers a more streamlined enterprise-grade workload platform for it’s mid-sized to smaller customers. This solution incorporates vSphere with it’s intelligent operations management to provide the best performance, accessibility, and proficiency with greater visibility and insights.
Both VMware Cloud Foundation and VMware vSphere Foundation can have optional innovative add-on offers. VMware’s storage offering, ransomware and disaster recovery service, and application platform services are accessible on both offers. And Application Network and Security offerings are available for VMware Cloud Foundation. Further advanced services and offerings, including Private AI, will be accessible soon.
Subscription Licenses
VMware has been on a journey of conversion to a subscription model for more than a year now, and the industry has already embraced subscription as the standard for cloud consumption. With a simplified portfolio in place, they’re finalizing our transition to subscription offerings. Offerings will exclusively be available as subscriptions or as term licenses following the end of sale of permanent licenses and Support and Subscription (SnS) renewals beginning today.
The subscription model helps them provide what customers want:
- Continuous innovation.
- Faster time to value.
- Probable investments.
Customers can continue using everlasting licenses with active support contracts. They will continue to provide support as defined in contractual pledges. VMware encourages customers to analyse their inventory of perpetual licenses, including Support Services renewal and expiration dates. Broadcom will work with customers to support them “trade in” their perpetual products in exchange for the new subscription products, with upgrade pricing incentives. (For further details, see FAQ).
The simplification of VMware portfolio and move to subscription and term offerings are a finale of it’s multi-year business transformation efforts. The steps, theye’re taking today will further enable customer and partner success by delivering the novelty, simplicity, and flexibility they need as they commence their digital transformations.
Also Read: VMware vSphere 8 Is Now GA (General Availability)
FAQ’s
Q: What is VMware by Broadcom announcing?
Currently, VMware by Broadcom has reached a new milestone in its journey and broadcasted the following:
- A dramatic simplification of VMware product portfolio allows customers of all extents to gain more value for their investments in VMware solutions. The portfolio simplification across all VMware by Broadcom divisions stems from customer and partner feedback over the years telling them their offers and go-to-market are too complex.
- Complete the transition of all VMware by Broadcom solutions to subscription licenses, with the end of the sale of everlasting licenses, Support and Subscription (SnS) revitalizations for perpetual offerings, and HPP/SPP (generic) credits beginning today. Furthermore, they are introducing a bring-your-own-subscription license option, providing license portability to VMware-validated hybrid cloud endpoints running VMware Cloud Foundation.
Q: How do these changes benefit customers?
Over the past two years, VMware has been on a journey to simplify its portfolio and evolution to a subscription model, the industry standard for cloud consumption, and to better serve customers with continuous innovation, faster time to value, and predictable investments. We’re also helping more customers benefit from VMware Cloud Foundation by decreasing the list price by half and including higher support service levels including enhanced support for activating the solution and lifecycle management.
Q: Why is this good for partners?
A: The industry has already broadly embraced subscription and SaaS, and many partners in VMware’s ecosystem have already developed success practices in this area. Subscription and SaaS models provide an opportunity for partners to engage more strategically with customers and deliver higher-value services that drive customer success. It also helps accelerate their transition to a business model focused on annual recurring revenue.
Q: What are the changes to perpetual licenses?
A: As part of their transition to subscription and a simplified portfolio, beginning today, they will no longer sell perpetual licenses. All offerings will continue to be available as subscriptions going forward. Additionally, VMware is ending the sale of Support and Subscription (SnS) renewals for perpetual offerings beginning today.
Q: Why make this change from perpetual licenses to subscription?
A: This modification is the natural next step in VMware multi-year strategy to make it simple for customers to consume both our existing offerings and new innovations. VMware trusts that a subscription model supports their customers with the innovation and flexibility they need as they undertake their digital transformations.
Q: Can customers continue to use their perpetual licenses?
A: Yes, customers can continue to use perpetual licenses that they’ve purchased for products.
Q: Can customers still purchase and add additional perpetual licenses after today?
A: After a customer’s effective date for the end of accessibility of perpetual licenses, customers will not be able to purchase new perpetual licenses. Customers will be able to purchase subscription software or term licenses to supplement or exchange their current perpetual-licensed install base.
Q: Can customers renew their Service and Support (SnS) contracts after today?
A: No, customers cannot renew their SnS contracts for perpetually licensed products after today. Broadcom will work with customers to help them “trade in” their perpetual products in exchange for the new subscription products, with upgrade pricing incentives. Customers can contact their VMware account or partner representative to learn more.
Q: Do customers have to collect and submit their perpetual licenses to Broadcom when they “trade-in” their products for subscription?
A: No, Broadcom does not require customers to submit their perpetual licenses to Broadcom when they “trade in” their products for subscriptions.
Q: Will VMware by Broadcom continue to provide support for active Service and Support (SnS) contracts?
A: VMware will continue to provide support as defined in contractual commitments.
Q: What will happen to customers’ existing perpetual licenses with active SnS contracts when they are up for renewal?
A: Customers should contact their VMware account or partner representative for upgrade pricing from perpetual to subscription.
Q: What can customers with perpetual licenses do now to prepare?
A: This is an excellent time for customers to evaluate their current state with VMware infrastructure and management products. We encourage customers to review their list of perpetual licenses, including refresh cycles and renewal dates, and become more accustomed with VMware’s available subscription offers. Customers should also contact their VMware or partner representative for more information.
Q: What VMware Cloud Foundation division offerings are available for purchase?
A: The product simplification across the VMware Cloud Foundation division stems from customer and partner feedback requesting VMware reduce the complexity of their offers and go-to-market. Moving forward, the VMware Cloud Foundation division will feature two primary offers: VMware Cloud Foundation, the new VMware vSphere Foundation and VMware Hybrid Cloud services and offers. Furthermore, VMware offer VMware vSphere Standard and VMware vSphere Essentials Plus for deployments with more limited requirements.
Q: What is VMware vSphere Foundation?
A: VMware vSphere Foundation is a new solution that chains VMware full-featured server virtualization platform, vSphere with intelligent operations management to deliver the best performance, accessibility, and efficiency with greater visibility and insights. For customers seeking an HCI solution, VMware offers VMware vSAN as an add-on to vSphere Foundation, which includes all the capabilities of vSAN including vSAN Max.
Q: What happens to customers that have purchased HPP/EPP credits and still have an outstanding balance of unredeemed credits?
A: They are honoring existing agreements and will work with their customers to help with the recovery of credits on new offerings.
Q: What products and bundles this new policy impacts?
A: Here is a list of products the new licensing policy impacts:
- VMware Cloud Foundation
- VMware vSphere
- VMware vSAN
- VMware NSX
- VMware HCX
- VMware Site Recovery Manager
- VMware vCloud Suite
- VMware Aria Suite
- VMware Aria Universal
- VMware Aria Automation
- VMware Aria Operations
- VMware Aria Operations for Logs
- VMware Aria Operations for Networks
