VMWare customers are still worried for the future following Broadcom takeover

Broadcom continues to retain VMware customers despite widespread concern over price hikes and troubling terms.

Jun 10, 2024 - 16:30

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VMWare customers are still worried for the future following Broadcom takeover

In the wake of Broadcom’s acquisition of VMware, a new report from CloudBolt Software has revealed the real reactions from the firm’s customers.

Despite anticipated price hikes and troubling terms and service revisions, the majority of VMware users are considering either partly or fully staying with Broadcom, the report found.

The analysis is based on the responses from 300 enterprise IT decision-makers across various industries to explore the impact of the acquisition on their IT strategies.

VMware customers are actually staying with Broadcom

“There has been so much speculation in the market in recent months in the wake of Broadcom’s acquisition regarding how VMware customers are reacting and what they are planning on doing in response – and how soon," noted CloudBold Chief Marketing Officer Mark Zembal.

Zembal added that the study was designed to separate truth from fiction by revealing insights about how VMware customers are actually reacting to the Broadcom takeover.

Despite that fact that customers are tending to stay with VMware under its new leadership, the report highlights widespread apprehension, with 99% expressing concern. An overwhelming majority (95%) also perceive the acquisition as disruptive to their IT strategy, with three in four foreseeing a price rise of more than 100%.

With the changes in mind, four in five will continue to stay with VMware fully (40%) or partially (43%), with others preparing to move workloads to the public cloud or alternative hypervisors.

Kyle Campos, Chief Technology Officer at CloudBolt, added: “Many companies are going to plug their noses and resign with Broadcom – at least for the near-term to buy more time to prepare for alternatives.”

Moreover, the widespread concern hasn’t gone unnoticed. Broadcom’s execs have made multiple comments in a bid to reassure customers, however it’s clear that the challenge for both Broadcom and its customers continues.