- Report Reveals 86% of Customers Still Looking to Reduce Their VMware Footprint
- 85% are worried about rising prices; concerns have not diminished in two years
- Migration complexity, high costs and technical barriers stand in the way
Two years after Broadcom acquired VMware, new data has revealed that customers are still trying to abandon the platform, confirming initial concerns about a “mass exodus.”
CloudBolt research has found that 86% of North American companies are actively looking to reduce their VMware footprint.
But the transition is not without its challenges: Nearly two in three (63%) have changed their strategy two or more times since Broadcom’s acquisition in November 2023, suggesting the move may not be so simple.
In 2024, around three-quarters (73%) of VMware customers expected costs to double, and that’s a concern being felt today, with 85% still worried about future price increases.
The reality is that while prices have not doubled for most customers, operating costs have still increased. Three-fifths (59%) have seen prices increase by more than 25%, with an average increase of between 25 and 49%. Some of the most extreme cases are at a much higher percentage, between 350 and 700%.
However, moving away from VMware is proving challenging: only 4% of survey participants have fully migrated. This comes as 41% look to stay with VMware as they instead focus on optimizing their footprint.
“The fear has cooled, but the pressure hasn’t, and most teams are now taking practical steps to build leverage and optionality, even if for some that includes realizing that a portion of their wealth never leaves VMware,” wrote CloudBolt CMO Mark Zembal.
But the desire to leave is clear, and VMware’s strategies are now being considered on a broad level, indicating the effects of the price changes on Broadcom customers.
Looking ahead, the majority (72%) of migrating customers are moving to public cloud IaaS instead of alternative hypervisors, but are held back by migration complexity (25%), higher-than-expected alternative costs (23%), and technical barriers (21%). The outlook is largely positive, with almost two-thirds (62%) seeing migration as “difficult but feasible”.
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