{"id":41457,"date":"2023-12-13T16:33:04","date_gmt":"2023-12-13T21:33:04","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=41457"},"modified":"2024-03-17T14:17:28","modified_gmt":"2024-03-17T18:17:28","slug":"vmware-transition-to-subscriptions","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2023\/12\/13\/vmware-transition-to-subscriptions\/","title":{"rendered":"VMware Transition to Subscriptions"},"content":{"rendered":"<p><a href=\"https:\/\/news.vmware.com\/company\/vmware-by-broadcom-business-transformation\">VMware<\/a> (via <a href=\"https:\/\/news.ycombinator.com\/item?id=38615315\">Hacker News<\/a>):<\/p>\n<blockquote cite=\"https:\/\/news.vmware.com\/company\/vmware-by-broadcom-business-transformation\">\n<p>Broadcom&rsquo;s close of the VMware acquisition has brought together two engineering-first, innovation-centric teams to help build the world's leading infrastructure technology company.<\/p>\n<p>[&#8230;]<\/p>\n<p>VMware has been on a journey to simplify its portfolio and transition from a perpetual to a subscription model to better serve customers with continuous innovation, faster time to value, and predictable investments.<\/p>\n<p>[&#8230;]<\/p>\n<p>Complete the transition of all VMware by Broadcom solutions to subscription licenses, with the end of sale of perpetual licenses, Support and Subscription (SnS) renewals for perpetual offerings, and hybrid purchase program\/subscription purchase program (HPP\/SPP) credits beginning today (effective dates will vary).<\/p>\n<\/blockquote>\n<p>It says &ldquo;all&rdquo; solutions, but at least for now VMware Fusion is <a href=\"https:\/\/store-us.vmware.com\/fusion_buy_dual\">still available<\/a> as a perpetual license.<\/p>\n\n<p>Previously:<\/p>\n<ul>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2023\/09\/15\/limitations-on-macos-virtual-machines\/\">Limitations on macOS Virtual Machines<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2022\/08\/23\/apple-silicon-virtualization-apps\/\">Apple Silicon Virtualization Apps<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2020\/08\/28\/vmware-fusion-12\/\">VMware Fusion 12<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2017\/07\/20\/productivity-apps-and-subscription-pricing\/\">Productivity Apps and Subscription Pricing<\/a><\/li>\n<\/ul>\n\n<p id=\"vmware-transition-to-subscriptions-update-2023-12-19\">Update (2023-12-19): <a href=\"https:\/\/arstechnica.com\/information-technology\/2023\/12\/broadcom-ends-vmware-perpetual-license-sales-testing-customers-and-partners\/\">Scharon Harding<\/a>:<\/p>\n<blockquote cite=\"https:\/\/arstechnica.com\/information-technology\/2023\/12\/broadcom-ends-vmware-perpetual-license-sales-testing-customers-and-partners\/\"><p>Broadcom is looking to grow VMware&rsquo;s EBITDA (earnings before interest, taxes, depreciation, and amortization) from about $4.7 billion to about $8.5 billion in three years, largely through shifting the company&rsquo;s business model to subscriptions, Tom Krause, president of the Broadcom Software Group, said during a December 7 earnings call, per <a href=\"https:\/\/www.forbes.com\/sites\/stevemcdowell\/2023\/12\/10\/vmware-customers-cautious-after-recent-broadcom-actions\/?sh=455fc4eb76cf\">Forbes<\/a>.<\/p><p>[&#8230;]<\/p><p>Additionally, <a href=\"https:\/\/arstechnica.com\/information-technology\/2023\/12\/broadcom-cuts-at-least-2800-vmware-jobs-following-69-billion-acquisition\/#:~:text=Broadcom%20cuts%20at%20least%202%2C800,%2469%20billion%20acquisition%20%7C%20Ars%20Technica\">Broadcom&rsquo;s <\/a><a href=\"https:\/\/arstechnica.com\/information-technology\/2023\/12\/broadcom-cuts-at-least-2800-vmware-jobs-following-69-billion-acquisition\/#:~:text=Broadcom%20cuts%20at%20least%202%2C800,%2469%20billion%20acquisition%20%7C%20Ars%20Technica\">layoffs<\/a> of at least 2,837 VMware employees have brought uncertainty to the VMware brand. A <a href=\"https:\/\/www.crn.com\/news\/virtualization\/layoffs-engulf-vmware-after-broadcom-close-chaos-for-partners-in-sales-trenches\">CRN<\/a> report in late November pointed to VMware partners hearing customer concern about potential price raises and a lack of support. C.R. Howdyshell, CEO of Advizex, which reportedly made $30 million in VMware-tied revenue in 2022, told the publication that partners and customers were experiencing &ldquo;significant concern and chaos&rdquo; around VMware sales. Another channel partner noted to CRN the layoff of a close VMware sales contact.<\/p><\/blockquote>\n<p>Via <a href=\"https:\/\/taoofmac.com\/space\/links\/2023\/12\/14\/0933\">Rui Carmo<\/a>:<\/p>\n<blockquote cite=\"https:\/\/taoofmac.com\/space\/links\/2023\/12\/14\/0933\"><p>Ah, the typical Broadcom acquisition playbook: lay off staff, drive up revenue as much as possible, and then maybe, if things hold out, <em>not<\/em> kill off all the product lines. Kind of sad to see VMware being milked like this, but virtualization has become a commodity market.<\/p><p>This licensing and support cutoff move is going to seriously annoy a <em>lot<\/em> of people who have built their entire IT (and hosting) landscape atop VMware, and I&rsquo;m betting that many major customers (and partners) were caught completely by surprise and are now scrambling to figure out what to do.<\/p><\/blockquote>\n\n<p id=\"vmware-transition-to-subscriptions-update-2024-02-28\">Update (2024-02-28): <a href=\"https:\/\/taoofmac.com\/space\/links\/2024\/02\/26\/0951\">Rui Carmo<\/a>:<\/p>\n<blockquote cite=\"https:\/\/taoofmac.com\/space\/links\/2024\/02\/26\/0951\"><p>The amount of aggravation Broadcom has been causing VMware customers and parters is certain to become the stuff of legend in IT circles&#x2013;Since <a href=\"https:\/\/taoofmac.com\/space\/links\/2023\/12\/14\/0933\">getting wind of this<\/a> I have been <a href=\"https:\/\/taoofmac.com\/space\/site\/disclaimer\">personally<\/a> involved in at least three instances of major customers (one of them a sizable European hosting company) setting some hard dates for cutoff to another solution (either on premises or in the cloud), and smaller shops are already deploying <code>KVM<\/code> or Hyper-V in multiple shapes and forms.<\/p><\/blockquote>\n\n<p id=\"vmware-transition-to-subscriptions-update-2024-03-17\">Update (2024-03-17): <a href=\"https:\/\/arstechnica.com\/information-technology\/2024\/03\/broadcom-ceo-admits-vmware-changes-have-brought-unease-to-customers-partners\/\">Scharon Harding<\/a> (<a href=\"https:\/\/news.ycombinator.com\/item?id=39730327\">Hacker News<\/a>):<\/p>\n<blockquote cite=\"https:\/\/arstechnica.com\/information-technology\/2024\/03\/broadcom-ceo-admits-vmware-changes-have-brought-unease-to-customers-partners\/\"><p>Broadcom CEO and President Hock Tan has acknowledged the discomfort VMware customers and partners have experienced after the sweeping changes that Broadcom has instituted since it acquired the virtualization company 114 days ago.<\/p><p>In a <a href=\"https:\/\/www.broadcom.com\/blog\/vmware-by-broadcom-the-first-100-days\">blog post<\/a> Thursday, Tan noted that Broadcom spent 18 months evaluating and buying VMware. He said that while there&rsquo;s still a lot of work to do, the company has made &ldquo;substantial progress.&rdquo;<\/p><\/blockquote>","protected":false},"excerpt":{"rendered":"<p>VMware (via Hacker News): Broadcom&rsquo;s close of the VMware acquisition has brought together two engineering-first, innovation-centric teams to help build the world's leading infrastructure technology company. [&#8230;] VMware has been on a journey to simplify its portfolio and transition from a perpetual to a subscription model to better serve customers with continuous innovation, faster time [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2023-12-13T21:33:07Z","apple_news_api_id":"dabae1aa-af45-4cee-b373-1678aa2a0930","apple_news_api_modified_at":"2024-03-17T18:17:32Z","apple_news_api_revision":"AAAAAAAAAAAAAAAAAAAABg==","apple_news_api_share_url":"https:\/\/apple.news\/A2rrhqq9FTO6zcxZ4qioJMA","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":"\"\"","apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[2],"tags":[66,1421,101,1968,30,32,2385,29],"class_list":["post-41457","post","type-post","status-publish","format-standard","hentry","category-technology","tag-acquisition","tag-app-subscriptions","tag-business","tag-layoffs","tag-mac","tag-macapp","tag-macos-14-sonoma","tag-vmware"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/41457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/comments?post=41457"}],"version-history":[{"count":8,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/41457\/revisions"}],"predecessor-version":[{"id":42543,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/41457\/revisions\/42543"}],"wp:attachment":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/media?parent=41457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/categories?post=41457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/tags?post=41457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}