VMware After Acquisition by Broadcom: What Changed

VMware was recently acquired by Broadcom on November 22, 2023. Here are the challenges the acquisition brought to customers.

Long-Term Subscriptions Have Become More Expensive

  • 1.5 times higher for 3 year subscriptions
  • 2 times higher for 5 year subscriptions

Long-term subscriptions have become more expensive

Weakened Regional Office Operations

Changes at regional offices bring uncertainties in terms of support quality and continuous and localized innovations.

Weakened Regional Office Operations

Customers Are Forced to Either Downgrade or Upgrade

vSphere Enterprise Plus customers are forced to either downgrade to the Standard edition with fewer features or upgrade to vSphere Foundation with potential surplus features.

Changes for vSphere Enterprise Plus Customers

Customers Can No Longer Purchase Some Standalone Products

vSphere Foundation customers can no longer purchase 24x7 support, Aria Suite Enterprise, NSX Networking, or access to SRE as standalone products without upgrading to the new VMware Cloud Foundation bundle.

Customers Can No Longer Purchase Some Standalone Products

Broadcom’s VMware Acquisition: Changes and Challenges

vSphere Essential Plus/Standard editions ≤ 6.7 on a perpetual license arrow icon Forced to switch to a subscription, leading to higher costs in the long run
vSphere Enterprise Plus editions ≤ 6.7 on a perpetual license arrow icon Forced to switch to vSphere Foundations, leading to surplus features and higher costs
vSphere has expired or will be expiring in 2024 arrow icon Unable to renew, forced to buy a subscription
Currently using vSAN version < 6.7 or vSAN has expired or is expiring soon in 2024 arrow icon Switched to a per core and capacity-based subscription
Considering purchasing SAN storage (IP SAN, FC SAN) arrow icon High cost of maintaining external storage
Planning to expand the existing VMware Cluster arrow icon Need to buy a subscription for the entire cluster, not just the expansion
Planning to implement disaster recovery using VMware arrow icon Need to buy a whole set of VMware long-term subscription licenses

The semiconductor and infrastructure software giant, Broadcom recently acquired VMware for a staggering deal of $61 billion on November 22, 2023. The acquisition was followed by dire changes to VMware licenses, its business groups and regional offices, most of them negatively impacting customers and partners. The biggest consequence of the acquisition was the change of the VMware perpetual license to the VMware subscription license. According to our analysis, this switch in VMware licensing model burdens customers with VMware license cost, colloquially known as vTax.

Along with the rise in VMware license costs, customers and partners must bear reduced support due to the closure of multiple offices, especially in Asia-Pacific. The reduction in manpower, especially in the Asia-Pacific, can result in slow innovation, delayed responses, and less localized support. Broadcom plans to divest a few of VMware’s non-core assets while making additional changes such as add-on features, bundling, and minimum purchase capacity to VMware Cloud and vSphere Foundation.

The Broadcom VMware licensing change, potential layoffs and office closures, simplified offerings are forcing customers to reconsider and switch to other vendors in the market. The recent news of Dell’s contract termination with VMware, KKR firm’s acquisition of VMware’s End User Computing business further attests to the turbulence brought by the acquisition.

VMware Alternative: Sangfor Hyperconverged Infrastructure

Sangfor Hyper-Converged Infrastructure (HCI) is your best VMware alternative. Sangfor HCI provides innovative 3rd-gen cloud computing architecture that reduces at least 70% of the TCO, simplifies operations, and multiplies network security. It converges compute, storage, networking and security on a single software stack.

  • 1-stop software-defined data centre solution 
  • Easy operation and quick installation for business-critical applications 
  • Integrates with any commodity servers commercially available in the market
  • Build your own private cloud, extend to a public cloud or create your own Hybrid Cloud
VMware Alternative: Sangfor Hyperconverged Infrastructure

Sangfor vs VMware: Advantages of Using Sangfor

Flexible choice between perpetual or subscription license

Flexible choice between perpetual or subscription license.

Equivalent and cost-effective alternatives to VMware offerings.

Equivalent and cost-effective alternatives to VMware offerings.

Robust local office presence with no support concerns.

Robust local office presence with no support concerns.

Evolve from server virtualization-only to hyperconverged systems.

Evolve from server virtualization-only to hyperconverged systems.

Why Sangfor is The Best Alternative to VMware

Sangfor HCI is the fundamental building block of cloud, virtualized computing, storage, networking, and even security, offering equivalent features to VMware and more!

Proven methodologies to migrate diverse workloads from VMware to Sangfor with a few simple clicks.

Top 2 APAC Vendor for Hyperconverged Infrastructure Systems in Gartner® Market Share (2Q+3Q, 2023) Recognized in the Gartner ® Magic Quadrant for Hyperconverged Infrastructure Software High Rating on Gartner® Peer Insights for HCI

Sangfor HCI is available on both perpetual and subscription licenses to suit customer requirements.

Sangfor offers the best support across the entire sales cycle, covering sales, presales, and aftersales, together with operators available 24/7 for our customers and partners. We challenge ourselves daily to lead the change we envision for IT.

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Product Architecture Comparision (Sangfor vs VMware)

Product Architecture (Sangfor vs VMware)

From VMware to Sangfor HCI: Migrate Your Mission-Critical Workloads


seamlessly migrate your mission critical workloads from VMware to Sangfor HCI

Unique Features of Sangfor HCI

More cost-effiective solutions

More cost-effiective solutions

Continue to enjoy a perpetual license with Sangfor HCI

Continue to enjoy a perpetual license with Sangfor HCI

Free Cloud Lightweight Consultancy (For easy migration and going to the cloud)

Free Cloud Lightweight Consultancy (For easy migration and going to the cloud)

Easily migrate from VMware to Sangfor

Easily migrate from VMware to Sangfor

Local vendor office and local support

Local vendor office and local support

24/7 Online Support

24/7 Online Support

Time for VMware Replacement: Top VMware Competitors

Sangfor Technologies

Sangfor Technologies is a leading global vendor of IT infrastructure solutions, specializing in Cloud Computing & Network Security with a wide range of products & services including Hyper-Converged Infrastructure (HCI), which is the most preferred VMware alternative in the market.

Nutanix, Inc.

Nutanix tops the list of VMware competitors, specializing in hyper-converged infrastructure (HCI), cloud computing, and software-defined storage. Its solutions are perceived as cost-effective when compared to VMware, making it a strong VMware replacement.

Dell Technologies Inc.

Another VMware alternative includes Dell, which offers computers, servers, storage devices, networking equipment, and IT services. Its attractive product lineup includes EMC PowerFlex (SDS), EMC VxRail (HCI), and EMC PowerEdge Servers.

Hewlett Packard Enterprises (HPE)

As one of the potential VMware competitors, HPE offers hyper converged infrastructure (HCI) solutions, such as HPE SimpliVity and HPE Nimble Storage dHCI. Users can consider migrating to HPE owing to their comprehensive portfolio and expertise.

StarWind Software, Inc.

With its reputation for virtualization solutions, StarWind joins the growing list of VMware alternatives. Its solutions Hyper Converged Appliance (HCA), V2V Converter and XCP-ng have the potential to replace relevant VMware offerings.

Cisco Systems, Inc.

Cisco is a notable fierce VMware competitor and its network virtualization solution, Cisco ACI, excels in virtualized environments. In addition, its solutions HyperFlex HCI solution, Unified Computing System (UCS), can be considered as an alternative to VMware.

Canonical Ltd. (Open Source)

Canonical Ltd., a UK-based privately held computer software company offers open-source Ubuntu, which is considered as another good alternative for VMware. Ubuntu-based infrastructure supports migration processes and tooling and is dependent on the kind of workloads being run and the desired platform to which the data is to be migrated.

OpenNebula Systems (Open Source)

OpenNebula is a cloud and edge computing platform that provides unified management of IT infrastructure and applications, making it an open-source VMware competitor. Users can migrate from VMware to OpenNebula’s cost effective virtualization platform.

Proxmox Server Solutions GmbH (Open Source)

Another open-source VMware alternative is Proxmox offers easy-to-use software solutions that simplify server management, including its HCI software, Proxmox Virtual Environment.

We are here to help you eliminate your vTax and gain more value for your business with Sangfor HCI.