VMware customers face rising costs amid market changes

A recent report by Rimini Street highlights VMware customers' strong inclination towards maximising the value of their perpetual licences amidst evolving market conditions.

The report, titled "Insights and Strategies on VMware: Navigating the Evolving Hypervisor Market," delves into the challenges faced by VMware customers following Broadcom's acquisition of the hypervisor provider. Based on a survey conducted in the third quarter of 2024 involving over 110 VMware customers, the findings reveal proactive measures being considered by organisations to regain control over their VMware strategies while ensuring cost efficiency and stability.

The data indicates that 79% of respondents are satisfied with their current VMware software, which aligns with their business needs. However, these customers are facing significant price increases due to a shift from perpetual licenses to a subscription model, alongside changes in product bundling strategies. This situation is prompting many customers to consider alternative hypervisor solutions.

The interest in maintaining the existing framework is evident, with 99% of respondents willing to continue using their perpetually licensed software if they could obtain support. This trend underscores the importance of third-party support as a viable option for organisations striving to preserve their current software environments.

Rodney Kenyon, Group Vice President of Rimini Custom, stated, "Giving up control over perpetual licenses due to forced vendor subscription models is like turning in keys to your paid-off home to rent the same house from a landlord. The results of this survey highlight that while VMware customers are happy with their software, they are concerned with price increases and changes in licensing, and are seeking alternative strategies."

Kenyon added, "With our award-winning, industry-leading support, Rimini Street has helped thousands of organisations around the world extend the life and value of their current enterprise software releases, including VMware. For organisations that prefer to maintain their existing VMware environment rather than pursue an alternative solution, third-party support offers a powerful option. We provide clients with comprehensive support and optimization for their current software while also helping them define and execute strategic roadmap plans."

The report further identifies AI and cloud-native technologies as major influences in the hypervisor market transformation, as reported by 71% and 70% of respondents respectively. The evolving landscape, driven by technological advancements, presents both opportunities and challenges for organisations navigating this market transition.

Amid these market dynamics, Rimini Street offers expert guidance and roadmap services aimed at assisting VMware customers in evaluating their current strategies while optimising costs and reducing complexity. The company positions itself as a proactive provider helping clients navigate through ongoing changes with tailored support and innovation solutions.