VMware customers are still trying to ditch its software, two years after Broadcom acquisition

• Report finds 86% of customers are still looking to reduce their VMware footprint
• 85% are worried about price hikes – concerns haven't tamed in two years
• Migration complexity, high costs and technical barriers are getting in the way

Two years after Broadcom acquired VMware, new data has revealed that customers are still trying to leave the platform, confirming initial 'mass exodus' concerns.

CloudBolt research has found that 86% of North American enterprises are actively looking to reduce their VMware footprint.

But the transition isn't without its challenges – nearly two in three (63%) have changed their strategy two or more times since Broadcom's November 2023 acquisition, suggesting the move might not be so simple.

VMware customers are still trying to leave Broadcom

In 2024, around three-quarters (73%) of VMware's customers expected costs to more than double, and that's a concern that's felt today with 85% still concerned about future price rises.

The reality is that, while prices haven't doubled for most customers, operating costs have still risen. Three-fifths (59%) have seen prices rise by more than 25%, with the median increase sitting between 25-49%. Some of the more extreme cases sit at a much higher 350-700%.

However, moving away from VMware is proving to be challenging, with only 4% of the survey's participants having fully migrated. This is while 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 making practical moves to build leverage and optionality – even if for some that includes the realization that a portion of their estate never moves off VMware," CloudBolt Chief Marketing Officer Mark Zembal wrote.

But the desire to leave is clear, with VMware strategies now being raised at broad level – indicative of the pricing changes' effects on Broadcom's customers.

Looking ahead, most (72%) of the migrating customers are moving to public cloud IaaS rather than alternative hypervisors, but they're being held back by migration complexity (25%), higher-than-expected alternative costs (23%) and technical barriers (21%). The outlook is largely positive, with nearly two-thirds (62%) seeing the migration as 'challenging but doable'.

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