top of page

VMware's New Licensing Strategy: Market's Reaction and Our Top 5 Survival Tips!

In the world of IT, VMware's shift to a subscription-based licensing model is provoking discussions and concerns among IT professionals. While our primary focus is on providing quality refurbished hardware, understanding these changes and their implications for our clients' decisions is important to us. Here's a look at VMware's new licensing approach and its wave of reaction in our market.

VMware's Licensing Shift: A Brief Overview

In the past, VMware's licensing model was straightforward: buy a license, and it's yours forever. Now, the model has shifted to a subscription-based approach, where you pay annually. This shift aligns with the broader industry trend towards ongoing revenue models. However, for many VMware users, especially those working with tight budgets, this change poses new challenges and necessitates a thorough review.

User Concerns: How the IT World Reacted

The switch to a subscription model has been met with mixed reactions. We've heard a lot of stories recently; many users have expressed concerns about the potential increase in costs. Most of the IT leaders we talked to shared a scenario where the cost for their VMware setup escalated significantly under the new model, impacting their budget planning. A particular topic that came up recently at an IT conference was the complexity of the new licensing system. Users are finding the new pricing structure difficult to understand, many have expressed frustration due to the lack of transparency in VMware's communication. One of our good friends remarked, "We're just trying to understand what these changes mean financially; it feels like we're navigating a labyrinth." Another IT professional shared a detailed account of their experience with the new model. They had been using a mix of perpetual and subscription licenses for different clusters. However, under the new system, they found themselves forced to re-evaluate their entire setup. He said, "We are now looking at alternative solutions because the new model simply doesn't align with our usage and financial planning."

IT professionals didn't hold back on online forums either. A sysadmin for example working in a government agency expressed frustration over the shift. They were planning a budget for the upcoming year when the new pricing was announced, which threw their plans into disarray. The user stated, "We were blindsided by the pricing changes. It's not just the cost – it's the uncertainty and the scramble to adjust our plans that's really frustrating." Another user, part of a small IT team in a non-profit, shared their worries about the long-term viability of staying with VMware. He wrote, "Our non-profit relies heavily on VMware for our operations. The new subscription model, with its higher costs, might force us to downgrade our infrastructure or seek alternatives, which is a tough challenge." Many users feared that this shift could set a precedent for other software vendors, leading to an overall rise in IT costs. There was a sense of worry about the future of IT budgets, especially for smaller organizations with limited resources.

Several users also expressed concerns about customer support and service quality under the new model. They questioned whether the increased costs would translate into better support or just higher profits for VMware. A user pointed out, "We're paying more, but are we getting more? That's the question many of us are grappling with."

So, after all, the community's response to VMware's new licensing model reveals a landscape of uncertainty and concerns. While some users see potential benefits in a subscription-based model, such as more regular updates and potentially better support, there's a general feeling of worry over increased costs, complexity, and the potential need to seek alternatives. These discussions highlight the need for clearer communication from VMware and a more nuanced understanding of the diverse needs of their customer base.

For more real user stories and experiences visit the following reddit discussion: Reddit - Broadcom announces new license changes to VMWare.

Five Tips to Overcome the Struggle

Based on our research and discussions, there are five suggestions for those impacted by this issue:

  1. Research Alternatives and Cost Analysis: Look at other virtualization options like Hyper-V or Proxmox. Think about what they offer and how much they cost. Do a thorough comparison of the costs and benefits to see if switching from VMware to a different solution makes financial sense.

  2. Leverage Community Insights and Vendor Relationships: Use IT communities and forums to learn from others' experiences and get advice. Keep talking to your vendors to better understand and negotiate deals.

  3. Invest in Training and Long-Term Planning: Make sure your team gets training to keep up with new technologies. Create a long-term IT plan that can adjust to future tech changes.

  4. Risk Management and Internal Communication: Look at the risks of switching your virtualization platform, including things like how well it works with your current setup, the help you'll get, and how stable it is. Make sure to clearly and effectively talk to your team about these changes and what they might mean.

  5. Embrace Flexibility and Open Source Solutions: Promote flexibility and the ability to change within your team. Think about using open source virtualization tools. They can save money and be customized, but they might need more technical know-how to handle.

By focusing on these areas, you can more effectively manage the transition and adapt to new technological shifts, ensuring a more resilient and prepared IT infrastructure.

bottom of page