Broadcom is a leader in the tech industry and recently added VMware to its portfolio. While the acquisition initially only affected stockholders, this is changing. Broadcom has announced changes to the licensing and subscription services associated with VMware.
Broadcom VMware licensing changes can have significant implications for businesses and IT specialists globally. Therefore, successfully navigating these changes is a priority for businesses. Thankfully, navigating these changes doesn’t need to be difficult, especially if you take a measured approach to the process.
Perpetual Licenses Are Ending
A significant change that’s generating plenty of buzz is the end of perpetual VMware licenses, which affects how businesses and IT pros access and use VMware products. If you hold a perpetual VMware license, you probably have plenty of questions. Don’t worry; we’ll get to that in a bit.
So, you can no longer purchase perpetual licenses. Your options are now subscription-based. You do have some subscription options so you should be able to find a plan that fits your budget and business needs.
An example is the bring-your-own-subscription license. You can create bundles of products you need and leave the others behind. If you’re still leery of a subscription-based licensing model, it has a few advantages. You have access to new innovations and technical advancements so you’re always ready to meet changing business needs.
If you’re wondering if you can exchange a perpetual license for a subscription, the answer is no. You can’t exchange or mitigate your perpetual VMware license into Broadcom’s new subscription model.
Changes to Offered Products
Something that’s causing concern is the end of some VMware products’ availability. While discontinuing some product lines is a common practice when a business acquires another one, the list from Broadcom is extensive.
If you’re holding a perpetual license for one of the discontinued products, don’t delete it. The license will still access discontinued products but only for the duration of their current contract. Once the contract expires, so does the product access.
Something else to be aware of is support and updates for products no longer being carried by Broadcom. Even if your license is granting you access, these products will not receive any support or updates. In other words, if you run into an issue, you’re pretty much on your own.
So, what products is Broadcom no longer offering from VMware? Get ready for a relatively long list. Chances are, if you hold a VMware license you’ll find at least one product your business uses on the list.
- VMware Aria Suite
- VMware Aria Universal
- VMware Aria Automation
- VMware Aria Operations
- VMware Aria Operations for Logs
- VMware Aria Operations for Networks
- VMware Cloud Foundation
- VMware vCloud Suite
- VMware vSphere
- VMware vSAN
- VMware NSX
- VMware HCX
- VMware Site Recovery Manager
As we noted, the list of discontinued products is extensive and can impact your business.
How Broadcom Changes Can Impact Business Finances and Operations
The changes to the subscription and licensing models can impact a business’s finances and operations. Before you can start planning and budgeting for these changes, it helps to have a general idea of the potential impact on your business. If you’re an existing customer, you may be able to reduce subscription and licensing costs by trading in your perpetual licenses.
We mentioned earlier you can’t trade an existing perpetual license for a subscription, and this is still true. However, you can exchange a perpetual license for a one-time discount on a subscription. The goal of this program is for Broadcom to retain customers during the transition period.
Businesses never want to experience a disruption in operations and Broadcom is taking steps to help ensure everything continues working smoothly. To achieve this goal, if you have a perpetual license you can stop worrying about interruptions. You still have access to the same products, including ones being discontinued. The only catch is you won’t be able to receive support.
Once your contract expires, you will need to switch to a subscription license but at least you have time to plan for this step.
What Do These Changes Mean For Your Business
You should already have a pretty good idea of how these changes are going to impact your business. Some organizations may not even notice the changes taking effect while others will need to do some planning.
A common question is knowing when to give up your perpetual license and transition to a subscription. A good indication is that it’s time to make the change if you lack access to a VMware product. To gain access, you’re going to need a subscription-based license, and this also applies if the products you’re using need an update or you run into an issue requiring support.
Some good news about these changes is Broadcom isn’t leaving its customers wondering what steps to take. All perpetual license holders should expect to be contacted by a VMware account rep. The rep can answer any questions and initiate conversations about switching to a subscription. The rep can even help identify which VMware solutions are best suited to meet your business needs.
Don’t be surprised if an account rep reaches out when your VMware contract is getting ready to expire. Even though Broadcom is making some significant changes to the platform, they still want to keep existing customers informed and engaged. Broadcom also has a lofty revenue
Within three years, Broadcom is aiming to grow company revenue by 100%. The majority of the forecasted revenue is slated to come with the switch to subscription-based licensing.
Changes to VMware Licensing Are Navigable
Change can be frightening, especially when it affects your business. However, the changes Broadcom is implementing with VMware licensing may not be as significant as you think. You will be paying a subscription fee instead of a one-time cost, and this can affect your operating budget.
However, this may have a silver lining. With a subscription, you have access to continual updates and support. For businesses, this can be priceless.
