The Cons of VMware Since the Broadcom Takeover
The acquisition of VMware by Broadcom was positioned as a strategic move to “streamline operations” and “focus on core enterprise customers.” In practice, however, the takeover has introduced a wide range of challenges that have negatively impacted customers of all sizes. For many long-time VMware users, the post-acquisition era has been defined by uncertainty, cost increases, and a noticeable decline in customer trust.
Below is a deep dive into the major cons of VMware since Broadcom took over.
1. Massive Licensing Cost Increases
One of the most immediate and painful changes has been dramatically higher licensing costs.
Broadcom eliminated perpetual licenses and pushed customers toward subscription-only models, often at significantly higher price points. Many organizations have reported:
- 2× to 5× cost increases at renewal
- Forced upgrades to larger bundles they don’t fully need
- Loss of flexibility in right-sizing environments
For small and mid-sized businesses, these price hikes are often unsustainable, forcing difficult decisions about downsizing, delaying projects, or abandoning VMware entirely.
2. Forced Bundling and Reduced Choice
Broadcom simplified VMware’s product portfolio by collapsing multiple SKUs into a few large bundles (e.g., VMware Cloud Foundation).
While this may sound simpler on paper, it often results in:
- Paying for features that will never be used
- Loss of modular purchasing options
- Reduced ability to tailor VMware deployments to specific workloads
Customers who previously relied on a lean ESXi + vCenter setup are now being pushed toward full-stack solutions whether they need them or not.
3. End of Perpetual Licensing = Loss of Control
The removal of perpetual licenses fundamentally changes the customer relationship.
Under the old model:
- Customers owned what they purchased
- Long-term cost predictability was possible
- Environments could be run for years without renewal pressure
Under the new subscription-only model:
- Failure to renew can jeopardize support and compliance
- Long-term budgeting becomes harder
- Customers feel locked in rather than invested
This shift disproportionately harms organizations with long infrastructure lifecycles or strict capital expenditure models.
4. Partner Ecosystem Damage
Broadcom significantly reduced VMware’s partner ecosystem, cutting ties with many:
- Resellers
- MSPs
- Training partners
- Smaller regional VARs
The result:
- Fewer trusted local partners
- Reduced competition
- Less personalized support and consulting
Many customers now struggle to even get accurate quotes or timely renewal assistance, something that was previously handled smoothly by partners who understood their environments.
5. Decline in Customer Support Experience
Support quality has become a common complaint.
Reported issues include:
- Longer response times
- Fewer knowledgeable support engineers
- Increased reliance on scripted responses
- Escalations that go nowhere
For mission-critical infrastructure, this erosion of support quality is not a minor inconvenience—it’s a serious operational risk.
6. Abrupt Product and Feature Deprioritization
Broadcom has made it clear that it is focused on large enterprise and top-tier customers, often at the expense of others.
Consequences include:
- Certain products receiving minimal updates
- Features being quietly deprecated
- Unclear product roadmaps
Customers outside the “strategic enterprise” category are left wondering how long their chosen VMware products will remain viable.
7. Uncertainty and Lack of Transparent Communication
Another major downside is the lack of clear, proactive communication.
Many customers learned about:
- Licensing changes
- Price increases
- Partner terminations
…through renewal quotes or third-party news rather than direct VMware communication.
This reactive approach has created:
- Anxiety during renewal cycles
- Difficulty planning multi-year infrastructure strategies
- A general erosion of trust
8. Accelerated Vendor Lock-In
The new VMware strategy strongly encourages deeper lock-in:
- Heavier reliance on VMware-specific tooling
- Bundled services that are hard to replace piecemeal
- Reduced portability of workloads
While VMware has always had some lock-in, Broadcom’s approach intensifies it, making future exits more complex and expensive.
9. Driving Customers Toward Alternatives
Ironically, Broadcom’s changes have sparked the largest migration wave away from VMware in its history.
Organizations are now seriously evaluating:
- Proxmox
- Hyper-V
- Nutanix
- OpenStack
- Cloud-native or hybrid alternatives
Even customers who have used VMware for 10–15 years are actively planning exit strategies—not because the technology is bad, but because the business model no longer aligns with their needs.
10. Cultural Shift Away from Customer-First Values
Perhaps the biggest loss is intangible: the cultural shift.
VMware was once seen as:
- Engineer-friendly
- Customer-focused
- Innovation-driven
Post-acquisition, many customers feel it has become:
- Revenue-maximizing first
- Less flexible
- Less empathetic to real-world IT constraints
This perception alone is enough to push organizations to reconsider long-term loyalty.
Final Thoughts
To be clear, VMware’s core technology remains strong. ESXi, vSphere, and related products are still technically excellent. However, technology alone is not enough.
Since the Broadcom takeover, VMware has become:
- More expensive
- Less flexible
- Harder to do business with
- Riskier for long-term planning
For many customers, the question is no longer “Should we renew VMware?” but “How long can we afford to stay?”
If Broadcom’s goal was to maximize short-term revenue from top-tier customers, it may succeed. But the cost has been widespread customer dissatisfaction and a fractured ecosystem—damage that will be hard to reverse. With that said, Broadcom’s management choices have been instrumental in reshaping VMware’s reputation—though perhaps not in the intended direction.
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