Broadcom claims that customers are not utilizing the bundle components effectively.
Many VMware users complain that the subscription bundles require them to pay for software they neither need nor want to use. The transition from perpetual licenses to subscription bundles is causing resistance in the market. Smaller and medium-sized organizations report that their costs have increased 8 to 15 times since the acquisition.
Broadcom points out benefits to customers
The criticism of the cost explosion is not accurate when you sit down with customers and discuss their situation, Broadcom EMEA CTO Joe Baguley told The Register. “Initially people might go ‘all the prices have gone up,’ but those 87 percent of people that have renewed with us have renewed because they’ve chosen VCF as their strategy going forward.”
Many customers who are now switching to VCF previously only used parts of the bundle, Baguley notes. For example, they only had vSphere and a few automation tools. By switching to VCF, they are discovering possibilities they previously did not have. He cites configuration management, security management, and cost management as examples.
The feedback Baguley receives from customers is consistent: “This is really cool. I didn’t know I could do that.”
VMware, now owned by Broadcom, has moved away from the traditional licensing model. Customers can no longer purchase individual products with perpetual licenses. Instead, the company offers subscription bundles such as VMware Cloud Foundation (VCF), version 9 of which was released this week.
Tip: License costs 8 to 15 times higher since VMware came under Broadcom