“Trust, not features, is the real deficit”: VMware tries to appease SMBs
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Broadcom's acquisition of VMware has alienated small and medium-sized businesses (SMBs) by ending perpetual licenses and pushing expensive bundles like VMware Cloud Foundation (VCF). VMware executives admit they focused too heavily on VCF and are now promising an updated version of vSphere Standard, which hasn't been updated since 2022. However, many former customers and partners say trust is broken, with some stating they have already moved to rival platforms like Nutanix, Proxmox, and Hyper-V. Industry observers argue that Broadcom needs to demonstrate sustained commitment through stable pricing and reliable renewals rather than just features. Broadcom's software business has remained highly profitable since the acquisition, but it remains unclear how important SMBs are to its overall strategy. A successful vSphere Standard update could still persuade some SMBs to stay with VMware rather than migrate.
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