Important update – VMware bought by Broadcom

What’s happened? VMware have been bought by Broadcom in a large multi-billion dollar deal. Broadcom have retired all legacy licensing models, end user and partner engagement in favour of subscription based licensing. Licensing costs have gone up a huge amount as a result. Continue reading below for details of how this will affect you and your business.


How does this affect you?

If you are running a VMware environment you can expect a cost increase regardless of which licensing model you are on, (exact costs to be confirmed by Broadcom in May).

If you run perpetual licenses (purchased the software upfront and renew support and maintenance), these are going end of life and you will need to switch to a subscription model to continue receiving support and updates.

Licensing has been simplified so there are less options, all subscription based and there is very little to distinguish between the SMB, Education, Government and Enterprise offerings.

If you run a Desktop as a Service (DaaS), SaaS, DRaaS or IaaS cloud based service on which the infrastructure is based on VMware (like Connect Systems Private Cloud and 11:11 DR), you can expect costs to increase in line with the cost increases enforced by VMware.

We are assessing what this means to our services that we provide and we will try and limit any cost increases where possible, but communication surrounding pricing from Broadcom/VMware has not been clear up to this point.

This has been a frustrating time for all across the industry and we are evaluating possible alternative solutions. We are seeing a huge uptake on services such as Microsoft Azure which are not affected by this acquisition, please speak to your Account Manager for more information on this.

Rest assured we will be in touch with further updates but in the meantime if you would like to discuss any of the above, please get in touch with us here.

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