If you’re trying to understand what’s happening with VMware and whether you need to act, you’re not alone. Broadcom‘s acquisition has triggered what analysts are calling an “exodus”—a mass migration event affecting thousands of organisations worldwide.
This guide brings together everything you need to make an informed decision about your virtualisation infrastructure. You’ll find clear answers to questions, expert analysis of your options, and navigation to detailed resources on pricing, alternatives, migration planning, costs, and security.
Whether you’re evaluating alternatives, planning a migration, or simply trying to understand the business impact, this hub provides the decision-support framework you need.
What is the VMware exodus and why is it happening?
The VMware exodus refers to a widespread migration away from VMware virtualisation platforms following Broadcom’s November 2023 acquisition. Broadcom immediately eliminated perpetual licensing, imposed 72-core purchase minimums, and implemented price increases ranging from 150% to over 1000% depending on deployment size and previous licensing agreements. These changes fundamentally altered VMware’s value proposition, triggering what Gartner predicts will be a 35% workload migration by 2028.
What actually changed
When Broadcom completed its $61 billion VMware acquisition in November 2023, over 300,000 VMware customers suddenly found themselves in an uncertain position. The acquisition wasn’t just a change in ownership—it marked a complete shift in business strategy.
Broadcom’s approach prioritised immediate revenue extraction over customer retention. Within weeks, the company shifted VMware from perpetual licenses to subscription-only models, eliminated cheaper licensing options, and introduced mandatory 72-core minimums that forced many organisations to purchase far more licensing than their infrastructure needed.
The impact was immediate. AT&T faced price increase proposals reaching 1,050% in one documented case. A mid-sized European financial services provider saw annual costs jump from approximately €180,000 to €400,000. The European Cloud Competition Observatory documented increases ranging from 800% to 1,500% in some cases, issuing a RED rating in May 2025.
The ecosystem disruption
The changes extended beyond pricing. Broadcom overhauled VMware’s partner ecosystem, reducing it from over 4,500 partners to approximately 300 Premier partners by March 2024. Many regional and specialised partners lost transacting rights entirely. Major distributors like Ingram Micro exited the VMware ecosystem completely.
This partner exodus created practical complications for organisations accustomed to working with local VMware experts. Suddenly, procurement channels that had worked for years were unavailable, and many organisations found themselves forced to deal directly with Broadcom—often with less favourable terms and minimal negotiating leverage.
The customer response
According to Gartner’s Peer Community, 74% of IT leaders are currently exploring VMware alternatives. A Foundry and CIO.com survey of over 550 IT leaders found that 56% plan to decrease their VMware usage over the next year, with 71% actively evaluating on-premises alternatives.
These aren’t edge cases or overreactions. The statistics represent a fundamental reassessment of VMware’s value proposition following Broadcom’s changes.
Want to understand the full scope of what changed and how it affects your licensing costs? Our deep dive into Broadcom VMware pricing changes examines the licensing crisis in detail, including negotiation strategies and real-world cost impact examples.
What does Gartner predict for VMware migration by 2028?
Gartner forecasts that 35% of current VMware workloads will migrate to alternative platforms by 2028. This prediction validates the scale of the migration wave and signals that staying with VMware positions you with a shrinking majority rather than an overwhelming consensus. The prediction specifically addresses enterprise workloads, suggesting Gartner views the migration as technically feasible for a significant portion of use cases, not just edge scenarios.
What the 35% figure actually means
Gartner’s forecast represents organisations that will complete migrations, not just those evaluating alternatives. That’s an important distinction. It’s easy to express interest in exploring options. Completing a multi-year migration project that involves moving hundreds or thousands of virtual machines requires genuine business justification and organisational commitment.
The prediction signals that Gartner believes the alternatives have matured to the point where a significant portion of VMware workloads can successfully transition. For organisations on the fence about whether migration is technically viable, this provides important validation from one of the industry’s most conservative research firms.
Timeline implications
Gartner’s 2028 endpoint suggests migrations will occur over a four-to-five-year window, not as a sudden exodus. This makes sense when you consider the complexity involved. Small environments with fewer than 100 VMs might complete migrations in 3-6 months, but enterprise environments with thousands of VMs typically require 18-48 months.
This timeline has practical implications for organisations still in evaluation mode. Waiting too long may result in resource constraints as migration consulting capacity fills and platform vendors struggle to keep up with demand. Early movers have more service provider options and can negotiate terms with alternative platform vendors.
What about the other 65%?
The prediction also suggests that 65% of VMware workloads will remain on the platform through 2028. Some organisations will accept higher costs to avoid migration complexity. Others have deep dependencies on VMware-specific features like NSX networking or vSAN storage that make migration prohibitively complex.
And some organisations simply won’t have completed their migrations by 2028—they’ll be mid-stream in multi-year projects that extend beyond Gartner’s forecast window.
The key takeaway is that Gartner’s prediction validates migration as a mainstream business decision, not a fringe reaction. But it shouldn’t be the sole factor in your decision. Your specific economics, technical requirements, and risk tolerance matter far more than industry percentages.
For comprehensive guidance on planning your migration and setting realistic timelines, see our detailed migration planning guide.
Should my company stay with VMware or migrate to an alternative?
This decision depends on three primary factors: your current VMware licensing costs versus renewal pricing, the technical complexity of your virtualisation environment, and your organisation’s risk tolerance for migration projects. Companies seeing 5x+ price increases with relatively standard virtualisation needs often find migration financially justified. Those with deep VMware feature dependencies (particularly NSX networking) or extremely low risk tolerance may accept higher costs to avoid migration complexity.
The economics of staying versus leaving
Start with the break-even calculation. Migration costs include alternative platform licensing (if commercial), migration tools and consulting, staff retraining, productivity losses during the learning curve, and potential hardware upgrades. Total this up—it might range from $50,000 to $500,000+ depending on your infrastructure size and complexity.
Now calculate the cumulative cost difference between staying with VMware and moving to an alternative over your planning horizon (typically 3-5 years). If your VMware renewal costs have jumped from $180,000 to $400,000 annually, that’s a $220,000 annual difference. Over three years, that’s $660,000 in additional VMware costs—significantly more than most migration projects cost.
However, organisations will run dual platforms during the transition, paying both Broadcom and the new platform vendor for the migration period. Factor this into your break-even analysis.
For a detailed framework to calculate your total cost of ownership and understand the hidden costs most organisations miss, read our comprehensive TCO analysis guide.
Technical complexity assessment
VMware deployments vary significantly in complexity. Keith Townsend from The CTO Advisor describes two types of VMware customers:
Type 1 customers treat the hypervisor as relatively interchangeable. Their disaster recovery processes don’t depend on VMware-specific orchestration. They use infrastructure-agnostic automation tools like Terraform and Ansible. Their networking isn’t built on NSX, and their storage management lives outside vSAN.
For Type 1 customers, migration is genuinely feasible. It’s still a project with risks and costs, but the technical challenges are manageable.
Type 2 customers have deeply integrated operations with VMware’s Software Defined Data Centre. They rely on vSphere DRS for resource optimisation, NSX for networking, vSAN for storage, vCenter orchestration for automation, Site Recovery Manager for disaster recovery, and vRealize integrations for management.
For Type 2 customers, the decision encompasses both hypervisor licensing and operating model transformation, as Townsend notes. Migration doesn’t just mean replacing the hypervisor—it means reimagining how your infrastructure operates.
Organisational readiness
Even if migration makes financial and technical sense, it requires organisational capacity. Do you have staff available for a 12-24 month migration project? If not, would hiring consultants erode your cost savings?
Can your business tolerate the risk of potential disruptions during migration? Phased migration approaches reduce this risk, but they extend timelines and require careful coordination.
And perhaps most importantly: what’s your timeline pressure? Organisations with immediate renewal deadlines face compressed evaluation windows and weaker negotiating positions with Broadcom. Those with longer runways can properly evaluate alternatives while maintaining negotiating leverage.
The “do nothing” option
One option is accepting Broadcom’s new pricing and staying with VMware. Broadcom has shown willingness to impose steep increases, but they’ve also shown willingness to negotiate with large customers who can credibly threaten to leave.
The risks of staying include continued price increases in future renewal cycles, increasing switching costs as you remain on the platform while alternatives mature, and potential ecosystem erosion as partners and third-party vendors reduce their VMware integration investments.
But staying also has benefits: no migration risk, no staff retraining, no productivity losses, and no need to rebuild operational processes around a new platform.
Understanding the economic implications is crucial to making this decision. Our total cost of ownership analysis provides a detailed framework for calculating the true cost of staying versus leaving.
What are the main alternatives to VMware vSphere?
The primary alternatives fall into three categories: open-source hypervisors (Proxmox VE, XCP-ng), commercial alternatives (Nutanix AHV, Microsoft Hyper-V), and cloud migration (AWS, Azure, GCP). Proxmox has emerged as the leading open-source choice for enterprises, offering KVM-based virtualisation with optional commercial support. Nutanix provides the closest feature parity to VMware with enterprise-grade support, while Hyper-V suits Windows-centric environments, and cloud migration represents a fundamental infrastructure shift rather than a like-for-like replacement.
Open-source alternatives
Proxmox VE has gained tremendous ground across many verticals since the Broadcom acquisition. What started as a home lab favourite has matured into an enterprise-capable platform. This enterprise capability stems from its inclusion of features like live migration, high availability, backup scheduling, and built-in clustering—all without separate licensing costs. Proxmox combines KVM virtual machines and LXC containers in a web interface, built on Debian Linux.
The base platform is free, with optional support subscriptions running a few hundred dollars per socket annually. One enterprise cited avoiding a $2.3 million VMware licensing quote by switching to Proxmox.
Enterprise users report that Proxmox “just works” whether in 3-node clusters or sprawling 17-host, multi-site deployments with 400+ VMs. Commercial support is available through Proxmox’s enterprise subscription, which includes access to the stable repository, technical support, and SLA guarantees.
XCP-ng is built on XenServer and offers arguably one of the most VMware-like experiences. The Xen Orchestrator appliance functions similarly to vCenter, providing a familiar management paradigm for VMware administrators making the transition.
XCP-ng is free with optional enterprise support available from Vates, the company behind XCP-ng. Like Proxmox, this reduces licensing costs compared to VMware while maintaining enterprise-level support options.
Commercial alternatives
Nutanix AHV is a Type-1 hypervisor built into Nutanix’s hyper-converged infrastructure platform. It’s managed via the Prism UI and provides close feature parity with VMware’s enterprise capabilities.
Nutanix AHV is included with Nutanix HCI subscriptions—there are no separate hypervisor fees. The platform supports multiple hypervisors including VMware ESXi, Microsoft Hyper-V, and Nutanix AHV, giving organisations flexibility during migration planning.
Nutanix has seen exponential growth since the Broadcom acquisition, positioning itself as the enterprise alternative for organisations that want commercial-grade support and the familiar HCI model.
Microsoft Hyper-V is included with Windows Server licenses. Standard edition provides rights for 2 VMs per host, while Datacenter edition offers unlimited VM rights. For Windows-centric environments, Hyper-V provides a logical enterprise alternative with strong hybrid cloud integration with Azure for cloud bursting, backup, and disaster recovery.
The learning curve is minimal for administrators familiar with Windows Server, and licensing is straightforward.
Cloud-native paths
Many organisations are using the VMware disruption as an opportunity to embrace cloud-native architectures entirely. AWS EC2, Azure Virtual Machines, and Google Compute Engine provide alternatives to on-premises virtualisation, though the economic models differ.
Cloud migration changes the decision from hypervisor selection to infrastructure model—IaaS versus on-premises. This represents a fundamental shift in how organisations provision resources, manage capacity, and handle operational overhead. Instead of purchasing and maintaining physical servers, teams work with virtual infrastructure that scales on demand but requires different cost management and architectural approaches.
Some organisations are exploring containerisation as part of their migration strategy. KubeVirt has seen “a multiple fold increase in adoption and usage over the last year” according to Red Hat, as organisations leverage Kubernetes for VM workloads.
Which alternative is right for you?
Most organisations find that 70-90% of their workloads are compatible with multiple alternatives. The decision often hinges on operational preferences and total cost rather than technical capability gaps.
For a detailed feature-by-feature comparison of these alternatives including enterprise readiness assessments and use case recommendations, read our comprehensive platform comparison guide.
And if you’re considering cloud migration as an alternative to on-premises hypervisor replacement, our cloud versus on-premises decision framework provides guidance on making the right infrastructure choice.
How long does a VMware migration typically take?
A typical VMware migration for a small-to-medium business (50-200 VMs) takes 12-18 months from initial evaluation through final cutover, with larger enterprises often requiring 24-48 months. This timeline includes proof-of-concept testing (2-3 months), migration planning and preparation (3-6 months), phased workload migration (6-12 months), and final validation and cleanup (1-3 months). Attempting to compress this timeline increases risk of business disruption and security gaps.
Why migrations take longer than expected
When organisations first consider migrating from VMware, there’s often an assumption that it’s primarily a technical lift-and-shift exercise. Move the VMs, update the automation scripts, retrain the staff—done in a few months, right?
Reality is more complex. A VMware migration involves multiple phases, each with its own timeline requirements.
Assessment and evaluation (1-3 months) requires inventorying all VMs and dependencies, identifying migration complexity per workload, evaluating alternative platforms, and building an initial business case. Gartner estimates this phase requires 7-10 full-time equivalents for one month.
Planning (2-4 months) involves selecting the target platform, designing the new architecture, planning migration waves based on workload criticality and complexity, and establishing success criteria. This phase can’t be rushed—poor planning leads to failed migrations.
Proof-of-concept (2-3 months) migrates non-critical workloads, tests performance and functionality, refines migration procedures, and trains the operations team on the new platform. A properly scoped proof-of-concept definitively answers whether your chosen alternative meets your specific requirements.
Production migration (6-24 months) moves workloads in planned waves, validates each wave before proceeding, maintains parallel operations during the transition, and eventually decommissions VMware infrastructure. The phased approach maintains business continuity but extends timelines.
Real-world migration example
Michelin’s platform engineering team provides a useful case study. They migrated 450 applications from VMware’s Tanzu Kubernetes Grid to their in-house Michelin Kubernetes Services in a six-month timeline.
As Michelin engineer Quennesson noted, “By having the knowledge of working on the technology for a couple of years, we were able to move rather quickly out of Tanzu—maybe quicker than moving to another vendor solution.”
The migration resulted in a 44% cost reduction with 42 locations supported by an 11-person engineering team. But note the key factor: they had years of experience with the target platform before beginning the migration. Organisations learning a new platform while migrating typically require longer timelines.
Timeline by environment size
Small environments (fewer than 100 VMs) typically require 3-6 months with fewer dependencies and faster testing cycles.
Medium environments (100-500 VMs) typically require 6-12 months for application testing and staged rollout.
Large environments (500-2,000 VMs) typically require 12-24 months due to complex integrations and compliance requirements.
Enterprise environments (2,000+ VMs) typically require 18-48 months for multiple datacentres and extensive testing.
The risks of compression
Some organisations, facing steep price increases and immediate renewal deadlines, attempt to compress these timelines. The risks include security vulnerabilities, inadequate testing, and operational disruptions.
Security researchers at RunZero documented a “massive increase in deployed Proxmox VE systems” over the past year, alongside an increase in out-of-date and end-of-life installations. Only a small percentage of Proxmox users are keeping up with the latest patches.
RunZero founder HD Moore warned that when organisations deploy end-of-life Proxmox versions, “the entire operating system no longer receives security updates, not just the Proxmox VE software. This means that every new vulnerability in Debian may also impact these older versions, including supporting services like OpenSSH”.
Rushed migrations skip proper security hardening, compliance validation, and thorough testing. The short-term time savings create long-term security risks.
For step-by-step migration planning guidance including phase-by-phase timelines, tool recommendations, and proof-of-concept best practices, read our detailed migration planning and execution guide.
How much does it cost to migrate away from VMware?
Total migration costs typically range from $50,000 to $500,000+ depending on infrastructure size, complexity, and whether you use internal resources or consultants. This includes alternative platform licensing (if commercial), migration tools and consulting, staff retraining and productivity losses during transition, and potential hardware upgrades. However, organisations facing 5x-10x VMware price increases often reach break-even within 18-36 months, making migration financially viable despite upfront costs.
Direct costs you can budget for
Alternative platform licensing varies by choice. Proxmox and XCP-ng are free with optional enterprise support subscriptions ranging from €110 to €1,495 per node annually. Nutanix AHV is included with Nutanix HCI subscriptions. Microsoft Hyper-V is included with Windows Server licenses (though Datacenter edition for unlimited VMs costs more than Standard).
Migration tools and consulting represent a cost variable. Gartner estimates per-VM migration costs range from $300 to $3,000 depending on complexity. For a 200-VM environment, that’s $60,000 to $600,000 just for migration services.
Some organisations use internal resources to minimise these costs, but this assumes your staff has capacity beyond their day-to-day operational responsibilities. Most organisations find they need at least some external consulting to accelerate the process and avoid costly mistakes.
Hardware upgrades may be required depending on your current infrastructure. If you’re running older servers that were amortised over previous VMware licensing periods, migration might present an opportunity to refresh hardware simultaneously. This isn’t strictly a migration cost, but it affects the overall budget picture.
Hidden costs most organisations underestimate
Staff retraining typically requires 40-80 hours per administrator. A team of five administrators needs 200-400 hours of training. At internal cost rates, that’s $20,000-$40,000 in direct training costs, not counting the productivity impact during the learning period.
Productivity losses during the learning curve result in 20-30% efficiency drops for 3-6 months as your team adjusts to the new platform. If your operations team manages 500 VMs on VMware with established workflows and automation, expect slower incident response, longer change windows, and more cautious operations during the transition period.
Team retraining requires minimum 2-4 weeks per engineer according to migration planning estimates. For a five-person team, that’s 10-20 weeks of reduced productivity.
Data transfer time for large environments can be substantial. Transferring 40TB at 2GB/minute requires 340+ hours. During this time, you’re often running parallel infrastructure and managing synchronisation between platforms.
The dual platform reality
Many organisations underestimate a key cost factor: you’ll pay for both platforms during the migration period.
As Keith Townsend notes, “You’ll run dual platforms during transition, paying both Broadcom AND the new platform vendor for 3-5 years”. Broadcom won’t negotiate based on declining footprint—you pay for your current environment regardless of migration plans.
If your VMware costs are $400,000 annually and your target platform costs $100,000 annually, you’re not immediately saving $300,000. For the first year of migration, you’re paying $500,000 ($400,000 for VMware plus $100,000 for the new platform). Only after completely decommissioning VMware do you realise the full savings.
Break-even analysis
Despite these costs, organisations facing steep VMware price increases often find migration financially justified.
A mid-sized European financial services provider faced annual subscription costs of approximately €400,000 for VMware Cloud Foundation compared to previous predictable annual maintenance costs of €180,000. That’s a €220,000 annual increase.
If migration costs total €300,000 (including licensing, consulting, training, and productivity losses), they reach break-even in less than 18 months. Every year beyond that represents €220,000 in savings compared to staying with VMware at the new pricing.
The break-even calculation must account for Broadcom’s pricing trajectory. Will renewal costs continue increasing annually? Many organisations signing 1-year deals with Broadcom are buying time for migration planning while limiting their long-term commitment.
When migration doesn’t make economic sense
Migration might not be cost-effective if you’re facing relatively modest price increases (less than 2x), have deep integration with VMware-specific features that are expensive to replicate, lack internal capacity and would need extensive consulting, or operate in a regulated environment where platform changes trigger expensive recertification processes.
As Townsend points out, “If purely escaping Broadcom with no strategic drivers, transformation likely costs more than staying”.
For a comprehensive financial analysis framework including worksheets and detailed cost breakdowns, read our total cost of ownership analysis.
What are the risks of staying with VMware vs leaving?
Staying with VMware carries budget risk (continued price increases, loss of negotiating leverage as alternatives mature), vendor lock-in risk (increasing switching costs over time), and potential ecosystem erosion (partner departures, reduced third-party integration investment). Migration carries technical risk (platform incompatibilities, feature gaps), operational risk (downtime during transition, staff learning curve), and security risk if rushed (unpatched systems, compliance gaps, inadequate hardening).
The risks of staying
Budget risk affects most organisations considering VMware renewal. Broadcom has demonstrated willingness to impose steep increases—from 150% to over 1000% in documented cases. What’s your contingency if renewal costs double again at your next renewal cycle?
Your negotiating leverage decreases as alternatives mature and more customers leave. Broadcom’s strategy focuses on extracting maximum revenue from remaining customers rather than competing on price. As the customer base shrinks, the per-customer revenue expectations increase.
For detailed analysis of how Broadcom’s pricing strategy affects your negotiating position, see our pricing crisis deep-dive.
Vendor lock-in deepens over time. Every year you remain on VMware while investing in VMware-specific automation, integrations, and operational processes, you increase your switching costs. Features you adopt today (perhaps included in your current VCF bundle) become dependencies that complicate future migration decisions.
Ecosystem erosion presents a longer-term risk. As the established ecosystem thins, third-party tool vendors may reduce their VMware integration investments. The ecosystem that made VMware attractive may gradually diminish.
Broadcom’s focus on private cloud leaves many customers out of step with VMware’s long-term strategic direction. Most enterprises are moving toward hybrid multi-cloud strategies, while Broadcom emphasises private cloud. This strategic misalignment may create friction over time.
The risks of migration
Technical risk varies by workload. Basic VM workloads migrate with minimal technical risk—they’re relatively platform-agnostic. Advanced VMware features like NSX networking, vSAN storage, DRS resource optimisation, and complex automation create genuine migration challenges.
Most alternatives provide functional equivalents (Proxmox has Ceph and ZFS for storage, clustering for availability, live migration for mobility), but they’re not identical. You’ll need to redesign certain workflows and automation scripts.
As Gartner analyst Paul Delory notes, “There is no like-for-like replacement for the VMware hypervisor on the market.” Migration requires accepting some functional differences.
Our comprehensive platform comparison examines feature parity and technical trade-offs across all major alternatives.
Operational risk centres on business continuity. What happens if migration doesn’t go as planned? Phased migration approaches reduce this risk by moving workloads in waves based on criticality. You validate each wave before proceeding, maintaining parallel VMware infrastructure until you’re confident in the new platform.
But phased migration extends timelines and requires careful coordination. You’re managing two platforms simultaneously with different operational procedures, different automation tools, and different troubleshooting approaches.
Your staff faces a learning curve. Even experienced systems administrators need time to become proficient on new platforms. During this learning period, incident response slows, change management becomes more cautious, and operational efficiency drops.
Security risk emerges primarily from rushed migrations. The RunZero research on unpatched Proxmox deployments demonstrates what happens when organisations prioritise speed over proper security practices.
Common security gaps in rushed migrations include unpatched systems deployed into production, inadequate security hardening (accepting platform defaults without proper configuration), compliance controls not properly reimplemented (SOC 2, HIPAA, PCI-DSS requirements), and insufficient validation and testing before production cutover.
A proper migration timeline includes dedicated security hardening and compliance validation phases. Skipping these phases to accelerate migration creates vulnerabilities that may take years to fully remediate.
For detailed security best practices and risk mitigation strategies, read our security and compliance guide.
Balancing the risks
Neither path is risk-free. Staying with VMware at elevated prices creates budget risk and potential lock-in. Migrating creates technical, operational, and security risks.
The question isn’t which option has zero risk—it’s which risks you’re better positioned to manage. Organisations with primarily standard VM workloads, strong internal engineering capacity, and 5x+ price increases often find migration risks manageable compared to the budget certainty benefits.
Organisations with deep VMware feature dependencies, limited staff capacity, and moderate price increases may find staying less risky despite the cost impact.
For a comprehensive risk assessment framework, see our migration planning guide, which includes risk mitigation strategies for each migration phase.
When do I need to decide about staying or leaving VMware?
Your decision timeline aligns with your VMware license renewal date, but effective evaluation requires beginning 12-18 months before renewal to allow time for proof-of-concept testing and migration planning if needed. Organisations with renewals in the next 6-12 months face compressed timelines and weaker negotiating positions. Those with longer runway have more leverage to negotiate with Broadcom while simultaneously evaluating alternatives, but waiting too long risks capacity constraints as migration specialists become increasingly booked.
Critical upcoming deadlines
Several dates affect the urgency of your decision:
October 31, 2025: VMware partner programme deadline. Partners not meeting Premier thresholds (3,500+ cores) lose transacting rights. If you rely on regional VMware partners, you may lose support access. Without an approved partner, organisations face direct Broadcom negotiations or must consider migration.
November 1, 2025: Google Cloud VMware Engine changes shift to bring-your-own subscription licensing, adding complexity for cloud-dependent workloads.
October 2025: vSphere 7 reaches end-of-support. Organisations still on vSphere 7 face forced upgrades or accepting unsupported infrastructure. This may accelerate migration decisions for organisations already evaluating alternatives.
How renewal timing affects your position
If your renewal is in the next 6-12 months, you face compressed decision timelines. Proof-of-concept testing requires 2-3 months minimum. If you need that validation before committing to migration, you must start immediately to inform your renewal decision.
Your negotiating position with Broadcom weakens when they know you lack viable alternatives. Starting evaluation early—even if you ultimately renew—provides leverage. Broadcom is more willing to negotiate when they believe you have credible alternatives.
Community members report customers signing 1-year VMware deals to buy time for migration planning. These shorter commitments limit Broadcom exposure to 12 months, provide runway for proper migration planning, and still require migration to start immediately to complete before renewal.
The downside: you may face a 20% late renewal penalty if migration extends beyond the one-year term. Factor this risk into your timeline planning.
Migration timeline implications
Earlier migration reduces total cost by limiting years paid under Broadcom’s increased pricing. Starting migration in November 2025 means earliest completion is mid-2027 (18 months), with likely completion in 2028 (24-36 months). You’ll pay increased VMware licensing during the entire migration period.
Starting in 2024 allowed completion by late 2026, avoiding 1-2 years of increased VMware costs, with more time for proper testing and staff training.
Every additional year on Broadcom’s new pricing adds $200,000-$400,000+ to your cumulative costs for mid-sized deployments.
Market capacity concerns
As more organisations decide to migrate, consulting and support capacity tightens. Early movers have more service provider options and can negotiate terms. Organisations waiting until 2026-2027 to begin migration may find:
- Migration consultants booked months in advance
- Alternative platform vendors struggling with support queue backlogs
- Premium pricing for expedited migration services
- Longer lead times for enterprise support contracts
Don’t let renewal dates be your only driver
While renewal timing creates natural decision points, proactive evaluation strengthens your position regardless of renewal date. Starting assessment 18 months before renewal gives you time to:
- Properly scope proof-of-concept testing
- Evaluate multiple alternatives thoroughly
- Build credible business cases for leadership
- Negotiate with Broadcom from a position of strength
- Plan migration execution if that’s your decision
Budget planning cycles may require earlier decisions than technical timelines suggest. If your budgeting process happens 12-18 months before fiscal year start, align stakeholder communication on evaluation criteria early.
For detailed guidance on building migration timelines and planning your decision process, read our comprehensive migration planning guide.
Resource Hub: VMware Migration Library
Understanding the Crisis
Broadcom VMware Pricing Changes – Understanding the Licensing Crisis Driving Migration
What changed after the acquisition, how pricing models work under Broadcom, and what the 72-core minimums mean for your organisation. Includes real price increase examples and negotiation guidance.
Read time: 10-12 minutes | Best for: Understanding what changed and why
Evaluating Your Options
VMware Alternatives Compared – Proxmox XCP-ng Nutanix and Hyper-V for Enterprise Workloads
Feature comparison, enterprise readiness assessment, and platform selection guidance for the leading alternatives. Includes detailed comparison tables and use case recommendations.
Read time: 15-18 minutes | Best for: Choosing the right alternative for your needs
Cloud vs On-Premises Virtualisation – Making the Right Infrastructure Decision After VMware
Decision framework for evaluating cloud migration vs on-premises hypervisor replacement, with workload suitability analysis and cost comparison scenarios.
Read time: 10-12 minutes | Best for: Deciding between cloud and on-premises paths
Planning and Execution
VMware Migration Planning – Timeline Tools and Best Practices for a Successful Transition
Step-by-step migration process, realistic timeline expectations, tool recommendations, and proof-of-concept guidance. Includes real-world migration examples and common pitfalls to avoid.
Read time: 12-15 minutes | Best for: Planning and executing your migration
VMware Migration TCO Analysis – Calculating the True Cost of Staying vs Leaving
Cost calculation framework, break-even analysis methodology, hidden cost identification, and ROI modelling. Includes real cost examples and budget worksheets.
Read time: 10-12 minutes | Best for: Building the business case for migration
Security and Compliance During VMware Migration – Avoiding the Risks of Rushed Transitions
Security hardening checklist, compliance requirement mapping, and risk mitigation strategies to avoid the pitfalls of rushed migrations. Addresses patching, NSX replacement, and audit requirements.
Read time: 10-12 minutes | Best for: Ensuring migration doesn’t create security gaps
FAQ
Is VMware going away?
No, VMware isn’t disappearing, but Broadcom’s strategy focuses on extracting maximum revenue from large enterprise customers rather than serving the broad market. Many organisations will continue using VMware, but at higher costs. The question isn’t whether VMware will exist, but whether it remains the optimal choice for your specific needs and budget.
Can someone explain the VMware situation in simple terms?
Broadcom bought VMware for $61 billion in November 2023 and immediately changed the business model to maximise short-term revenue. They eliminated cheaper licensing options, set high minimum purchase requirements, and raised prices dramatically. Many organisations now face costs 3x-10x higher than before, triggering a wave of migrations to alternatives like Proxmox, Nutanix, and cloud platforms. Gartner predicts 35% of VMware workloads will move to other platforms by 2028.
What does the Gartner VMware prediction mean for my company?
Gartner’s 35% migration prediction suggests the alternatives have matured to the point where a portion of workloads can successfully migrate. This validates that evaluating alternatives is prudent business practice, not a fringe reaction. However, it also means 65% are predicted to stay—the decision should be based on your specific economics, technical requirements, and risk tolerance, not just following the crowd.
What’s the easiest alternative to VMware for a small company?
For small-to-medium businesses with straightforward virtualisation needs, Proxmox VE typically offers the smoothest transition. It provides a web-based management interface, handles the most common VM workloads, and reduces licensing costs. Purchasing a Proxmox support subscription provides enterprise-level assistance while maintaining cost savings compared to VMware under Broadcom’s pricing. However, “easiest” depends on your specific infrastructure and team expertise—see our comprehensive alternatives comparison for detailed evaluation guidance.
Is Proxmox good enough to replace VMware?
Proxmox has matured into an enterprise-capable platform that successfully handles the majority of virtualisation workloads. For standard VM hosting, it matches VMware’s core capabilities. However, organisations with deep dependencies on VMware-specific features (particularly NSX networking, advanced vSAN features, or complex DRS automation) will find feature gaps. The question isn’t whether Proxmox is “good enough” in the abstract, but whether it meets your specific requirements. A properly scoped proof-of-concept (2-3 months) definitively answers this question for your environment.
How do I know if I should migrate from VMware?
Start with three questions: First, what is your cost increase at renewal under Broadcom’s pricing? Second, how dependent is your infrastructure on VMware-specific advanced features? Third, does your organisation have the internal capacity or budget for external consultants to execute a 12-24 month migration project? If you’re facing a 5x+ cost increase, use primarily standard VMware features, and have project capacity, migration likely makes financial sense. Our TCO analysis guide provides a detailed decision framework.
What are the security risks of rushing a VMware migration?
Research on unpatched Proxmox deployments demonstrates the security risks of rushed migrations. Common security gaps in rushed migrations include: unpatched systems deployed into production, inadequate security hardening following platform defaults, compliance controls (SOC 2, HIPAA, PCI-DSS) not properly reimplemented, and insufficient validation and testing before production cutover. A proper migration timeline includes dedicated security hardening and compliance validation phases—see our security and compliance guide for detailed best practices.
