The great virtualization reset
Enterprises are in the midst of a pivotal 18- to 24-month disruption window. And Broadcom’s VMware pricing shock was the catalyst. In December 2023, VMware licensing shifted to subscription-only models with new per-core pricing and bundle requirements. Changes hit new customers immediately and were applied to renewals from February 2024. It’s significant news for the majority of today’s enterprises, as findings of our 2026 survey reveal over half (54%) are currently running a primarily VMware-based virtualization setup.
Faced with the resulting dramatically increased costs and constrained choice, businesses are now in the phase of re-evaluating their virtualized estates. But many are wrestling with the change as a narrow question: whether to stick with VMware and go hybrid/private or migrate away entirely.
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