For the longest time, VMware was the IT version of gravity. You didn’t really think about it; you just trusted it would keep everything running smoothly. Need virtualization? VMware. Want stability? VMware. It was the safe, boring, don’t-overthink-it choice.
But in 2025, that safety net has holes — and it’s enlarging rapidly. Because VMware’s new ownership is giving users a few too many reasons to abandon ship. Perpetual licenses? Out. Flexibility? Out. Expense? Let’s just say CIOs are getting sticker shock so bad it should be charted on a doctor’s prescription pad. Some businesses have been charged 400% to 1,000% more, and AT&T went to court after estimating a 1,050% hike. Imagine walking into your CFO’s office with that news.
This is not merely a matter of a price quibble. It’s a seismic shift. The VMware you built your infrastructure around isn’t the VMware you’re paying for now. And the longer you are in denial about that, the more brutal the crash will be.
Here’s the thing: the world of IT isn’t waiting around. Cloud hyperscalers are running full speed with AI, serverless, edge, and microservices. Meanwhile, VMware’s new direction seems focused on serving only the largest enterprises — leaving many mid-market businesses feeling sidelined by increasingly bundled, heavyweight private-cloud offerings.
Virtual machines were great — in 2005. In 2025, they’re the fax machine of infrastructure. Containers are lighter, faster, cheaper, and loved by developers. Kubernetes has become the de facto cloud operating system. VMware attempted to join the fun with Tanzu, but its focus has shifted. (Translation: VMware may no longer be positioning itself as a leader in this segment.)
Remember when VMware’s ESXi hypervisor was untouchable? Now it’s… just another hypervisor. Nutanix AHV, Microsoft Hyper-V, and even free open-source platforms like Proxmox all do the same job. VMware’s crown jewel has turned into costume jewelry.
But here’s the real kicker — and the part CIOs can’t ignore. VMware isn’t just less innovative; it’s dramatically more expensive and more complicated.
Calculate it, and VMware has gone from “the platform that saved us money” to “the platform that forces us to explain awkward invoices to the CFO.”
Let’s be honest: VMware is not collapsing. Based on what we have seen, it has a very clear idea of what it’s doing — pursuing its top 10,000 accounts and allowing the rest to drift. For many mid-sized and growing businesses, it can sometimes feel like the spotlight — and support — has shifted toward the industry giants.
So where does that leave you? Two options:
Let’s credit VMware where it’s due: it defined an era. But that era is gone. The things VMware once represented — efficiency, agility, cost savings — now reside elsewhere. In the cloud. In containers. In platforms that don’t penalize you for possessing the “wrong” CPU.
This is bigger than licensing. It’s about being resilient. About making IT an enabler of growth rather than an expense that you have to justify every quarter. VMware might still work for the Walmarts of the world, but for everyone else, it’s time to begin planning the exit.
At Intwo, we view this change not as an issue but rather as an opportunity. An opportunity to break free from the outdated complexity, embrace modern platforms, and reclaim control of your IT future.
Download our whitepaper on VMware’s changing landscape. Get the insights you need now to plan your exit before Broadcom forces your hand.
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