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.
Broadcom’s acquisition of VMware has fundamentally changed the economics and direction of the platform. Perpetual licenses have been eliminated, replaced by subscription-only models. Pricing has increased dramatically, with some businesses reporting cost hikes of 400% to 1,000%. Products have been bundled into larger packages, forcing customers to pay for tools they do not use. The VMware that many businesses built their infrastructure around is no longer the same VMware they are paying for today. These changes are forcing IT leaders to rethink their long-term dependency on the platform.
The price increases have been staggering. Some businesses have reported cost hikes ranging from 400% to over 1,000% compared to what they were previously paying. AT&T even went to court after estimating a 1,050% increase in their VMware costs. Broadcom has shifted VMware to a subscription-only model and introduced per-core licensing that charges for a minimum of 16 cores even if your CPU has fewer. These changes have turned VMware from a cost-saving platform into a significant and often unexpected expense for many organizations.
Broadcom has made several major licensing changes. Perpetual licenses are no longer available, meaning you cannot purchase VMware outright. Everything is now subscription-based, creating ongoing budgeting uncertainty. Per-core licensing charges a minimum of 16 cores regardless of your actual CPU configuration. And individual products like vSphere can no longer be purchased separately. Instead, customers are forced into bundled packages like VMware Cloud Foundation, which includes NSX, vSAN, and Aria, even if they have no use for those additional tools. These changes significantly increase costs for most customers.
VMware is losing ground for several reasons. Cloud hyperscalers like Microsoft Azure and AWS are advancing rapidly with AI, serverless computing, edge capabilities, and microservices. Containers and Kubernetes have become the preferred approach for modern application deployment, making traditional virtual machines feel outdated. And VMware’s ESXi hypervisor, once considered untouchable, now competes with capable alternatives like Microsoft Hyper-V, Nutanix AHV, and even free open-source platforms like Proxmox. The combination of rising costs and a shrinking innovation lead is pushing many businesses to explore alternatives.
Virtual machines create a full copy of an operating system for each workload, which uses more resources and takes longer to start. Containers are lighter, faster, and more efficient because they share the host operating system and only package the application and its dependencies. Developers prefer containers because they are portable, scalable, and work well with modern cloud-native architectures. Kubernetes has become the standard for managing containers at scale. This shift matters because it makes traditional VM-heavy platforms like VMware less essential for organizations building modern applications.
Broadcom has made it clear that VMware’s primary focus is on its top 10,000 enterprise accounts. This means mid-sized and growing businesses may find themselves receiving less attention, less flexible pricing, and fewer options that match their needs. For many organizations outside that top tier, the combination of higher costs, forced bundling, and reduced support creates a situation where staying on VMware becomes harder to justify. These businesses are increasingly looking at alternatives that offer better economics, more flexibility, and a partnership model that values their size.
There are several strong alternatives depending on your needs. Microsoft Azure provides a full cloud platform with Azure VMware Solution for businesses that want to migrate VMware workloads to the cloud with minimal changes. Microsoft Hyper-V offers a capable on-premises hypervisor included with Windows Server. Nutanix AHV provides a hyperconverged infrastructure platform with its own built-in hypervisor. AWS offers cloud migration paths as well. And open-source options like Proxmox are available for organizations comfortable managing their own infrastructure. Each option offers greater flexibility and better economics than VMware’s current model.
Azure VMware Solution, or AVS, lets businesses run their existing VMware workloads natively on Microsoft Azure infrastructure. This means you can move your virtual machines to the cloud without having to re-architect your applications. It provides a familiar VMware environment while giving you access to Azure’s broader ecosystem of services including AI, analytics, security, and backup. AVS is particularly useful as a first step for businesses that want to escape Broadcom’s pricing changes while keeping their current workloads running smoothly during a phased modernization journey.
Do not wait until your next renewal forces a decision. Start by auditing your current VMware environment to understand exactly what you are using, what you are paying for, and where you have room to optimize. Evaluate alternatives based on your workload requirements, budget, and long-term strategy. Build a migration roadmap that balances modernization with business continuity. Consider a phased approach that moves workloads incrementally rather than all at once. And work with a cloud partner who has experience migrating VMware environments to platforms like Azure so you can make the transition smoothly and with minimal risk.
Intwo is an Azure Expert Managed Services Provider with proven experience helping businesses migrate away from VMware to Microsoft Azure. They offer VMware migration services that include environment assessment, migration planning, execution, and ongoing managed operations. Intwo helps you evaluate options like Azure VMware Solution for a lift-and-shift approach or full cloud-native modernization depending on your goals. They also provide a downloadable whitepaper on VMware’s changing landscape to help you plan your exit strategy. Whether you need to reduce costs, improve flexibility, or future-proof your infrastructure, Intwo delivers the expertise to make the transition with confidence.
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