Do these 3 things before closing this tab:
1Fix the driver behind crashes, sound loss and screen glitches2Clear out junk files and repair common Windows errors3Scan for outdated or missing drivers - takes under a minuteBroadcom may be losing some VMware customers without losing the economics of the business. Since acquiring VMware in November 2023, Broadcom has ended perpetual licensing, pushed customers toward subscriptions and bundles, changed partner arrangements, and made VMware Cloud Foundation (VCF) its strategic flagship. Those moves have encouraged many organizations to evaluate alternatives—but they may also produce higher recurring revenue and lower operating costs from the customers that remain.
The evidence supports a narrower conclusion than “Broadcom is making a fortune from VMware.” Broadcom does not separately report VMware revenue or profit. However, its infrastructure-software revenue was $7.178 billion in the second quarter of fiscal 2026, up 9% year over year, and the company said strong VCF demand was the primary growth driver. Because the segment includes software businesses beyond VMware, that figure is not a standalone VMware result. Broadcom’s results show that the transition is being monetized, not that every VMware customer is staying.
The VMware exodus is real—but “abandonment” is not one thing
Broadcom’s 2025 annual report says its pricing, portfolio, and partner changes have led many VMware customers to explore alternatives. That is significant because it is the vendor’s own disclosure, but it does not quantify how many customers have completed a migration. Broadcom’s annual report supports customer pressure, not a precise churn rate.
Independent surveys point in the same direction while requiring careful interpretation. TechRadar reported that 86% of CloudBolt survey respondents were actively reducing their VMware dependency; 72% of migrating respondents were choosing public-cloud infrastructure rather than another hypervisor. ITPro reported that 88% of respondents were concerned about future VMware price increases, while only 5% had actually experienced costs more than doubling. TechRadar’s report and ITPro’s report describe survey results—not audited customer-loss figures.
Outdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchPC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11#1 Best Overall
In practice, the market contains several different outcomes:
- Considering alternatives.
- Reducing the VMware footprint.
- Running a proof of concept.
- Moving selected workloads.
- Renewing VMware while negotiating or consolidating.
- Keeping VMware for critical applications while using another platform elsewhere.
- Leaving VMware completely.
Most public evidence measures the first four categories, not total abandonment. For investors, that distinction matters: a customer that moves its development environment but renews VMware for production is not equivalent to a lost account.
What changed after Broadcom bought VMware?
Broadcom completed the acquisition in November 2023. VMware then announced the end of availability of perpetual licenses and related offerings, with the public explanation dated January 22, 2024. VMware’s announcement marked a fundamental commercial change: customers would generally buy subscriptions rather than own perpetual licenses with separate support renewals.
Broadcom also reorganized the portfolio around two principal directions:
The Tool Desk
Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →- VMware Cloud Foundation: the broader private-cloud platform combining compute, storage, networking, management, and related capabilities.
- VMware vSphere Foundation: a narrower option for customers that need core VMware virtualization without the full VCF scope.
The company describes this as simplification. Customers may experience it as forced bundling, fewer standalone choices, new minimum-core requirements, higher renewal exposure, or a need to pay for capabilities they do not use. Broadcom’s licensing explanation and business-simplification announcement explain the vendor’s rationale.
The changes also affected partners and cloud-service providers. That matters because many organizations consume VMware through a hosted private-cloud provider rather than buying and operating every component themselves. Customers must check whether their provider remains authorized and supported, whether existing contracts can continue, and whether a migration would require changing providers.
Why customers are considering an exit
Subscription and per-core economics
The move away from perpetual licensing changes the financial profile for customers. Instead of owning an ongoing license asset and paying support, organizations face recurring commitments, renewal risk, and potentially different costs as host core counts change.
Rank #2
The main pressure points include:
- Subscription commitments replacing perpetual ownership.
- Minimum-core rules.
- Bundled products that may exceed actual requirements.
- Loss of narrow standalone purchasing options.
- Uncertainty about future price increases.
- Different economics for small clusters, remote offices, and service providers.
Anecdotes about sixfold or tenfold increases may illustrate individual customer experiences, but they are not market averages unless supported by representative data. The correct comparison is a three- to seven-year total-cost model, not a single renewal quote.
Procurement and operational risk
Licensing changes can force new approvals, multi-year commitments, entitlement reviews, and reassessments of backup, disaster-recovery, and security arrangements. Even when the technology remains stable, the commercial uncertainty can make a competing platform appear more attractive.
Portfolio and channel disruption
Customers may have designed architectures around products that were discontinued, folded into bundles, or repositioned. A smaller portfolio can reduce Broadcom’s support and sales complexity while reducing customer choice. Partner changes can similarly affect hosted VMware customers without requiring the underlying technology to fail.
Why many companies will stay
Leaving VMware is expensive, slow, and operationally risky. Large estates often contain years of automation, monitoring, backup integration, network configuration, storage policies, and administrator expertise. A virtual machine that boots on another hypervisor may still require new drivers, security controls, backup workflows, performance tuning, application certification, or disaster-recovery procedures.
Reasons to stay include:
- Large existing VMware estates and sunk implementation costs.
- Dependence on vCenter, vSAN, NSX, HCX, Horizon, or VMware-specific automation.
- Established backup, replication, and security integrations.
- Applications that are difficult to replatform.
- Regulatory, uptime, or business-continuity requirements.
- Existing subscription commitments.
- Retraining and recruitment costs.
- The risk of running two platforms during a lengthy migration.
A company can rationally accept a substantial price increase if migration cost, downtime risk, and operational disruption would be higher. That is the foundation of Broadcom’s strategy: it does not need every customer to stay if the retained accounts are large, deeply embedded, and more valuable.
How Broadcom can benefit while customers leave
1. Subscriptions make revenue more recurring
A perpetual license produces a large initial transaction followed by support revenue. A subscription creates a more predictable renewal stream and gives the vendor greater control over packaging and future pricing. Broadcom explicitly described the transition as moving VMware toward an annual-recurring-revenue model. Its licensing announcement sets out that strategy.
2. Bundles can raise revenue per retained account
VCF encourages customers to buy a broader private-cloud platform rather than an isolated hypervisor. If a customer retains VMware and adopts more of the stack, Broadcom can increase the value of the contract even as the total customer count declines.
Rank #3
3. A smaller customer base can cost less to serve
Simplified products, standardized contracts, fewer routes to market, and concentration on strategic accounts can reduce sales, engineering, support, and partner-management expense. Broadcom has not disclosed enough VMware-only information to calculate those savings, so this remains a strategic inference rather than a measured result.
4. VCF creates a new private-cloud and AI pitch
Broadcom is positioning VMware as more than a legacy hypervisor. VCF 9.1, announced May 5, 2026, was presented as an AI- and Kubernetes-oriented private-cloud platform supporting mixed AMD, Intel, and NVIDIA infrastructure. Broadcom’s VCF 9.1 announcement suggests the company wants retained customers to buy into a broader infrastructure strategy, including private AI workloads.
Quick wins for a faster PC:
Repair Windows errors before they cause bigger problemsFix Now →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →That creates a possible second growth phase: some customers may reduce traditional vSphere usage while large enterprises adopt VCF for private-cloud, Kubernetes, and AI infrastructure. Whether that replacement is large enough to offset lost or downsized accounts remains unresolved.
What Broadcom’s financial results do—and do not—prove
In the second quarter of fiscal 2026, Broadcom reported:
| Measure | Result |
|---|---|
| Total revenue | $22.187 billion, up 48% year over year |
| Infrastructure-software revenue | $7.178 billion, up 9% year over year |
| Infrastructure software as a share of revenue | 32% |
| Adjusted EBITDA | $15.244 billion, or 69% of revenue |
| Free cash flow | $10.262 billion |
Broadcom said strong demand for VMware Cloud Foundation primarily drove infrastructure-software growth. But the segment includes businesses beyond VMware, and Broadcom does not separately disclose VMware revenue or profit in the cited results. The company’s overall revenue and free cash flow are also heavily influenced by its semiconductor operations, including AI-related demand.
Therefore, the defensible conclusion is that Broadcom is monetizing the VMware transition and reporting positive software momentum—not that VMware alone has generated a proven profit windfall.
What “leaving VMware” actually involves
| Path | Why organizations choose it | Main trade-offs |
|---|---|---|
| Public cloud | Managed infrastructure, elastic capacity, and less on-premises hardware | Egress charges, recurring operating costs, refactoring, and new security and operations models |
| Nutanix AHV | Integrated enterprise private cloud and hyperconverged infrastructure | Software, hardware, node, migration, and training costs; not automatically cheaper |
| Proxmox VE | Open-source foundation and low software licensing cost | Greater need for internal expertise; ecosystem, certification, backup, and support differences |
| Hyper-V and Azure Local | Strong fit for Microsoft-standardized organizations | Microsoft licensing and Azure Local economics require a specific model; less vendor-neutral |
| OpenShift Virtualization | VM and container consolidation for OpenShift users | Can be excessive for a simple hypervisor replacement and requires Kubernetes maturity |
| Stay and right-size | Lower migration risk while reducing licensed capacity | Continued dependence on Broadcom’s commercial model and future renewals |
Public cloud
Azure, AWS, and Google Cloud can remove hardware-management burdens and accelerate modernization. But cloud is not automatically cheaper. Egress, storage, networking, managed services, security, and consulting can create substantial recurring costs. Microsoft reported 39% growth in Azure and other cloud services in fiscal 2026’s second quarter, showing strong demand for cloud infrastructure, but that does not establish that every VMware migration benefits financially. Microsoft’s results provide market context, not a migration business case.
Nutanix AHV
Nutanix is a serious enterprise alternative for organizations seeking integrated compute, storage, virtualization, and hybrid-cloud management. Its own annual report identifies Broadcom’s changes as an opportunity while noting that migration time, interoperability, and available alternatives can limit conversion. Nutanix’s filing is useful evidence, but it is also a competitor’s disclosure.
Compare Nutanix as a full infrastructure platform, including nodes, support, storage, migration, and staffing—not merely as a replacement hypervisor.
Proxmox VE
Proxmox VE combines KVM and LXC with optional paid enterprise subscriptions and support. It can suit smaller environments, laboratories, cost-sensitive organizations, and technically capable teams. The software’s open-source foundation does not make production operation cost-free: hardware, administration, backup, disaster recovery, support, and migration remain real expenses. See the official product page and subscription information.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Hyper-V and Azure Local
Microsoft’s stack can be attractive where Windows Server, System Center, Azure, and enterprise agreements are already central to IT operations. Azure Local offers a hybrid path, but its economics depend on the specific Azure subscription, hardware, services, and licensing arrangement. Use Microsoft’s current commercial process rather than a generic per-VM assumption. Microsoft’s Azure Local page provides the current product context.
OpenShift Virtualization
OpenShift Virtualization is most relevant to enterprises already adopting Red Hat OpenShift and wanting to run VMs and containers on a common Kubernetes-oriented platform. It may be strategically valuable, but it is rarely the simplest answer for a small estate seeking a direct VMware substitute. Red Hat’s product page describes the platform.
Staying with VMware but reducing exposure
Some organizations can consolidate clusters, reduce licensed cores, move low-risk workloads elsewhere, negotiate a longer contract, or retain VMware only for applications with the highest migration risk. Eligible newer VCF subscriptions may also offer license portability across supported hybrid-cloud endpoints and on-premises environments, subject to program conditions. VMware’s portability policy should be checked against the actual contract.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.A practical decision framework
1. Build a complete cost model
Include VMware subscription and support, minimum-core rules, hardware refreshes, storage, networking, backup, disaster recovery, security tools, migration software, consulting, training, temporary dual-running, application remediation, downtime risk, cloud egress, and contractual exit costs. Model at least three and five years; seven years may be appropriate for long-lived infrastructure.
Free tools Windows power users keep installed
One-click scans. No signup required.
Best Value
- Upgraded Two Zipper Pockets: Forvencer server books feature two secure zipper pockets for better organization of coins, cash, and receipts, ensuring that everything you collect has a safe and secure place
- Smart Storage & Quick Access: Designed with 8 multi-functional compartments, the right side includes a guest receipt pad, while the left has a money pocket, ticket pocket, and credit card slot. Two small clear pockets store bills, receipts, and other visible items. A stitched pen loop ensures you always have your favorite pen ready
- High-quality & Easy to Clean: Crafted from high-quality PU leather with heavy-duty stitching, this server book is built to last. It resists tears, scratches, and its waterproof surface makes cleaning easy with just a damp cloth or a non-chlorine sanitizer
- Perfect Fit for Your Apron: Measuring 5” x 8”, this compact organizer is slightly smaller than other models, making it ideal for bending or sitting while carrying in your server apron. It holds everything a waitress needs—a place for everything
- What's Included: This server organizer comes with multiple open and zippered pockets to store money, receipts, tips, etc. Clear sleeves are perfect for keeping menus or special lists while serving. Available in a variety of colors, allowing you to express yourself even when in uniform
2. Classify workloads
Separate stateless web applications, general-purpose VMs, databases, legacy systems, GPU and AI workloads, VDI, disaster-recovery replicas, development and test environments, remote offices, regulated workloads, and Kubernetes-native applications. Migration risk varies sharply between these categories.
3. Inventory ecosystem dependencies
Document backup integrations, replication, network virtualization, storage policies, hardware compatibility, monitoring, infrastructure-as-code, identity, security controls, automation scripts, and vendor certification. A replacement platform is only viable if the surrounding operating model works.
4. Test operational maturity
Ask whether the team can operate KVM or Hyper-V, distributed storage, software-defined networking, Linux-based management planes, Kubernetes, and new monitoring and disaster-recovery tools. A low license cost can be overwhelmed by additional staff or consulting requirements.
5. Time the decision around contracts
The answer changes depending on whether the organization is before renewal, locked into a multi-year subscription, holding unused perpetual licenses, operating through a hosted provider, approaching a hardware refresh, or undergoing a merger or data-center consolidation.
Recommended Free Tools
The risks Broadcom still has to manage
- Large-account churn: The retained enterprise base may be valuable, but a major customer migration can remove a significant contract.
- Migration momentum: Once teams build expertise on another platform, returning to VMware becomes less likely.
- VCF execution: VCF must deliver enough private-cloud and AI value to justify broader bundles.
- Customer distrust: Revenue quality and customer satisfaction are separate outcomes.
- Competitor pricing: Alternatives may raise prices once migration demand increases.
- Delayed migrations: A customer can intend to leave for years before completing the move.
- Regulatory and partner scrutiny: Channel and licensing changes can create additional commercial constraints.
The bottom line for investors and IT buyers
Broadcom may be improving VMware’s revenue quality and margins while weakening its broad installed-base position. The company appears to be trading reach and product choice for recurring subscriptions, larger contracts, lower go-to-market complexity, and a more focused private-cloud platform.
That strategy can work if VCF retains high-value enterprises and expands into private-cloud, Kubernetes, and AI infrastructure faster than customers migrate away. It can fail if pricing pressure accelerates migration, alternatives mature, and VCF cannot replace the value of VMware’s former breadth.
For customers, the right question is not simply whether VMware is expensive or whether an alternative has a lower license price. It is whether the cost and risk of leaving are lower than the cost of staying—and whether the organization wants one strategic platform or a deliberately diversified environment.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
