Over the past year, I have had more challenging conversations with IT leaders than at any time in the past decade, and they all begin the same way:
Our VMware renewal has just arrived…Then there’s a pause. Then usually a number. And then disbelief.
Since Broadcom acquired VMware, licensing has changed significantly. The shift affects not only pricing but the entire commercial model. Predictable, incremental renewals have been replaced by subscription restructuring, bundled products, minimum commitments, and, in many cases, renewal costs that are several times higher than before.
This isn’t just sticker shock. It’s an architectural shock.
For years, organisations relied on VMware for both technical and commercial stability. This allowed for predictable budgeting, gradual growth, and long-term operations. Now, many businesses are being forced to make unplanned decisions. Which is the real issue.
The Hidden Problem Isn’t Cost – It’s Loss of Control
Rising costs are challenging but manageable, as businesses routinely adjust their budgets. The greater challenge is the loss of flexibility.
- Products bundled into subscriptions you don’t need
- Feature tiers are locked behind higher licence levels
- Per-core minimums that dramatically increase costs
- Forced upgrades or re-architecture to stay compliant
- No realistic option to scale gradually
Many organisations now realise they have not only adopted a hypervisor but have also become dependent on it. When that dependency changes suddenly, the infrastructure roadmap must also adapt.
The Conversations I’m Hearing
Across manufacturing, finance, education and healthcare, the pattern remains consistent.
“We’re paying for features we never use.”
“We’re being asked to redesign simply to renew.”
“Our environment is stable — why are we being urged to change?”
“We can’t justify this expenditure to the board.”
These aren’t complaints about technology. VMware still works well technically. This is a matter of commercial alignment. The product has evolved, but not in a way that meets the needs of many existing customers.
The Moment Organisations Start Looking Elsewhere
The question has shifted from:
Should we modernise?
to:
Should we stay?
This represents a significant shift in mindset. For the first time in many years, companies are seriously considering alternatives, not as experiments but as viable strategic options. One name keeps appearing in those discussions:
Proxmox
This is not due to trends, but because it addresses a specific need: regaining control of infrastructure without sacrificing capability.
In the next article, we will examine the true business impact of maintaining the current approach and why inaction may now be the riskiest decision.