Key points
- VMware is slowing major releases to 3 years and extending support lifecycles to ease upgrade pressure on enterprises.
- Broadcom’s costly licensing changes and forced bundling have pushed companies to explore alternatives like Microsoft Azure Stack HCI.
- Azure Stack HCI and other competitors are now viable for most workloads, but full migration from VMware is unlikely before 2026.
VMware is overhauling how it updates and supports its flagship hybrid cloud platform, VMware Cloud Foundation (VCF), in response to growing frustration from large corporate users. The tech giant, now owned by Broadcom, announced a shift to a slower 3-year release cycle for major VCF updates, up from the previous 2-year pace. It also increased the support window for VCF 9.0, the latest version, from 5 to 6 years, giving companies more time to plan upgrades. Minor updates, like 9.1 and 9.3, will now come every 9 months instead of every 6, offering more flexibility.
Industry experts warn that the changes signal broader struggles in enterprise IT. CIOs are pushing for platform decisions quickly due to Broadcom’s licensing rules, which increased costs by up to 500% and require customers to buy at least 72 cores per license, even if they don’t need them. The Dutch government recently sued VMware over an 85% price hike, forcing the company to grant extra migration time—a sign of the mounting legal and pricing backlash. "This is about managing the chaos," said Sanchit Vir Gogia, CEO of Greyhound Research. "Enterprises can’t afford to rush now because they’re facing vendor-enforced deadlines and higher bills."
The 3-year release cadence gives businesses multiple upgrade paths instead of being locked into major overhauls every 24 months. For example, VCF 9.0 will receive 27 months of support, while the final 9.3 version gets 45 months. "Large companies need 2.5–3 years to switch platforms," explained Tanvi Rai from Everest Group. She advised customers to finalize experiments with alternative solutions and secure deals by 2026, aiming for a gradual shift by mid-2027.
Despite the backlash, VCF 9.0 includes features that might help offset higher costs. The new version offers 40% better server efficiency through Advanced NVMe Memory Tiering and improved storage savings with vSAN Global Deduplication. However, these gains vary by industry. Companies in logistics and utilities, for instance, may struggle more due to fluctuating workloads, while sectors that optimize hardware and automation could see cost-neutral or even cost-saving benefits.
Enterprises are also testing alternatives to VMware, using competing platforms like Nutanix AHV, OpenShift Virtualization, and notably, Microsoft’s Azure Stack HCI—a hybrid cloud option that runs on Windows Server. Analysts say Azure Stack HCI and others have advanced to handle most basic IT tasks, including backups, disaster recovery, and GPU support. Still, full removal of VMware from major systems remains rare. "Around 70–80% of workloads could already move off VMware," Rai said. "But mission-critical apps will stick until late 2026, at least."
This approach—keeping VMware for vital tasks and using rivals for other needs—reflects a "pragmatic hedging strategy," said experts. For example, a company might run its financial systems on VCF 9.0 but shift new edge-computing projects to Azure Stack HCI. This split strategy helps control costs, explores new tools, and buys time against Broadcom’s aggressive pricing.
The changes may also indirectly benefit Microsoft Azure, which has pushed its own Microsoft Azure Stack HCI as a direct competitor. With VMware slowing updates, organizations see Windows Server and Azure platforms as stable options for renewal cycles. "The pressure is real," Gogia said. "VMware’s once-fast innovation isn’t enough to justify its costs anymore. Microsoft’s products are becoming a more attractive option for long-term planning."
As the IT market evolves, VMware’s slower pace highlights a shift from rapid, forced upgrades to a customer-focused model. While Windows-based companies capitalize on this, many enterprises in 2024 are accelerating evaluations of mixed-platform strategies. The focus is now on balancing cost, flexibility, and performance, with Microsoft’s ecosystem playing a central role in that equation.
Enterprises are being urged to stay proactive: finalize plans by 2025, start pilots in 2026, and aim for a steady transition. Those who hesitate risk being hit with short-term renewals or higher expenses under Broadcom’s licensing policies. For now, VMware’s push for stability has sparked a broader discussion about Microsoft alternatives and how quickly the hybrid cloud battlefield is changing.
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