It has been over a year since Broadcom finalized its $61 billion acquisition of VMware, and the aftershocks are still rippling across the IT landscape. Once the gold standard for enterprise virtualization, VMware is now at the center of a mass exodus. Customers are scrambling for VMware alternatives or reluctantly accepting Broadcom’s new rules.
Between steep price hikes, mandatory long-term contracts, and a shrinking partner ecosystem, VMware customers face tough choices. Some are doubling down and paying up, while others are plotting their escape.
Despite an unhappy VMware customer base, Broadcom is thriving. In its most recent earnings, the company posted record revenues of $51.6 billion, with $2.7 billion coming from software sales. Broadcom is betting that, despite rising costs, enterprises will still choose VMware over competing solutions.
However, that gamble is far from certain, with mounting competition from alternative hypervisors, open-source platforms, and public-cloud specific solutions.
For enterprises navigating this uncertainty, the challenge isn’t just finding a replacement for VMware. IT shops of all sizes see Broadcom’s actions as an opportunity to rethink their approach to virtualization, cloud strategy, and IT modernization.
The Growing Demand for VMware Alternatives
For many VMware customers, the shift isn’t just about cost — it’s about risk. Broadcom’s moves over the past year have raised concerns among IT leaders that they may soon face fewer choices and diminishing support.
Recent high-profile migrations and analyst recommendations highlight the growing demand for alternatives:
- Rackspace is testing a migration of 3,000 VMs away from VMware to explore whether an alternative private cloud solution can replace it.
- Beeks Group has begun moving more than 20,000 virtual machines away from VMware, citing a tenfold increase in its VMware license renewal costs as a key motivator.
- Gartner warns that migration won’t be easy—or cheap—but it may be the only viable move for organizations wary of long-term uncertainty.
These are not isolated cases. Search interest in “VMware alternatives” has surged, and analyst firms are fielding more inquiries from businesses evaluating migration strategies.
Recent urveys from Civo and CloudBold indicate that over half of VMware customers are actively exploring alternative solutions. The biggest drivers are rising costs, restrictive licensing, and the fear of vendor lock-in under Broadcom’s control.
However, moving away from VMware is no simple task. Enterprises must weigh migration complexity, integration challenges, and the long-term viability of their chosen alternative. The decision isn’t just about cost savings — it’s about aligning IT strategy with the future of hybrid cloud, containerization, and AI-driven workloads.
Top Alternatives to VMware
Not every VMware customer needs to migrate, and those satisfied with Broadcom’s platform may opt to stay. However, for organizations exploring alternatives, several strong contenders offer unique advantages:
- Public Cloud Providers: CSPs like AWS, Microsoft Azure, and Google Cloud all offer scalability and automation but come with vendor lock-in risks and migration complexity. They are best suited for organizations prioritizing cloud-native modernization over traditional virtualization.
- Microsoft Hyper-V & Azure Stack HCI: These are ideal for businesses already invested in the Microsoft ecosystem. However, Hyper-V’s feature set does not fully match VMware’s, and Azure Stack HCI’s hardware requirements may be a limiting factor.
- Red Hat OpenShift Virtualization: Appeals to organizations embracing containers and Kubernetes. While powerful, the learning curve and migration complexity may deter traditional virtualization users.
- Nutanix Cloud Infrastructure: The closest direct alternative to VMware, Nutanix provides a salutation based on a hyperconverged architecture that simplifies migration and hybrid-cloud operations. Its support for both traditional and modern IT architectures, along with deep collaborations with OEMs like Dell Technologies, make it a preferred choice for enterprises seeking a smooth transition and future-proof investment.
Unlike past IT disruptions, where a single dominant player emerged, this transition may lead to a more diversified market, with different solutions catering to specific business needs.
Analyst’s Take
VMware dominated enterprise virtualization for years, deeply embedding itself into IT operations. While hybrid cloud, containerization, and AI-driven workloads had already begun to challenge VMware’s stronghold, inertia and familiarity kept enterprises loyal.
Now, financial and operational uncertainty is forcing a shift. Organizations are no longer just considering alternatives—they’re actively adopting them.
This is not merely a reaction to cost increases but a fundamental change in enterprise IT priorities. Broadcom’s strategy has accelerated an existing trend: the growing emphasis on strategic flexibility and multi-cloud readiness.
For IT leaders, remaining on VMware without reassessment carries significant risk. Broadcom has made it clear that revenue optimization takes precedence over customer satisfaction. If this trend continues, enterprises that fail to develop an exit strategy may be locked into an increasingly costly and restrictive environment.
That said, enterprises have more options than ever before. Organizations must carefully evaluate their next steps, whether moving to the public cloud, adopting a hybrid model, transitioning to a new hypervisor, or staying with VMware.
This shift is already creating winners. Nutanix, Microsoft Hyper-V, Azure Stack HCI, and Red Hat OpenShift Virtualization are emerging as viable competitors. Each of these offer distinct advantages based on business needs and strategic direction, with Nutanix leading the pack.
The time to act is now. Enterprises that proactively navigate this transition will mitigate the uncertainties of VMware’s new ownership and position themselves for long-term success. The primary job of any IT organization, after all, is minimizing risk while providing the infrastructure for digital transformation.
Disclosure: Steve McDowell is an industry analyst, and NAND Research is an industry analyst firm, that engages in, or has engaged in, research, analysis and advisory services with many technology companies; the author has provided paid services to every company mentioned in this article — except for AWS, Gartner, Rackspace, and the Beeks Group — in the past and may again in the future. No company mentioned was involved in the writing of this article. Mr. McDowell does not hold any equity positions with any company mentioned.
