Broadcom’s Price Hike: Impact on VMware Users

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VMware customers across Europe are facing massive price increases of up to 1,500% imposed by Broadcom following its acquisition of the virtualization software giant, with some companies now confronting the prospect of zero profitability, according to a damning new report.

Sanchit Vir Gogia, chief analyst at Greyhound Research, said Europe’s assertive stance on digital market fairness positions Broadcom as a prime candidate for formal antitrust scrutiny. “The growing visibility of licensing-related friction has broadened regulatory interest beyond technical compliance towards structural market behaviors,” he explained.

“While alternatives to VMware exist, transitioning away is neither easy nor inexpensive,” Gogia said. “Options like open-source hypervisors or cloud-native stacks promise long-term independence but demand significant interim investment in skills, tooling, and customer change management.”

Broadcom’s aggressive licensing realignment may secure short-term revenue gains, but risks long-term erosion of the strategic value from its VMware acquisition. “If customer attrition and compliance overheads accelerate, the very basis for acquisition ROI could be compromised,” Gogia warned.

As quoted in NetworkWorld.com, in an article authored by Gyana Swain published on May 23, 2025.

Beyond the Media Quote: Our View, In Full

Pressed for time? You can focus solely on the Greyhound Flashpoints that follow. Each one distills the full analysis into a sharp, executive-ready takeaway — combining our official Standpoint, validated through Pulse data from ongoing CXO trackers, and grounded in Fieldnotes from real-world advisory engagements.

EU Watchdogs and Broadcom: Will Regulatory Firepower Translate to Formal Action?

Greyhound Flashpoint – Europe’s assertive posture on digital market fairness positions Broadcom as a likely candidate for formal antitrust scrutiny. According to the Greyhound CIO Pulse 2025, a majority of enterprise technology leaders now consider vendor-induced lock-in a board-level concern. The growing visibility of licensing-related friction has broadened regulatory interest beyond technical compliance—towards structural market behaviours. If the Commission escalates, this could serve as a watershed for how enterprise software firms calibrate post-acquisition licensing models.

Greyhound Standpoint – According to Greyhound Research, Broadcom is now testing the boundaries of regulatory patience in Europe. While vendor rationalisation and licensing evolution are not uncommon following acquisitions, the velocity and scale of changes have triggered unease among both enterprises and policymakers. Should formal EU action follow, it would set a precedent that software vendors must pair business model agility with governance responsibility. This moment could redefine how future enterprise acquisitions are evaluated—not just by investors, but by regulators.

Greyhound Pulse – Greyhound CIO Pulse 2025 reveals that a substantial share of enterprise leaders are actively tracking regulatory developments tied to software licensing changes post-acquisition. Many cite increasing concern that abrupt shifts in licensing structures are compromising their procurement predictability and IT governance alignment. This unease is particularly strong in organisations subject to internal audit and compliance thresholds, where contract volatility introduces systemic risk.

Greyhound Fieldnote – Per a recent Greyhound Fieldnote, several enterprise CIOs have initiated internal licensing audits after changes to software entitlements disrupted their IT roadmap. These reviews uncovered dependencies that were previously considered stable but have now become subject to vendor discretion. Leadership teams are using these findings to reassess vendor concentration and are placing greater scrutiny on how future M&A activity could impact architectural and financial stability.

Beyond VMware: What Real Options Do European Cloud Providers Have?

Greyhound Flashpoint – While alternatives to VMware exist, transitioning away is neither easy nor inexpensive. Per Greyhound Infrastructure Pulse 2025, most European cloud providers anticipate meaningful operational disruption and financial outlay should they pivot to alternative virtualisation platforms. Options like open-source hypervisors or cloud-native stacks promise long-term independence—but demand significant interim investment in skills, tooling, and customer change management.

Greyhound Standpoint – According to Greyhound Research, European cloud providers face a strategic dilemma. While the desire to diversify away from any one platform is growing, the operational complexity of doing so at scale—without affecting customer SLAs or introducing security gaps—is non-trivial. The likely outcome over the next 12–24 months is hybridisation: providers will maintain partial legacy platform dependencies while gradually increasing investment in open infrastructure. This staged shift requires careful orchestration to avoid customer churn and reputational exposure.

Greyhound Pulse – Greyhound Infrastructure Pulse 2025 finds that a majority of cloud providers expect a transition away from proprietary virtualisation solutions to incur at least a 20% increase in short-term operating costs. These costs stem from both hard factors—like platform migration—and soft challenges, including staff reskilling and compatibility testing. Many providers now rank vendor neutrality as a top three criterion for future platform selection.

Greyhound Fieldnote – Per a recent Greyhound Fieldnote, engineering leaders overseeing cloud transformation initiatives have reported difficulty in maintaining consistent performance levels on new virtualisation platforms. In multiple cases, latency, tooling gaps, and learning curves slowed rollout timelines and created friction with internal stakeholders. Providers have responded by formalising dual-stack strategies—retaining existing infrastructure for legacy workloads while initiating parallel efforts on open alternatives. This measured approach helps balance risk with long-term flexibility.

Broadcom’s ROI Dilemma: Is Licensing Overreach Undermining the Deal?

Greyhound Flashpoint – Broadcom’s aggressive licensing realignment may secure short-term gains but risks long-term erosion of strategic value from the VMware acquisition. According to the Greyhound CIO Pulse 2025, enterprise trust in VMware’s roadmap has weakened, with many now reassessing its relevance to future transformation agendas. If customer attrition and compliance overheads accelerate, the very basis for acquisition ROI could be compromised.

Greyhound Standpoint – According to Greyhound Research, Broadcom’s strategy reflects a classical asset consolidation approach—maximising portfolio monetisation quickly post-acquisition. However, such tactics, when applied to software ecosystems, often neglect the intangible currency of customer goodwill and architectural trust. Enterprises are increasingly sensitive to changes that disrupt their IT continuity or introduce budget uncertainty. Unless Broadcom rebalances its approach—offering clearer licensing continuity and consultative engagement—it risks a reversal in market momentum and long-term partner credibility.

Greyhound Pulse – The Greyhound CIO Pulse 2025 study shows that a growing number of enterprise buyers are actively reviewing their dependency on recently acquired software platforms. Licensing complexity and loss of price predictability have become common triggers for portfolio reviews and contingency planning. This signals a larger shift: vendor behaviour is now a leading factor in shaping long-term IT strategy—on par with product capabilities.

Greyhound Fieldnote – Per a recent Greyhound Fieldnote, enterprise IT leaders overseeing multi-year virtualisation programmes have had to initiate unplanned budget reviews after licensing structures changed mid-contract. In some instances, workload expansion plans were halted or deferred pending clarity. These events have elevated the importance of exit planning and vendor redundancy at the board level—shifting the narrative from optimisation to resilience.

Broadcom vs. Oracle and IBM: Is This Just Another Playbook?

Greyhound Flashpoint – While licensing resets are common post-acquisition, Broadcom’s approach has raised eyebrows for its speed and opacity. Compared to legacy transitions seen in past enterprise software mergers, the shift here has been more abrupt—leaving many buyers and partners grappling with uncertainty. According to Greyhound Vendor Pulse 2025, a significant segment of enterprise stakeholders now regard Broadcom’s post-acquisition changes as among the most disruptive in recent memory.

Greyhound Standpoint – According to Greyhound Research, what distinguishes Broadcom’s approach from peers like Oracle and IBM is not just the introduction of new terms—but the pace and scope of enforcement. Many enterprises were unprepared for immediate contractual restructuring, discontinued features, or partner lockouts. Whereas other software vendors have typically offered extended transition windows and migration tooling, Broadcom’s model has prioritised rapid monetisation. This shift may offer short-term returns, but it risks long-term fragmentation across its customer base and partner ecosystem.

Greyhound Pulse – Per the Greyhound Vendor Pulse 2025, enterprise IT buyers now cite the need for “licensing transparency and continuity guarantees” as critical factors in future software procurement. Many reflect on past acquisitions where gradual roadmap evolution helped preserve trust. In contrast, the current environment has seen increased procurement risk and longer stakeholder sign-off cycles—particularly in highly regulated and budget-sensitive environments.

Greyhound Fieldnote – Per a recent Greyhound Fieldnote, organisations impacted by sudden licensing updates have described the experience as operationally jarring. CIOs noted gaps in documentation, partner communication, and support continuity. In response, many are now embedding acquisition tracking and post-deal risk assessment into their platform governance models. This reflects a growing maturity in how enterprises plan for—and protect against—vendor-initiated architecture disruptions.

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