{"id":6499,"date":"2024-07-15T16:57:20","date_gmt":"2024-07-15T21:57:20","guid":{"rendered":"https:\/\/www.stratospherenetworks.com\/blog\/?p=6499"},"modified":"2024-07-15T16:57:20","modified_gmt":"2024-07-15T21:57:20","slug":"webinar-recap-how-to-navigate-the-broadcom-vmware-aftermath","status":"publish","type":"post","link":"https:\/\/www.stratospherenetworks.com\/blog\/webinar-recap-how-to-navigate-the-broadcom-vmware-aftermath\/","title":{"rendered":"Webinar recap: How to navigate the Broadcom\/VMware aftermath"},"content":{"rendered":"

\"CloseBefore Broadcom acquired VMware<\/a>, a school with 50 physical CPUS and 1,080 actual CPU cores benefited from special discounts and paid $17,000 annually for VMware software maintenance. However, as the organization shared on Reddit, transitioning from VMware Enterprise Plus to VMware Cloud Foundation (VCF) following the Broadcom\/VMware deal changed that drastically.<\/p>\n

Licensing is now based on physical underlying server cores, and there is a 16-core minimum VMware license per physical CPU. The school\u2019s annual VMware costs skyrocketed by 2,224 percent to $378,000.<\/p>\n

That was one extreme example of the real-world impact of Broadcom\/VMware that was covered in a June 27 webinar co-hosted by Stratosphere Networks and Expedient<\/a>. During the presentation, Brent Meadows \u2013 vice president of advanced solution architecture at Expedient and a VMware Certified Design Expert (VCDX) with over 15 years of industry experience \u2013 offered guidance for businesses seeking direction in the aftermath of the acquisition.<\/p>\n

\u201cIt\u2019s a really big change event for a lot of organizations just because of the market share that VMware had across the board,\u201d Meadows said.<\/p>\n

For those who couldn\u2019t watch the webinar live, here\u2019s a recap of some essential information covered during the event. Please <\/strong>register here<\/strong><\/a> to view the recording for the complete learning experience. <\/strong><\/p>\n

The dynamics of the Broadcom\/VMware deal<\/h2>\n

Broadcom wanted to diversify by adding software components to their portfolio for the enterprise infrastructure side, Meadows explained. Now, Broadcom is molding VMware licensing in line with their vision. That involves transitioning from perpetual licensing to a subscription model.<\/p>\n

Previously, VMware clients bought software upfront, and the costs were purely associated with support. Now, you must re-purchase that software on an ongoing basis. That\u2019s one driver behind higher prices, Meadows said.<\/p>\n

As mentioned earlier, Broadcom has also adjusted licensing. Previously, it was based on memory core or CPU sockets; now, it\u2019s based on physical underlying server cores. Meadows noted that the 16-core minimum per CPU requirement has hit organizations with small computing environments hard.<\/p>\n

Additionally, Broadcom has consolidated from 168 different SKUs to just four bundles. On top of that, they terminated all partner agreements with VMware service providers and resellers and required reapplication for those roles, according to CRN<\/a>. Subsequently, there are now just 12 Pinnacle and 300 Premier partners in North America, Expedient notes.<\/p>\n

Expedient is at the Pinnacle level, the highest partnership tier. That means the provider has access to additional licensing models and discount tiers as well as dedicated product support departments. They also have direct access to engineering teams.<\/p>\n

Frequently asked questions about Broadcom\/VMware<\/h2>\n

It’s no surprise that business leaders have plenty of queries in the wake of the Broadcom\/VMware deal.<\/p>\n

\u201cThere are a lot of questions that are pretty common,\u201d Meadows said. \u201cThe first one is the big elephant in the room: How much are our costs going to go up?\u201d<\/p>\n

Other commonly asked questions include the following, according to Expedient.<\/p>\n