Nearly three years after Broadcom took over VMware, a lot of companies still haven’t figured out what to do about it. If that sounds familiar, you’re not behind — you’re in good company. But a real deadline is now on the calendar, and it’s close enough that every executive team, not just IT, needs to be part of this conversation.
A Quick Recap: Why This Became a Boardroom Issue
VMware software runs quietly behind the scenes of most companies’ technology, powering the virtual servers that everything else depends on. When Broadcom bought VMware in late 2023, it rewrote the rules almost overnight: the old pay-once licenses disappeared, and everyone was moved onto mandatory subscriptions bundled with features many companies never asked for.
The price tag changed just as dramatically. Many businesses have reported renewal quotes anywhere from 8 to 15 times what they were paying before. AT&T has publicly said it was quoted an increase of over 1,000%. New contracts also lock companies in for three-year terms, with real financial penalties for missing a renewal deadline.
It’s no surprise that well-known names — including Tesco, T-Mobile, Allstate, and Western Union — have already moved some or all of their operations off VMware. Industry analysts expect a third of VMware’s customers to shift away within the next few years.
So Why Are So Many Companies Still Stuck?
If the costs are this painful, why hasn’t everyone already left? Because the software in question isn’t a nice-to-have app — it’s the foundation the rest of the technology stack sits on. Ripping it out and replacing it touches nearly every application, backup system, and security process a company relies on.
Done carelessly, a rushed switch can create more risk and complexity than it solves. Done well, it takes real planning: understanding what you actually have today, what a new environment should look like, and how to move without disrupting the business. That planning step is exactly where most companies get stuck — not because good alternatives don’t exist, but because few internal teams have the bandwidth or specialized experience to map out the move with confidence.
The Squeeze Is Hardest on the Mid-Market
Large enterprises have the leverage, legal teams, and dedicated procurement staff to push back on Broadcom, and they still felt the pain. Mid-market businesses generally have none of that cushion, which is why this shakeup has hit them especially hard.
Broadcom’s new bundles come with minimum purchase requirements that don’t scale down for smaller environments, so a mid-market company can end up paying for far more capacity and features than it will ever use — a fixed cost that a larger company barely notices but that can consume a meaningful share of a mid-market IT budget. Add three-year contract terms and steep renewal penalties, and many mid-market leaders are being asked to make an outsized financial commitment with no real negotiating power and no in-house team dedicated to evaluating the alternatives. The result is real budget strain, delayed investment in other priorities, and, for some companies, a genuine threat to the bottom line — all for infrastructure that was supposed to be a stable, predictable cost.
Why October 2027 Changes the Timeline
Here’s what makes this year different: this is no longer just about cost, it’s about a hard deadline. Broadcom has set October 2027 as the point when support ends for the version of VMware still running in the vast majority of data centers today. After that date, security patches and vendor support become far more limited and expensive — a serious exposure for any company that depends on strong security and compliance.
October 2027 sounds far off, but a proper transition — whether that means renegotiating better terms with VMware or moving to a different platform — typically takes twelve to eighteen months to plan and execute responsibly. Counting backward, companies that wait until 2027 to start are companies that will be forced into a rushed, costly decision instead of a smart one. The businesses in the best position a year from now are the ones starting the conversation today.
The Real Decision: Stay, Renegotiate, or Move On
Every company on an older VMware contract is really facing one question: does staying with VMware’s new pricing and terms make sense for our business, or is now the time to explore other options?
There’s a reasonable case for staying, especially for companies deeply invested in VMware’s ecosystem, where a well-negotiated renewal may be the lower-disruption path. There’s an equally reasonable case for leaving, especially for companies whose needs are simpler and whose budgets can’t absorb the new costs. Reliable alternatives exist and are proven in production today.
The wrong answer is no answer — letting the decision sit because it feels too complicated to start. That’s a solvable problem, and it doesn’t have to be solved alone.
Let Our Team Help You Get a Clear Answer
My Resource Partners offers a FREE VMware Migration Assessment, led by our highly credentialed solutions engineers. They’ll evaluate your current environment and contract terms, give you a straight, unbiased answer on whether VMware’s new offering still makes sense for your business, and — if a change makes more sense — help your team build a solid, realistic migration strategy from day one.
No pressure, no sales script. Just clarity, from people who do this for a living, while you still have time to choose your own path before October 2027.
Weigh Your Options While There’s Still Time
Schedule your free VMware Migration Assessment
The Bottom Line
The VMware shakeup is still playing out in budgets and boardrooms today, and the clock is now running. Whether the right move for your company is to stay, renegotiate, or migrate, the worst option is deciding under pressure at the last minute. Get a clear picture now, while there’s still time to choose well.
