Breaking News: VMware's Price Increase Sends Shockwaves Through the IT Industry

In November 2023, wireless communications chip giant Broadcom completed its acquisition of virtualization software company VMware. The "marriage" of the multinational giants caused a stir in the global IT industry, as Broadcom announced that it was changing VMware's payment model from perpetual licenses to a subscription model.

After the license policy change, companies could face a price increase from 2 times to 20 times, or even higher.

This shift means that instead of making a one-time payment purchase, customers will need to renew their licenses annually. Failure to renew in a given year will not only result in the loss of the service, but may also result in the expiration of the license, and continued use will constitute piracy. The subscription payment model is similar to the VIP memberships of some video or music platforms, where annual subscription price adjustments are entirely at the discretion of the vendor. The shift to this payment model places complete control over changes in VMware product pricing in the hands of the vendors, introducing uncertainty into VMware's business strategies. Customers who previously purchased VMware products now face the risk of service interruption, creating a future fraught with variables.

Broadcom license model change triggers price volatility

Broadcom has made changes to the licensing model for one user. It changed from the previous per CPU slot billing to per CPU core billing, and changed the licensing model from a perpetual license to a subscription model. This change resulted in a spike in user fees, Previous Year - $124k /yr Renewal - $257k /yr. This triggered a strong reaction from users and confusion and frustration for many companies. Meanwhile, news about the skyrocketing prices of YouTube video titles caused a stir. There were reports of a 10x price increase for a YT video title. This drastic price volatility has created a great deal of uncertainty in the digital content and media industry, with users having to deal with potentially high fees.

VMware's price hike: unleashing a chain reaction in the IT industry

VMware's price hike has triggered a series of chain reactions that have impacted the entire ecological landscape of the IT industry.

First, for organizations already using VMware products, this sudden change meant an additional financial burden. Budget plans that were originally based on one-time purchases will need to be readjusted to accommodate annual subscription fees. This is a challenge for organizations that have tight control over their IT spending and could lead them to re-evaluate whether to continue with VMware products.

Second, for organizations not yet using VMware, this change will also have an impact on purchasing decisions. Due to the increased uncertainty about the price of VMware products, organizations will need to be more cautious when making purchasing decisions. They may start looking for alternatives or engage in tougher negotiations with VMware for more favorable pricing and terms.

Third, the entire virtualization and cloud computing industry will also be affected. As one of the industry leaders, the change in Broadcom VMware price increase strategy will affect the pricing mechanism of the entire market. Other competitors may use this opportunity to increase their marketing efforts to attract the customer base that originally belonged to VMware.

Seizing the opportunity: Vinchin Backup & Recovery offers a seamless V2V migration solution

As a result, users now must seize the opportunity to find alternatives to VMware products! This shift not only saves costs, but also smartly circumvents the trouble that VMware price increase strategy may bring. And in this arena of change, V2V migration technology plays a crucial role. Hurry up and jump on this wave of change and let V2V migration technology lead you to explore new IT solutions!

Vinchin Backup & Recovery's Virtual Machine Conversion Engine (VMCE) is carefully designed and optimized to ensure that your VM backups are efficiently migrated to the target platform. Whether migrating from VMware to Proxmox, Hyper-V, XenServer, etc., Vinchin makes it easy to .migrate VMs across 10+ virtual platforms.

Vinchin's automated processes and intelligent management maximize and simplify workflow. Whether it's data recovery, backup management or disaster recovery, Vinchin reliably supports you and keeps your data safe. Moving critical systems to a brand new virtual machine takes only a few minutes of configuration time. The following demonstrates the process of converting a VMware VM to a Proxmox VM in Vinchin Backup & Recovery.

1. Just select the backup of VMware VM > click Next

2.  Select the Proxmox host as the target host > click Next

3. Select Once-off Restore > click Next

4. Submit the job

When you choose Vinchin Backup & Recovery, you're not just choosing a powerful migration tool, you're choosing a trusted partner that provides comprehensive coverage and support for your IT infrastructure. We offer a free 60-day trial so you can experience the features in a real-world environment. If you need more information, please contact Vinchin directly or get in touch with one of our local partners. We are always ready to provide you with further help and answers.

Conclusion

VMware's shift to a subscription model under Broadcom's ownership sparks industry-wide repercussions. Organizations face financial strains and reevaluation of IT strategies. Amidst this, Vinchin Backup & Recovery offers a seamless V2V migration solution, empowering users to explore cost-effective alternatives and ensure data integrity.

V2V FAQs

Q1: Does Vinchin Backup & Recovery support migration of virtual machines between XCP-ng and Proxmox platforms?

A1: Yes, Vinchin supports users to migrate virtual machines between XCP-ng and Proxmox platforms. Whether it is from XCP-ng to Proxmox or from Proxmox to XCP-ng, Vinchin can effectively support you in the migration process. In addition, Vinchin also provides autonomous conversion functions for more than 10 other platforms, providing users with greater flexibility and choice.

Q2: How does Vinchin Backup & Recovery cope with unexpected situations such as network failure or data loss during cross-platform migration?

A2: Instant VM Restore in Vinchin Backup & Recovery can be used in V2V scenarios to re-run a damaged VM directly on another virtual platform in 15 seconds with initial backups, which makes the most of your IT environment resources to guarantee business continuity when needed.