VMware, now under Broadcom ownership, is facing significant customer backlash primarily centered on aggressive licensing changes and substantial cost increases. Reports indicate that management decisions regarding renewal pricing have surprised long-time users, leading to frustration and immediate planning for infrastructure migration away from the platform. This shift in commercial strategy is intensifying scrutiny over the long-term viability of existing perpetual licenses.
The operational reality for some customers involves high-pressure tactics, including threats of service outages over lapsed support contracts, forcing reluctant subscription purchases. Concurrently, the broader configuration management ecosystem is reflecting this uncertainty, as ownership changes across major tools prompt IT professionals to seek enduringly free or open-source alternatives to avoid future gatekeeping.
Competitors are actively capitalizing on this market instability. HPE is promoting its Morpheus stack within GreenLake as a unified enterprise alternative, integrating networking solutions for modern AI connectivity needs. This strategic positioning directly challenges VMware’s traditional dominance in the private cloud space.
Furthermore, open-source solutions are emerging as viable escape routes. Proxmox has released a stable Datacenter Manager, presenting itself as a more robust, software-defined datacenter contender capable of supporting private cloud environments, signaling a growing trend toward decentralized, non-proprietary infrastructure.
Last updated February 7, 2026