In 2023, Broadcom acquired VMware. One of the most common enterprise virtualisation applications, VMware is used to host servers and other network infrastructure. While Broadcom focuses mainly on semiconductors, cybersecurity, and infrastructure, the acquisition of VMware has brought new subscription-based requirements for businesses. In this article, we’ll look at the changes you can expect from VMware as a customer.
What Is Broadcom?
Broadcom has a long history in the tech industry. The company’s origins can be traced back to the 1960s when it created innovative fiber optic transmitters and receivers for data communications. Later, Broadcom built products surrounding infrastructure. In 2025, its focus is on artificial intelligence solutions.
VMware is a part of enterprise infrastructure, so it’s a complement to what Broadcom already offers. For any acquisition, changes in ownership often mean changes in the way customers interact with solutions or pay for their products. Broadcom uses a subscription-tier pricing model, so businesses will need to adapt to this new payment structure.
What Is VMware?
VMware has been a virtualisation service provider since 1998. The company was acquired in 2007 by EMC. Dell later acquired EMC, and therefore VMware. In 2023, Broadcom acquired VMware.
Businesses have several virtualisation options, but VMware is known for being an enterprise solution. Hypervisor is VMware’s most popular product; however, VMware also has server software, cloud management software, and desktop virtualisation software. VMware’s vSphere is a software-managed storage solution that’s also popular with enterprises.
Broadcom Acquisition of VMware
In May 2022, Broadcom began its acquisition of VMware. Broadcom had to go through an extensive review to ensure it did not create an extreme limitation in competition, and the review ensured that VMware would run on third-party hardware and not only Broadcom hardware. The deal was finalized in November 2023.
Broadcom sold VMware’s end-user computing (EUC) department for $4 billion. The EUC controlled VMware’s VDI product Horizon and the Workspace ONE management solution. As of the EUC selloff, Workspace ONE and Horizon are sold separately and independently of any VMware products.
Impact on the Tech Industry
The increase in fees to host VMware is one of the biggest impacts on technology companies. Hosting companies and data centers must pay higher prices to offer virtualised environments to their customers. Increased costs will trickle down to customers, costing businesses more in infrastructure.
VMware has a few enterprise competitors, which might be a good option for businesses if they decide to migrate to a new solution. For example, Microsoft offers Hyper-V; VirtualBox is beneficial for individual users; Citrix XenServer offers virtualisation for offices; and Red Hat has its own Linux solution. The Red Hat solution also works with Microsoft operating systems.
Implications for Businesses and Consumers
The biggest impact on VMware customers is the change in costs. VMware Workstation Pro and VMware Fusion Pro are now offered for free personal use, but enterprise solutions are subscription-based. Instead of paying a flat fee, some businesses are reporting over 400% in price increases.
Businesses must review their current infrastructure and ensure that they subscribe to the right plan to continue service. Consumers can use the free versions of VMware products with Workstation Pro. Workstation Pro is a competitor of other free solutions like Oracle VirtualBox. If businesses choose to migrate, they will also need to replace vSphere for storage.
Conclusion
Since being acquired by Broadcom, VMware has changed its pricing model. Whether businesses choose to use VMware or migrate to a new solution, Pure Storage is here to support our customers and their infrastructure through solutions like our vSphere plugin and vVols integration.
