Broadcom, VMware, and What Comes Next: Top Questions CIOs Are Asking in 2026

Broadcom’s acquisition of VMware continues to create uncertainty across the industry. From licensing shifts to changing support expectations to cost concerns, many organizations are reassessing their long-term reliance on VMware and exploring what a modernization or cloud migration strategy might look like.

Across dozens of conversations with CIOs, architects, and infrastructure leaders, a few questions consistently rise to the top. We addressed five of them in a recent thought leadership piece that ran on vmblog, but those represent only a starting point.

Below are common questions organizations are asking, and clear guidance to help leaders make informed decisions.

1. What changed in Broadcom VMware’s licensing model?

Broadcom’s shift to a subscription-only model is one of the most significant changes in VMware’s history. Traditional perpetual licenses and many standalone SKUs have been retired in favor of larger, bundled offerings that simplify the product portfolio.

These structural changes are introducing challenges such as:

• Higher, less predictable costs as renewal pricing adjusts to new bundles
• Reduced flexibility to license-specific VMware components based on actual usage
• Discontinued or modified entitlements, making it harder to map old contracts to new offerings
• More complex commercial terms, requiring deeper review of contract fine print

What used to be a straightforward annual renewal conversation now requires cost modeling, contract analysis, and forward-looking strategy.

2. Will my support experience stay the same?

Support is still available, but the landscape has changed. Broadcom’s restructuring has:

• Shifted more responsibility to partners
• Consolidated support tiers
• Raised questions around long-term continuity for older VMware versions
• Reduced clarity around future updates and entitlements

Many customers report longer paths to resolution, new escalation processes, and uncertainty about the roadmap for key Broadcom VMware components.

In short: Support still exists, but it doesn’t look or feel the same.

3. How do we accurately compare costs between Broadcom VMware and cloud options?

A true cost comparison requires more than licensing math. It should capture the full operating model and the “hidden” cost drivers on both sides.

Here’s what to assess when building an accurate total cost of ownership (TCO) evaluation:

• Complete licensing assessment inclusive of current VMware, OS, and database landscapes
• Subscription and infrastructure vs. cloud native consumption-based pricing without VMware (and how usage fluctuates)
• Networking, storage, and egress costs that can materially change the cloud bill
• Disaster recovery/high availability architecture requirements (single region vs. multi-AZ vs. multi-region) and the cost and complexity of testing
• Cost offsets from retiring aging infrastructure (hardware refresh, data center overhead, tools)
• Efficiency gains from right-sizing and modernization (fewer resources, less management overhead)
• Technical debt (legacy OS and applications) and migration hurdles
• Availability of funded hyperscaler programs to reduce cloud migration strategy and run costs

Many organizations find that once these variables are included, a cloud-based model can be a better VMware alternative since it offers better long-term stability and cost predictability, especially when paired with modernization and governance.

A multi-cloud approach can reduce risk and vendor lock-in even further.

4. How complex is a migration off Broadcom VMware?

The honest answer: It depends on your environment. Migration complexity varies based on workload types and dependencies, performance and latency requirements, regulatory and cost constraints, and operating model maturity.

Regardless, with the right planning, it can be executed with minimal disruption.

Key questions to consider in a VMware alternative such as migration include:

• What tools are available to automate workload migration?
• Can you stagger moves to a hyperscaler VMware solution first and cloud native solution later?
• How long will the process take, given the application landscape and related dependencies?
• What downtime windows are required?
• Which applications require replatforming vs. refactoring?
• In what order should workloads be moved?
• How will you design an organizational change management strategy to ensure the proper stakeholders are engaged and informed?

Migrations used to take years, but with modern technology and the right partner, they can now be completed in months with minimal downtime and minimal risk.

5. Do we have to migrate everything at once?

No, and most organizations don’t. A phased approach is the best practice, enabling teams to reduce risk and maintain continuity, which allows for seamless failback if any major issues are encountered. Common first steps include:

• Migrating nonproduction workloads
• Moving disaster recovery, test, or seasonal environments
• Transitioning workloads tied to upcoming hardware refreshes
• Starting with apps already aligned to cloud-native services

Hybrid environments are not only acceptable; they are expected during transition. A step-by-step approach avoids the “big bang” risk that most CIOs want to avoid.

6. How do I mitigate costs during the migration?

This is one of the most common concerns, and it’s a real one.

During transitions, many customers temporarily pay for existing VMware infrastructure and cloud landing zones and migrated workloads.

Cost mitigation strategies during this time can include:

• Phased migration to avoid paying for two environments longer than needed
• License and cost optimization programs
• Right-sizing workloads before migrating to avoid inefficient spend
• Hyperscaler incentives (Amazon Web Services, Microsoft Azure, Oracle Cloud Infrastructure, and Google Cloud Platform all offer migration credits and funding)
• Minimizing parallel run timelines through strong cutover planning 

Managing parallel environments is often unavoidable, but smart planning minimizes overlap. When used strategically with a reliable partner, these strategies can materially reduce the cost of a Broadcom VMware exit. Some organizations have reported savings reaching the high double digits.

7. What are the core benefits of migrating?

While organizations have several viable VMware alternatives for the future of their infrastructure, migrating workloads to a modern cloud-based or hybrid architecture offers a strategic path forward. This transition unlocks a range of tangible business outcomes, including:

• Cost optimization and license efficiency – Reduce over-licensing and unnecessary renewals
• Greater agility – Accelerate cloud adoption and innovation
• Improved visibility and governance – Manage hybrid and multi-cloud environments with consistency
• Risk reduction – Reduce exposure to pricing and support uncertainty
• Vendor independence – Move toward open, interoperable infrastructure platforms
• Security and compliance assurance – Ensure enterprise-grade protection and regulatory compliance across all environments

For many organizations, the long‑term value outweighs transitional complexity.

8. What opportunities become possible after a VMware-to-cloud transition?

Many customers initially migrate to reduce risk and stabilize cost. But long-term value often comes from a cloud migration strategy that focuses on what happens after the move. Organizations gain:

• Reduced CAPEX for Data Center infrastructure
• A more flexible monthly consumption model
• A cloud‑first operating model
• Ability to modernize without legacy Broadcom VMware constraints
• Access to advanced analytics, AI, and business automation capabilities
• More flexible disaster recovery and resilience options
• Seamless integration with Software as a Service (SaaS) and cloud‑native services

 

A Strategic Turning Point

Broadcom VMware evolution has forced organizations to reassess longstanding assumptions about cost, support, and long-term platform stability. But this moment is not only about managing disruption; it’s an opportunity to modernize on your terms.

Whether you choose to remain on Broadcom VMware, reduce your footprint, or transition workloads to a modern cloud model, the most important step is moving from reactive decisions to a clear, data-driven strategy. Organizations that evaluate their options now, model long-term implications, and design a flexible exit plan will be better positioned to control costs, strengthen resilience, and build the foundation for cloud-ready infrastructure.