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Broadcom Licensing Policy Change for VMware Products - Proposed Client Action (Q1.2024)

GEM System regularly devotes time to these changes, so that the possible understanding of such key changes is as correct as possible and the possibilities of responding to them are clearer.

Regarding the price policy changes in this case, we at GEM System believe that we have searched very intensively for you, but we can safely say that only guesses, guesses and predictions are known so far. Even though this information comes from reputable sources, it is by no means exact from the point of view of the entire change. Regarding pricing after the change at the end of 2023, it is not possible to determine the future strategy.

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Broadcom Licensing Policy Change for VMware Products - Proposed Client Action (Q1.2024)

GEM System regularly devotes time to these changes, so that the possible understanding of such key changes is as correct as possible and the possibilities of responding to them are clearer.

Regarding the price policy changes in this case, we at GEM System believe that we have searched very intensively for you, but we can safely say that only guesses, guesses and predictions are known so far. Even though this information comes from reputable sources, it is by no means exact from the point of view of the entire change. Regarding pricing after the change at the end of 2023, it is not possible to determine the future strategy.

The main thing that we advise everyone regarding the price policy changes is that companies should try not to jump on the wave of panic that is arising in connection with the change in the licensing model and the likely increase in the price of VMware products. However, every coin has two sides…

We are building the future of IT with Kubernetes - solutions built on virtualization thanks to containerization with Kubernetes solutions (K8s)



If you are in the position of an operations manager and are faced with the decision of whether to make such major changes as a virtualization strategy, there are several necessary tasks on your end - what you need to do and know:

- Inventory of licenses (purchased and actually used), this is a great input for price negotiations, either with Broadcom or a possible competing solution.

- Contact your existing license vendor and ask for subscription pricing.

- Ask yourself whether you are missing something in the current solution, or whether a competing solution would bring you any major innovations or opportunities.

- Can I afford opensource with support / without support, why should I possibly prefer a commercial product?

- Will I be able to handle the service with the current staffing? And what capacities will be necessary for the transition phase, incl. entire migration process? In cooperation with experts, you can know a qualified estimate of the required capacities and corresponding prices.

- How demanding will the staff training be (financially and time-wise)?

- Have you resolved the system dependencies? Or it would be very annoying to find out after deploying a new virtualization platform that you don't have a compatible backup system.

- Don't forget at least an elementary risk analysis, during which you need to evaluate the typically potential risks of migration, the very operation of the new platform, and don't forget to "tap" the new vendor as part of the courtship.


If you perform these actions and answer the above questions, then you will have a fairly solid base on which to model and analyze different situations and how to handle them.

It is necessary to see the opportunity in the whole matter and not to hastily jump on the wave of one universal solution.

In the end, you may come to the conclusion that you will push through the change for a completely different and far more pragmatic reason than a change in pricing policy.

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