VMware is shifting back toward streamlined, lower-end virtualization products with the introduction of vSphere Express, signaling a possible attempt by Broadcom to retain smaller businesses after focusing heavily on enterprise customers. The move follows a reduced channel-partner network, a more expensive and condensed product lineup, and growing signs that customers of various sizes are considering alternatives to VMware.
A renewed focus on smaller businesses
Returning to simpler, lower-end virtualization products represents a change in direction for VMware, which has focused primarily on enterprise-scale customers since Broadcom acquired the company. The shift is also reflected in Broadcom’s decision to work with fewer channel partners, consolidate its products into fewer and more expensive SKUs, and cancel plans to sell directly to its largest customers.
Although VMware has been financially successful under Broadcom, vSphere Express suggests that Broadcom may be concerned about losing smaller organizations. More broadly, the changes appear to be prompting customers of different sizes to examine competing virtualization platforms.
In September, VCF chief product officer Paul Turner told The Register that Broadcom had introduced sales incentives to encourage teams to sell VMware Cloud Foundation, or VCF, previewing what would become vSphere Express. He said VMware was “too focused on VCF.”
Nick Watson, chief engineer at UK-based technology advisory firm C4C Group, told TechTarget: “My interpretation is that Express exists because customers looked at VCF, crunched the numbers, and started packing. This is Broadcom putting the doors back in the building.”
Migration costs could keep some customers on VMware
Migrating away from VMware can be costly and time-consuming, particularly for small and medium-sized businesses. For organizations that cannot run a migration alongside other projects or have limited resources, vSphere Express may offer a simpler alternative to switching virtualization platforms.
However, some small businesses will be much harder to win back, including the thousands that have already moved to VMware’s rivals and those whose preferred resellers are no longer affiliated with VMware.
“Broadcom has lost all credibility. No, thank you. We have two more locations to migrate from VMware and this nightmare is over. We will not be playing these games,” a Reddit user said in response to details about vSphere Express shared last week.
Speaking with Ars Technica in September, Dean Colpitts, CTO of Members IT Group, a Canadian managed services provider and former VMware partner, said the transition to new lower-end virtualization products might be easy. However, Broadcom had “already demonstrated that both customers and partners cannot trust it.”
Source: arstechnica.com
