Impact on users of VMC (VMware Cloud) on AWS

The acquisition’s impact is more pronounced for enterprises currently using VMware Cloud on AWS due to the shift in sales and support channels.

1. Disruption in support
   With AWS no longer reselling the service, there have been immediate concerns regarding the continuity of services and support for enterprises relying on VMware on AWS.

If you are one of them, you can no longer create, renew, upgrade, self-purchase, or manage subscriptions within the VMware Cloud Services portal. Only read-only subscription details related to VMware Cloud Foundation services will be displayed.

While new purchases have been halted, AWS has assured that current deployments will remain supported under the terms of their existing agreements. However, companies need to evaluate the lifecycle of their contracts and the associated support terms, paying close attention to how these changes might affect future service renewals or expansions.

Broadcom no longer supports the on-demand model. However, as with most cloud services, VMware Cloud on AWS was elastic. If users needed extra capacity, they could summon new hosts quickly and dispense them later. The new arrangement means it’s still possible to spin up new resources, but only with a one-year minimum commitment.

Moreover, Broadcom or a reseller authorized by it must be involved, not AWS or its partners. Organizations may need to familiarize themselves with Broadcom’s support channels and processes.

2. Potential cost increases
   Broadcom’s pricing strategy differs from AWS’s, and there’s a chance VMC on AWS licenses could become more expensive, given Broadcom’s history of raising prices post-acquisition. Customers have already been reporting licensing cost increases of 3 to 10x.

3. Limitations on AWS integration
   The level of integration and control between VMC on AWS and native AWS services might decrease compared to the previous setup with AWS managing the offering. Organizations must explore the level of control and available functionalities under Broadcom’s management.

4. Limited cloud portability
   With changes to VMware Cloud on AWS, organizations may find it more challenging to implement hybrid cloud strategies using familiar VMware tools.

5. Uncertainty about future development
   There are questions about how prioritized the VMware Cloud on AWS offering will be in Broadcom’s product strategy.

6. Re-evaluating partnerships
   Broadcom has stringent requirements for joining the new partner program, which has also raised concerns among organizations that they might have to change their tech partners. This can be disruptive as organizations rely on partners for sales, support, and implementation.

Discover how to navigate the impact of Broadcom's VMware acquisition