December 12, 2023 Broadcom revises VMware’s licensing model, introducing significant subscription cost reductions and changes in response to earnings challenges.

Broadcom, following its acquisition of VMware, has made a notable shift in VMware’s licensing approach, including a substantial 50% reduction in subscription prices for VMware’s Cloud Foundation and a move away from perpetual licenses.

This change comes as part of a broader strategy to simplify the product portfolio, focusing on core virtualization for smaller entities and advanced suites for larger deployments.

The move to a subscription-only model, aligning with current industry trends, could impact VMware’s financials with resulting customer push back on the new pricing model.

Sources include: The Register