VMware Workload Migration: 35% by 2028
- During a Gartner event, analyst Palmer observed a disconnect in strategy between Broadcom's VMware and hyperscalers like Amazon Web services (AWS). AWS expressed disappointment in May 2024 when...
- Companies have reported that migrating away from VMware can be expensive and lengthy, especially for organizations with limited resources or concurrent large IT projects.
- Despite some customer departures, VMware is contributing substantially to Broadcom's revenue, driven by a shift towards subscription-based models, bundled offerings, and increased pricing.
VMware Under Broadcom: Hyperscaler Relations, Migration Costs, and Revenue Growth
Table of Contents
Updated September 12, 2025, 07:20:32
Broadcom’s VMware and Hyperscaler Dynamics
During a Gartner event, analyst Palmer observed a disconnect in strategy between Broadcom’s VMware and hyperscalers like Amazon Web services (AWS). AWS expressed disappointment in May 2024 when Broadcom prevented AWS and it’s partners from reselling VMware Cloud on AWS as reported by CRN. Despite this,Palmer noted that hyperscalers remain interested in engaging VMware’s customer base,anticipating eventual migration to native cloud services.
VMware Migrations: A Costly and Time-Consuming Process
Companies have reported that migrating away from VMware can be expensive and lengthy, especially for organizations with limited resources or concurrent large IT projects. Palmer recommends a phased approach to migration, suggesting partial migrations can be completed within a year, while full migrations are likely to take at least three years. She also stated, “We are all addicted to hypervisors, and that needs to change.”
Revenue Growth Despite Customer Churn
Despite some customer departures, VMware is contributing substantially to Broadcom’s revenue, driven by a shift towards subscription-based models, bundled offerings, and increased pricing. Broadcom’s most recent earnings report indicated that infrastructure software revenue, largely attributable to VMware, increased by 25% year-over-year, reaching $6.6 billion according to Ars Technica.