Broadcom deepens VMware integration with Google Cloud and launches a license portability program
Broadcom has strengthened its post-acquisition relationship with Google Cloud, resulting in a deeper integration of VMware products into Google Cloud environments and increased promotion of these initiatives. Additionally, Broadcom is nearing the launch of a highly anticipated VMware license portability program with the Hyperscaler. This collaboration will see Broadcom migrate VMware workloads to Google Cloud, encompassing customer-facing products and services and internal services. This migration aims to enhance the efficiency of VMware workloads on Google’s core platform, leveraging Google’s Vertex AI analytics platform.
Furthermore, Broadcom and Google Cloud will closely align their products and go-to-market strategies to bolster product development, sales, deployment, and support. This alignment will enable both companies to identify business growth opportunities and better assist customers in modernizing their infrastructure. Broadcom will also expand its offerings in the Google Cloud Marketplace, including the addition of Symantec Network Protection to the existing suite of products such as VMware Tanzu Application Suite, AppNeta, and Clarity.
Kevin Ichhpurani, corporate VP of the global partner ecosystem and channels at Google Cloud, expressed that businesses rely on Broadcom and VMware software for mission-critical workloads, which will now be optimized for Google Cloud’s secure and trusted infrastructure. He noted that collaborating with Broadcom would improve user experiences by streamlining operations through generative AI and facilitating license portability for VMware Cloud Foundation users.
VMware Cloud Foundation license portability to be available on Google Cloud ... in due time
Broadcom reiterated its plans to introduce VMware Cloud Foundation (VCF) license portability to the Google Cloud VMware Engine platform. However, the timeline may extend slightly beyond initial expectations, depending on the interpretation of the word “by.”
Broadcom initially announced that the controversial program would be launched on the Google Cloud VMware Engine in the second quarter of 2024, ending on June 30. However, Broadcom now indicates that the portability will be available by July.
Google Cloud VMware Engine customers will soon be the first among the significant hyperscalers to be able to deploy software on-premises and utilize the subscription in supported hyperscale cloud environments. Existing VMware Cloud Foundation (VCF) customers can either transfer the remaining value of their current subscription to Google Cloud VMware Engine or purchase access to a fully integrated Google Cloud VMware Engine environment with VCF software directly from the hyperscale.
Prashanth Shenoy, VMware’s VP of Marketing, highlighted that this approach allows customers to “retain their license subscription as they move.”
Broadcom introduced license portability as one of Broadcom’s actions following its acquisition of VMware, which had traditionally operated under a perpetual licensing model. This change has caused market consternation, with analysts noting significant confusion among enterprises that have long relied on VMware’sVMware’sal licensing. In a recent interview with SDxCentral, Shenoy acknowledged that explaining the pricing change has been challenging.
Shenoy explained that many customers were previously on perpetual licenses, mainly involving renewal and support costs. When transitioning to a subscription model, the pricing structure changes significantly, leading to a different customer cost experience. The previous perpetual licenses primarily covered renewal and support costs, whereas the new subscription model includes the total value of the permit with built-in support, billed every year. This shift has resulted in customers perceiving a price increase due to the “apples-o-oranges” comparison between the old and new cost structures.
Shenoy also noted that this new model offers customers true flexibility and investment protection. They can buy the license once, deploy it as needed, and then move it to a supported managed service provider without additional costs for the VCF pod.
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