If you’re in the IT industry or a business owner, chances are you’re hearing talk about the recent merger between Broadcom and VMware. Broadcom is a global tech leader, and acquiring VMware makes sense for their portfolio.
However, this doesn’t mean everyone’s thrilled, especially with the changes Broadcom is making to VMware’s product licensing contracts. Broadcom is doing away with perpetual licensing and adopting a subscription-based model. Adapting to Broadcom VMware licensing changes can be challenging but there are ways you can help the process go a little more smoothly.
Understanding the Changes to VMware Licensing:
Before you can adapt to the changes being made to VMware’s licensing model, it helps to have a basic understanding.
So, what are these changes? Instead of offering perpetual licenses, you know you pay a one-time fee and have lifelong product access, Broadcom is switching to a subscription model. Yes, this means paying more than once to access VMware solutions.
But what does this mean for current perpetual license holders? Initially, not a lot will seem to change. As long as your original contract hasn’t expired, your perpetual license is still valid. You can access any VMware products that correspond with your license.
However, there’s a catch. You’re not eligible to receive support or any updates. If you run into a problem, you can’t rely on any support from the VMware or Broadcom help desk.
When your contract expires, you’re not going to be able to renew your perpetual license. Instead, you need to purchase a subscription-based license. Okay, before you start panicking at added costs, there’s some good news. You can receive a one-time discount on subscription license costs by exchanging your perpetual license.
What you can’t do is trade in your perpetual license for a free subscription. Unfortunately, the best you can do is take advantage of some savings.
Tips On Adapting to Broadcom VMware Licensing Changes:
Even though eventually you’re going to need to switch to a subscription license if you want to continue using VMware products, you should have a little time. Remember, your perpetual license is valid until your contract’s expiration date. When your contract expires depends on its starting date.
Whether it expires in a few weeks or months, you have some time to figure out how to best transition to subscription licenses without disrupting business operations. If you’re not sure where to get started, here are a few helpful tips.
Perform an Audit on Existing VMware Licenses:
This is the perfect time to run an audit on your existing VMware licenses. Are you holding licenses for products you never use? What about overlapping licenses? Maybe you hold licenses for multiple products that perform similar functions.
International corporations with multiple offices may want to check for any duplicate licenses. Even though VMware is pretty good about alerting customers when they’re about to purchase a duplicate license, things can fall through the cracks. This can be especially true if the licenses are being purchased by different departments in varying locations.
While performing the audit, think about any gaps in your licenses—are you lacking access to a solution that can boost operational efficiencies? If you find any gaps, jot them down, as this will make it easier when it’s time to decide on a licensing subscription. Determining what your business needs is the best way to prevent any disruptions.
Create a Transition Plan:
Creating a transition plan isn’t something you should do alone. You can go solo but it’s not a good idea. Chances are, you’re going to miss something that can impact a department or your business’s overall operations.
Who should you include in the planning session? This depends on your business but generally, you want to include your finance, procurement, and IT departments. Each department brings something different to the table and this can influence your decision.
Your finance department can help create a budget, while procurement is responsible for securing the licenses for the products recommended by your IT personnel. As you can see, creating a successful transition plan is a group effort.
Your plan should also take into account when your perpetual license contract expires, so this way, your transition from perpetual to subscription licenses goes off without a hitch. Some staff may not even notice the change if you create an effective plan.
Take Advantage of Financial Incentives:
Broadcom has a goal to increase its revenue by 100% in three years. The switch to subscription-based licenses is designed to help Broadcom meet its profitability goal.
This push for fairly rapid profit growth can be beneficial for perpetual license holders. Since Broadcom is anxiously trying to get rid of perpetual licenses, they’re offering financial incentives to existing customers who switch to subscription-based services.
We already touched on Broadcom’s trade-in program. If you stay with Broadcom after your previous contract expires, you can trade in your perpetual license for a discount on a subscription, which is usually a one-time-only offer, but the discount can make it easier for companies with limited budgets to successfully make the switch.
You may also be able to reduce subscription costs by trading in your contract early. Remember, Broadcom is actively trying to do away with all existing perpetual licenses and financial incentives are an effective way of achieving this goal.
Before you get excited and rush to take advantage of a discount, communicate with your finance department. Make sure the subscription fits into your operating budget and is a worthwhile long-term investment.
Stay Current on the Latest Broadcom Updates:
Since Broadcom only acquired VMware back in 2023, more changes may be in the works. Along with visiting Broadcom’s webpage for the latest updates, pay attention to industry chatter.
Chances are, you’ll hear about any new changes from the grapevine before it’s published on the company’s webpage. By staying current with the latest updates, you’re better prepared to meet any additional changes.
Making the Switch to Subscription-Based Licensing:
Change can be a big deal but it can also be beneficial. Yes, paying a subscription fee for VMware solutions can impact your company’s budget. However, it can also motivate you to review your current licenses and close any gaps that may exist.
Create a plan, and make sure to clearly communicate it with stakeholders, and you may find that switching to Broadcom’s subscription licenses may not be such a big deal.
Disclaimer:
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