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Silicon Flash > Blog > Global Market > Broadcom (quietly) brings back free VMware ESXi hypervisor
Global Market

Broadcom (quietly) brings back free VMware ESXi hypervisor

Published April 20, 2025 By Juwan Chacko
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Broadcom (quietly) brings back free VMware ESXi hypervisor
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Challenges in VMware Acquisition by Broadcom

When Broadcom acquired VMware, the approach taken was criticized for being clumsy, leading many enterprises to reconsider their partnership with the vendor. The transition to subscription models favored larger customers with longer, three-year licenses. In response to the negative publicity, competitors of VMware seized the opportunity by offering migration deals and packages.

Complexity of Migrating from VMware

Although the idea of switching from VMware’s virtualization platform may seem appealing, the reality is that it is a challenging task. According to Gartner, a project to migrate servers could require a significant amount of resources. It is estimated that between seven and 10 full-time employees would be needed for a month, and up to six employees for nine months, for a large-scale VMware migration.

Threats to VMware’s Dominance

While Broadcom’s decision to reintroduce the free hypervisor may have been influenced by external pressure, it is not the only factor posing a threat to VMware’s position in the market. The landscape of computing is evolving in the era of artificial intelligence (AI).

Rob Enderle, president of the Enderle Group, highlights that VMware remains relevant for managing IT infrastructure supporting AI initiatives. However, the focus on large-scale AI model training and inference is shifting towards bare-metal clusters, Kubernetes, and specialized public cloud services. This shift makes VMware’s traditional hypervisor-centric approach less critical for enterprise workloads.

Adapting to the AI Era

Broadcom is adapting to this changing environment, but the core of AI development is moving away from the traditional VM management sphere. Enderle notes that the current emphasis on AI training diminishes VMware’s relevance. Additionally, customers are turning away from the platform due to dissatisfaction with Broadcom’s licensing models.

See also  VMware Users Without Subscriptions Warned of Legal Consequences by Broadcom

As the computing landscape continues to evolve, VMware and Broadcom face challenges in maintaining their dominance in the market. Adapting to the demands of the AI era will be crucial for both companies to stay competitive and meet the evolving needs of enterprises.

TAGGED: brings, Broadcom, ESXi, free, hypervisor, quietly, VMware
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