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VMware Rivals Poach Thousands of Customers
10 Apr
Summary
- Nutanix claims 30,000 customers have migrated from VMware.
- Broadcom's acquisition led to increased costs and bundled products.
- Western Union is migrating 900 to 1,200 applications from VMware.
Nutanix announced it has successfully migrated around 30,000 customers away from VMware, attributing this surge to negative customer sentiment following Broadcom's acquisition in November 2023. The primary drivers for these migrations include VMware's escalating costs, mandatory product bundling, discontinuation of perpetual licenses, and a more difficult partnership environment.
Broadcom's strategic shifts have rendered VMware products unaffordable for many small and medium-sized businesses (SMBs). Nutanix reported its strongest quarterly new logo additions in eight years, largely from these VMware migrations. Western Union, for instance, is in the process of migrating 900 to 1,200 applications, seeking greater flexibility.
Other companies, including South Korea's Everland theme park and an unnamed entity with 100,000 cores, have also moved to Nutanix. Broadcom continues to push its VMware Cloud Foundation (VCF), though many customers find it exceeds their needs and budget. Despite these customer defections, Broadcom views its acquisition favorably, retaining a strong hold on enterprise clients.
