Broadcom intends to migrate customers with perpetual VMware licenses to license subscriptions. This is evident from recent statements by Broadcom’s management.
Broadcom President Tom Krause shed light on VMware’s future during a call with analysts. One likely change is the licensing policy. Website The Register reports that Krause hinted at a transition from perpetual product licenses to subscription licenses. The transition may take several years.
Advantage and disadvantage
Products with subscription licenses have the advantage of always being up to date. However, for companies that would rather only pay for the necessary updates, licenses are bad news.
Subscription-based licensing models are commonplace in business. In recent years, many organizations implemented a strategy for migrating customers from perpetual licenses to subscription models.
Broadcom wants to acquire VMware for 61 billion dollars (57 billion euros). The acquisition has yet to be approved by authorities. VMware also has 40 days to find another buyer. If Broadcom is forced to cancel the deal for any reason, the organization must compensate VMware with a sum of $1.4 billion.