Another cloud provider bails on VMware after receiving a 900-percent price hike

Cloud providers leave VMware after Broadcom's 900% price hikes.

: Beeks Group, a UK cloud firm, moved its 20,000+ VMs from VMware to OpenNebula after a 900-percent price hike by Broadcom. AT&T is suing Broadcom over a 1,050 percent rate increase for its 75,000 VMs. Another Australian company switched from VMware to Nutanix after a similar rate hike. Many companies quietly leave due to these price increases, highlighting a trend of dissatisfaction.

Beeks Group, a UK firm with over 20 data centers supporting more than 20,000 virtual machines, transitioned most of its virtual machines from VMware to the open-source provider OpenNebula. This decision followed a licensing invoice from Broadcom, VMware's parent company, that was ten times higher than their previous billing amount.

AT&T also faced a massive price increase, leading them to file a breach of contract lawsuit against Broadcom, as the company demanded a subscription switch costing 1,050 percent more. Although AT&T's contract is pending a court decision, they plan to exit their agreement with VMware once it concludes.

An Australian firm previously moved its 24,000 VMs to Nutanix after encountering similar price escalations. Broadcom's strategy likely anticipates that the high cost of migration serves as a deterrent for smaller companies, even amid substantial dissatisfaction among larger clients facing unsustainable financial demands.

Cloud computingBroadcomPricing strategy