VMware price hike forces Australian company with 24,000 virtual machines to jump ship

VMware price hike leads Computershare to switch to Nutanix for 24,000 VMs.

: After Broadcom's acquisition of VMware led to significant price increases, Australian company Computershare decided to move its 24,000 virtual machines from VMware to Nutanix. According to Computershare CTO Kevin O'Connor, the migration will save costs and strengthen the IT infrastructure. The price hikes and service changes under Broadcom have raised concerns about VMware's future viability.

Following Broadcom's acquisition of VMware, the company announced minor price increases targeted at large organizations, misleading some clients about the extent of the changes. Computershare, an Australian financial services provider, experienced a shocking 10 to 15 times increase in their billing for VMware's virtualization technology. Kevin O'Connor, Computershare's CTO, disclosed these changes at the Nutanix Next conference in Barcelona, indicating a decisive shift away from VMware due to the unsustainable cost increases.

The strategic decision by Computershare to transition their 24,000 virtual machines to Nutanix AHV highlights significant dissatisfaction with VMware’s pricing strategies under Broadcom's management. The move is anticipated to not only save the company considerable expenses but also make their IT operations leaner and more efficient. O'Connor predicted that the transition would be completed by next year and will quickly pay for itself, suggesting a strong financial incentive behind the decision. Additionally, he hinted at a broader industry trend, where other significant VMware clients might also consider similar shifts away from the platform if the pricing and service issues are not addressed.

Broaddeep, in its pursuit of higher profits, may not have fully appreciated the extent of the reliance and flexibility its client base appreciated from VMware. This miscalculation might hurt VMware's market position as other businesses follow Computershare’s example, seeking more cost-effective and reliable alternatives like Nutanix. The entire situation raises questions about VMware's long-term sustainability and relevance in the fiercely competitive virtualization market, as it potentially loses some of its largest customers.