The exodus from VMware continues, with a significant majority of organizations actively working to reduce their reliance on the virtualization platform following Broadcom’s acquisition in 2023. A new survey from CloudBolt reveals that 86% of respondents are actively reducing their VMware footprint, signaling a sustained shift in IT infrastructure strategies. This trend, initially predicted by analysts like Gartner, is driven by concerns over pricing changes, licensing restrictions, and a perceived decrease in flexibility since the acquisition.
The changes implemented by Broadcom have particularly impacted little and medium-sized businesses (SMBs), prompting many to explore alternative solutions. Gartner previously forecast that 35% of VMware workloads would migrate to other platforms by 2028, a prediction that appears to be gaining momentum as organizations reassess their long-term IT investments. The move isn’t necessarily a complete abandonment of VMware, but rather a strategic diversification to mitigate risk and gain greater control over costs.
CloudBolt’s survey provides a detailed breakdown of migration progress. Currently, 36% of organizations have migrated between 1–24% of their VMware environment, whereas 32% have moved 25–49%. A further 10% have migrated over half of their workloads (50–74%), and 2% have moved 75% or more. Notably, 5% of respondents have not yet begun any migration efforts. This suggests a phased approach, with many organizations carefully planning and executing their transitions.
Where are these workloads going? Public cloud infrastructure as a service (IaaS) is the most popular destination, attracting 72% of migrated workloads. Microsoft’s Hyper-V/Azure stack is also a significant beneficiary, capturing 43% of respondents. These figures highlight the growing appeal of cloud-based solutions and the increasing adoption of hybrid cloud strategies.
Migration Challenges: Complexity and Skills Gaps
While the desire to reduce VMware dependence is strong, the migration process isn’t without its hurdles. CloudBolt’s report identifies multi-platform complexity as the biggest challenge, cited by 52% of respondents. Managing diverse environments with different operational models requires significant effort and expertise. Skills gaps also pose a substantial obstacle, with 33% of organizations lacking the necessary in-house capabilities to effectively manage the transition.
“The fear has cooled, but the pressure hasn’t—and most teams are now making practical moves to build leverage and optionality—even if for some that includes the realization that a portion of their estate never moves off VMware,” said Mark Zembal, CloudBolt’s chief marketing officer, in a statement. This sentiment underscores the pragmatic approach many organizations are taking, recognizing that a complete migration may not always be feasible or desirable.
Broadcom’s Strategy: Maximizing Value from a Diversifying Market
Interestingly, CloudBolt’s analysis suggests that Broadcom’s strategy isn’t necessarily focused on retaining every VMware customer. The report indicates that Broadcom aims to maximize value from those who remain on the platform while acknowledging and even anticipating market diversification. “Their strategy was never to keep every customer,” the report states. “It was to maximize value from those still on the platform while the market slowly diversifies. The model assumes churn and it’s built to make the economics perform anyway. Broadcom has done the math—and they’re fine with it.”
This approach suggests a calculated acceptance of customer attrition, prioritizing profitability from a smaller, more committed customer base. The shift from perpetual licenses to subscription models, as noted by VMBlog, has undoubtedly contributed to this dynamic, altering the financial relationship between VMware and its customers.
The ongoing changes within VMware, coupled with the broader trend towards cloud adoption, are reshaping the virtualization landscape. While VMware remains a significant player – recently recognized as a leader in the 2025 Gartner Magic Quadrant for Distributed Hybrid Infrastructure for the third consecutive year, according to VMware Blogs – organizations are increasingly prioritizing flexibility, cost-effectiveness, and vendor diversification.
As companies navigate this evolving environment, the focus will likely remain on building hybrid and multi-cloud strategies that provide the agility and resilience needed to thrive in a rapidly changing digital world. The long-term implications of Broadcom’s acquisition and the resulting market shifts will continue to unfold in the coming years.
What are your thoughts on the future of VMware and the broader virtualization market? Share your insights in the comments below.
