Broadcom is mercilessly continuing its major cleanup operation at VMware. From now on, VMware Hybrid Cloud services will no longer be available for purchase via a one-time license, although subscription prices are still surprisingly affordable.

Now that Broadcom has finally completed its acquisition of VMware, the company is leaving no stone unturned. The company has a reputation for combing through the portfolio of acquired companies, and VMware is no different. In a blog, the subsidiary announced a “drastic simplification” of the range of hybrid cloud services.

Specifically, this simplification means that VMware’s portfolio is reduced to two categories: Cloud Foundation And vSphere Foundation. Cloud Foundation includes products related to virtualization, hybrid and private cloud, vSphere Foundation adds “Intelligent Operations Management” and includes Aria in addition to vSphere. Both categories can be supplemented with extras for storage, security and the recently announced private AI offering.

From licenses to subscriptions

The most notable change, however, is how VMware will offer its products from now on. Previously, you could purchase software licenses from the virtualization specialist: after a one-time payment, the product was then in your possession. Licenses will be completely eliminated and replaced with SaaS subscriptions. This offers customers more flexibility and innovation, says Krish Prasad’s marketing pitch.

VMware has been trying to make this change happen for some time, and now that Broadcom is in charge, it’s gaining momentum. From an economic perspective, subscriptions are attractive to a provider because they offer a more consistent source of income. Licensees can exchange their license for a subscription, with VMware promising cheaper prices. Subscriptions are valid on any VMware-approved cloud platform.

Broadcom’s charm offensive

A lot has been said and written about the VMware acquisition. With this reorganized offer, Broadcom seems to want to convince customers of its good intentions. Initially, it was feared that Broadcom would significantly increase the prices of VMware products and focus only on the enterprise segment. By offering subscriptions at lower prices, although no exact pricing is provided, and maintaining vSphere formulas for smaller businesses, Broadcom is responding to both of these criticisms.

However, this will not silence all criticism. In particular, the imposed subscriptions will be up for discussion. “I expect that most VMware customers will be upset by the sudden end to the way they have purchased vSphere for the last two decades, and even more so by being forced to upgrade to new products if you need support. It will likely be a nightmare to complete the transition of existing licensees,” a Gartner analyst told The Register.

For customers who have already considered exiting VMware, this could potentially be the straw that breaks the camel’s back. Companies like Nutanix are ready to welcome this with open arms.