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Companies relying on Dell Technologies’ VxRail must complete their contract renewals before the end of April. From then on, Broadcom will turn off the tap on permanent VMware
Companies relying on Dell Technologies’ VxRail must complete their contract renewals before the end of April. From then on, Broadcom will turn off the tap on permanent VMware licenses and the price will skyrocket.
Companies that have built their infrastructure with Dell Technologies’ VxRail face an uncertain future. Finally, Dell’s HCI solution combines its own hardware with software from VMware. This wasn’t a problem when Dell owned VMware and since then, when both organizations were independent but closely collaborative. Since Broadcom acquired VMware, the situation has changed dramatically.
Dell partners see customers struggling to quickly close contracts for VxRail. VxRail with a so-called perpetual license (i.e. without a subscription formula) is available until April 30, 2024. Orders placed with Dell prior to this date are eligible for up to three years of contract. In this case, partners and their customers remain subject to the old VMware licensing system and gain time.
After April 30th the door will be irrevocably closed. Dell has already received an extension as Broadcom actually removed the perpetual licenses on December 11th last year. After April 30, VxRail will become a hardware product that can be combined with a significantly more expensive VMware Cloud Foundation license as part of a subscription system. That would easily cost customers thirty percent more.
Despite persistent complaints and sometimes desperate reports from the market, Broadcom continues to restructure its portfolio in the name of simplicity since the VMware acquisition. In practice, this only applies to the largest customers, while for medium-sized companies the next invoice sometimes increases tenfold.
In this particular case, even the simplicity argument is far-fetched. At that time, Dell and VMware jointly developed the VxRail solution. The HCI solution helps Dell become a leader in the HCI market, providing customers with hardware and software integration. Broadcom is now destroying that model and making HCI a more complex and expensive proposition for VxRail customers.
Anyone who extends their VxRail HCI contract for a maximum of three years before April 30th can continue to enjoy the old system, including support for the overall solution from Dell via ProSupport and ProDeploy.
Source: IT Daily
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