Broadcom Brings Back VMware vSphere Standard and Enterprise Plus

In the rapidly evolving world of virtualization, Broadcom’s decision to reintroduce VMware vSphere Standard and Enterprise Plus licenses is making waves across the IT industry. As part of Broadcom’s strategy to address customer feedback, these updates aim to simplify VMware’s licensing options while enhancing value. Starting in November 2024, these changes bring expanded storage capacities, flexible licensing terms, and a renewed focus on meeting diverse customer needs. Here’s what it means for businesses navigating the virtualization landscape.

What's New

1. Reintroduction of vSphere Standard and Enterprise Plus
​After a year of consolidation following Broadcom’s acquisition of VMware, the company has reinstated two licensing options that were removed during its initial portfolio overhaul:

• vSphere Standard: Offers essential compute virtualization features for small and medium-sized businesses.
• vSphere Enterprise Plus: Provides advanced capabilities like distributed switches, enhanced security, and automation, tailored for large enterprises seeking scalability and efficiency.

This move ensures that businesses can select a licensing tier that aligns with their operational needs without being forced into higher-cost bundles like VMware Cloud Foundation (VCF).

2. 2.5x Increase in vSAN Storage Capacity
​Broadcom has enhanced VMware vSphere Foundation (VVF) by increasing its vSAN capacity to 250 GiB per core, up from 100 GiB. This significant boost lowers the barrier to adopting VMware’s hyperconverged infrastructure (HCI) solutions, making them more cost-effective for businesses.
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Prashanth Shenoy, Broadcom’s VP of Cloud Platforms, described this update as a move that “truly makes it an enterprise-class HCI platform.” This expanded storage capacity will benefit organizations transitioning to software-defined storage or running demanding virtualized workloads.

3. Flexible Licensing and Pricing Options
​Broadcom is offering subscription-based licensing with flexible terms, payment plans, and pricing structures. This adjustment demonstrates Broadcom’s responsiveness to customer feedback about affordability and aligns with businesses’ fiscal planning needs.

Why This Matters

Addressing Customer Frustration
Broadcom’s initial portfolio simplification left many VMware customers dissatisfied, with some even exploring alternative solutions like Nutanix, Proxmox, and XCP-ng. By reintroducing vSphere Standard and Enterprise Plus, Broadcom aims to rebuild trust with its customer base. These options allow businesses to:

• Continue using VMware’s best-in-class virtualization technology without overcommitting to unnecessary features.
• Avoid the sticker shock associated with bundles like VCF.

​Maintaining Market Leadership
VMware has long been a leader in the virtualization space, but the market has become increasingly competitive. Analysts, including Gartner, predict that a growing number of enterprises will test alternative distributed hybrid infrastructure (DHI) products due to Broadcom’s previous licensing missteps. By responding to customer demands, Broadcom seeks to retain VMware’s competitive edge and prevent further market erosion.

Encouraging Hybrid Cloud Adoption
While vSphere Standard and Enterprise Plus target compute virtualization, Broadcom continues to position VMware Cloud Foundation (VCF) as its flagship product for hybrid cloud environments. This layered approach caters to businesses at various stages of their cloud journey, ensuring a wide spectrum of choices for IT infrastructure modernization.

What Does This Mean for Business

1. Increased Flexibility: The return of vSphere Standard and Enterprise Plus offers more tailored options for businesses of all sizes. Organizations can now choose the features they need without being locked into higher-tier solutions.
2. Cost-Effective Storage: The expanded vSAN storage capacity significantly reduces costs for HCI adoption, making VMware’s storage solutions more accessible to small and medium-sized enterprises.
3. Improved Licensing Transparency: Flexible subscription lengths and payment options address long-standing concerns about affordability and licensing complexity.

Will It Be Enough

Despite these positive changes, Broadcom faces an uphill battle in regaining customer loyalty. Equity research suggests up to 30% of VMware’s customer base may explore alternatives like Nutanix or open-source platforms due to frustrations with Broadcom’s earlier decisions. However, many enterprises remain locked into multi-year VMware contracts, giving Broadcom a window of opportunity to demonstrate value and retain its market position.

Broadcom’s updates to VMware vSphere and its licensing model mark a significant shift towards customer-centric innovation. By reintroducing vSphere Standard and Enterprise Plus, enhancing vSAN storage, and providing flexible pricing, Broadcom is addressing key pain points that have plagued VMware customers over the past year. While the market’s final verdict remains uncertain, these changes are a step in the right direction.
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For businesses, now is the time to review their virtualization strategies and assess how these updates align with their operational goals. Broadcom’s layered approach ensures there’s something for everyone—whether you’re focused on compute virtualization, HCI, or hybrid cloud solutions.

Reference

https://news.broadcom.com/cloud/bringing-more-value-and-options-to-the-vmware-cloud-foundation-portfolio