Broadcom tightened its post-VMware acquisition relationship with Google Cloud that will see more VMware products running in Google Cloud environments and more promotion of those efforts. It’s also closing in on launching a long-promised VMware license portability program with the hyperscaler.
The work will see Broadcom move VMware workloads to Google Cloud, including customer-facing products and services and internal services. This will allow those VMware workloads to operate more efficiently on Google’s core platform and use Google’s Vertex AI analytics platform.
Broadcom and Google will also more closely align their products and go-to-market organizations to support product development, sales, deployment and support. The companies noted this will allow them “to identify business growth opportunities and better assist customers with infrastructure modernization.”
Broadcom will also be adding some of its products and services to the Google Cloud Marketplace, including its Symantec Network Protection. This will join already available marketplace products like VMware Tanzu Application Suite, AppNeta and Clarity.
“Businesses run mission-critical workloads on Broadcom and VMware software, which will now be optimized for Google Cloud's secure, trusted infrastructure,” Kevin Ichhpurani, corporate VP of global partner ecosystem and channels at Google Cloud, said in a statement. “Together with Broadcom, we will enhance user experiences by streamlining operations with generative AI and enabling license portability for VMware Cloud Foundation users.”
VCF license portability coming to Google Cloud … eventuallyBroadcom also reiterated plans to bring its recently unveiled VMware Cloud Foundation (VCF) license portability to the Google Cloud VMware Engine platform, though it could be coming slightly later than expected depending on how you view the word “by.”
Broadcom had initially said the controversial program would be hitting the Google Cloud VMware Engine “in the second quarter of calendar year 2024,” which would end June 30. Broadcom is now stating the portability will be “available by this July.”
Either way, Google Cloud VMware Engine customers will be the first from one of the large hyperscalers to gain the capability to deploy the software on-premises and use the subscription in supported hyperscale cloud environments. Current VCF customers can transfer the remaining value of their existing subscription to Google Cloud VMware Engine or opt to buy access to a full-integrated Google Cloud VMware Engine environment with VCF software directly from the hyperscaler.
Prashanth Shenoy, VP of marketing at VMware, described this as “you retain your license subscription as you move.”
The license portability change was one of the first moves Broadcom made following its acquisition of VMware, which has previously operated under a perpetual licensing model. The move has drawn consternation from the market, with analysts noting considerable confusion from enterprises that have spent years deeply embedding VMware technology into their operations using a perpetual licensing model.
Shenoy in a recent interview with SDxCentral admitted that explaining the pricing change has been a challenge.
“A lot of our customers were on perpetual licenses and when they move to a subscription, the pricing is going to be different because perpetual licenses were mainly providing us renewal and support costs, which is a very different cost structure in an opex model compared to a core subscription price,” Shenoy said. “So, the price change and the price increase that our customers feel is mainly because of that apples-to-oranges comparison. I was paying support on my perpetual now I’m paying the value of the license that has built-in support and it’s a subscription based on a yearly basis. So that’s kind of the price change that they’re seeing.”
However, Shenoy also added that the move “provides true flexibility and investment protection for our customers who buy the license once and deploy it where you want, and then the next day you can take it to a managed service provider of your choice – who we support – and then deploy it as a managed service without having to pay for the VCF pod.”
Comments