News

Broadcom Scrambles To Allay VMware-AWS 'Breakup' Worries

• By David Ramel
• 05/06/2024

Reports that VMware is leaving the Amazon Web Services cloud are greatly exaggerated, according to Broadcom CEO Hock Tan this week.

Broadcom, of course, acquired VMware in late 2023 and has been under heavy criticism for its handling of the venerable virtualization company's portfolio since then.

Specifically, Broadcom decided to gut VMware's perpetual licensing model in favor of a subscription model, a move that has put many organizations' budgets and infrastructure plans in tumult. Tan has made several public statements aiming to mollify VMware customers, with mixed results.

On Monday, the CEO had to put out another potential firestorm.

"Unfortunately, there have been false reports that VMware Cloud on AWS may be going away, which is causing unnecessary concern for our loyal customers who have used the service for years," said Tan in a blog post titled "VMware Cloud on AWS - here today, here tomorrow."

"We are acting quickly to correct this misinformation because, as Winston Churchill correctly said, 'A lie gets halfway around the world before the truth has a chance to get its pants on,'" Tan wrote. "I'm pleased to report the service is alive, available, and continues to support our customers' strategic business initiatives just as it always has."

Tan didn't specify where those reports came from, but a May 1 article by The Register contained this subhead: "As the rumor mill whispers about a breakup with AWS."

The article also mentioned that "[m]ultiple social media posts from recent days indicate that VMware Cloud on AWS will be discontinued. The change will mean sales cease as of May 1, but the service will remain available."

However, Tan clarified that customers will not be able to buy VMware subscriptions from AWS channels, as they had been able to do prior to the acquisition. He wrote:

So, here's what's really going on. VMware Cloud on AWS is no longer directly sold by AWS or its channel partners. It's that simple. What this means is that customers who previously purchased VMware Cloud on AWS from AWS will now work with Broadcom or an authorized Broadcom reseller to renew their subscriptions and expand their environments. Customers who have active one- or three-year subscriptions with monthly payments that were purchased from AWS will continue to be invoiced by AWS until the end of their term.