Broadcom's VMware Strategy Sparks Mass Customer Exodus to Nutanix

The Scale of the Migration

Nutanix, a major competitor to VMware in the virtualization and hybrid cloud market, is claiming a significant influx of customers fleeing from VMware following Broadcom's takeover. Speaking at the company's .NEXT conference in Chicago, Nutanix CEO Rajiv Ramaswami stated that the platform now serves approximately 30,000 customers, with a large proportion having migrated from VMware. While a Nutanix spokesperson declined to provide an exact figure, they confirmed to Ars Technica that "thousands" of former VMware users have already made the switch. This exodus is reportedly driven by widespread dissatisfaction with Broadcom's management of VMware's licensing, pricing, and product roadmap.

From VMware to Nutanix: A Growing Trend

The migration trend, which has accelerated since Broadcom completed its acquisition of VMware in late 2023, is reshaping the competitive landscape of enterprise IT infrastructure. Ramaswami emphasized that Nutanix's hyperconverged infrastructure (HCI) and cloud-native solutions offer a smoother transition for many organizations seeking to reduce dependency on VMware's proprietary ecosystem. The CEO pointed to customer disapproval over Broadcom’s VMware strategy as a primary catalyst. According to industry analysts, Broadcom's moves—such as bundling products, increasing subscription costs, and limiting support for perpetual licenses—have alienated even loyal VMware customers.

Customer Sentiment Driving Change

Negative sentiment around Broadcom's approach has been widely reported in technology media. In a press briefing at the .NEXT conference, Ramaswami noted that “many of our new customers come from VMware” and that the negative perception of Broadcom's strategy is a key driver. This aligns with reports from multiple IT publications, including SDxCentral, which documented the CEO's remarks. The underlying message: organizations are actively seeking alternatives to avoid being locked into Broadcom's vision for VMware.

For decades, VMware dominated the server virtualization market, but Broadcom's acquisition has introduced uncertainty. Customers are now evaluating Nutanix, Microsoft Azure Stack HCI, Citrix, and other platforms as replacements. Nutanix, in particular, has capitalized on the situation by offering migration tools and flexible licensing models. The company's Nutanix Cloud Clusters (NC2) even allows customers to run VMware workloads on Nutanix infrastructure, easing the transition.

The Broader Impact on the Industry

The migration of thousands of VMware customers to Nutanix signals a potential shift in the virtualization market. If Broadcom fails to address customer concerns, the trend could accelerate, leading to a more fragmented landscape. Nutanix's claims—though unverifiable in exact numbers—underscore the severity of the backlash. For now, competitors are aggressively marketing their ability to provide a simpler, more cost-effective alternative to VMware.

To read more about the original report, see the full article below.

This article is based on reporting by SDxCentral and Ars Technica.