“Negative” views of Broadcom driving thousands of VMware migrations, rival says

Amid customer dissatisfaction around Broadcom’s VMware takeover, rivals have been trying to lure customers from the leading virtualization firm. One of VMware’s biggest competitors, Nutanix, claims to have swiped tens of thousands of VMware customers.

Speaking at a press briefing at Nutanix’s .NEXT conference in Chicago this week, Nutanix CEO Rajiv Ramaswami said that “about 30,000 customers” have migrated from VMware to the rival platform, pointing to customer disapproval over Broadcom’s VMware strategy, SDxCentral, a London-based IT publication, reported today.

“I think there’s no doubt that the customer sentiment continues to be negative about Broadcom,” Ramaswami said, per SDxCentral.

Since Broadcom acquired VMware in November 2023, numerous VMware users have sought to reduce or end their reliance on VMware technologies. The most common drivers for migrations are that VMware is getting too expensive; users are being forced to bundle products; the company ended perpetual licenses; and VMware has become harder to work with after Broadcom culled channel partners.

Broadcom’s strategy has made VMware unaffordable or impractical for most small- to medium-size businesses (SMBs) and narrowed VMware’s focus to enterprise-size customers.

Nutanix hasn’t specified how many of the customers that it got from VMware are SMBs or enterprise-sized; although, adoption is said to be strongest among mid-market customers as Nutanix also tries wooing larger customers, often by starting with partial deployments.

During this week’s press briefing, Ramaswami reportedly said that some of the customers that moved from VMware to Nutanix during the latter’s most recent fiscal quarter represented Nutanix’s “strongest quarterly new logo additions in eight years.”

“Most of the logos came from our typical VMware migrations on to the [hyperconverged infrastructure] platform,” he said.

During the Nutanix conference, Brandon Shaw, Nutanix VP and head of technology services, said that Western Union has been migrating from VMware to Nutanix for six months, The Register reported. The financial services company is moving 900 to 1,200 applications across 3,900 cores.

Shaw said that Western Union has been exploring new IT suppliers to help it become more customer-focused. Despite Broadcom’s history of “decent lines of communication” with Western Union, Shaw said that Western Union had “challenges partnering with them.”