Big firms slowly unwind VMware reliance after Broadcom deal

CloudBolt reports that most large North American enterprises using VMware are taking steps to reduce their reliance on the virtualisation platform, even though a mass exodus has not materialised in the two years since Broadcom acquired VMware.

In a survey of 302 enterprise IT decision-makers at organisations with more than 1,000 employees, 86% said they are actively reducing their VMware footprint. The results suggest phased transitions rather than full exits, with pricing concerns and operational complexity shaping strategy.

The research also suggests expectations around cost have shifted since 2024. In CloudBolt's earlier baseline study, 73% of respondents expected VMware costs to more than double. In the latest survey, only 5% said they have seen increases of 100% or more.

Concern about what comes next remains high. Some 88% said they are worried about future price increases, and respondents said that concern is influencing decisions now.

CloudBolt CMO Mark Zembal described the shift as a move from speculation to operational planning. "Two years ago, the market was dominated by knee-jerk speculation and worst-case projections," he said. "This latest study separates noise and speculation from reality. The fear has cooled, but the pressure hasn't - and most teams are now making practical moves to build leverage and optionality - even if for some that includes the realization that a portion of their estate never moves off VMware."

Slow unwind

The data suggests many enterprises are running parallel plans while they test alternatives. More than half of respondents (56%) said they have changed their VMware strategy two or more times since the acquisition, pointing to frequent re-evaluation of costs, contracts, and migration feasibility.

A majority (54%) said they are staying with VMware while actively reducing dependence. This often means moving only certain workloads, while keeping critical systems in place longer.

One respondent described the difficulty of decoupling processes and tooling built up over years. "The process of unwinding a decade of process dependencies is taking 18-24 months. This sideways abstraction is far more complex than a standard cloud lift-and-shift, leading to a significant loss of confidence in our ability to exit quickly enough to avoid the next renewal cliff."

The findings also show how organisations are choosing migration destinations. Among workloads that are moving, 72% are heading to public-cloud infrastructure-as-a-service. Respondents also pointed to Microsoft-focused alternatives and software replacements as part of a broader portfolio shift.

Hyper-V and Azure Stack were cited by 38% of respondents, while 34% referenced SaaS replacements. The mix suggests many organisations are weighing a combination of re-hosting, platform substitution, and application change, rather than relying on a single destination.

Executive scrutiny

The survey suggests VMware strategy is increasingly a boardroom topic rather than an infrastructure-only decision. Some 41% of respondents reported increased executive pressure since the acquisition, reflecting closer attention to vendor exposure and budget volatility.

That shift has implications for IT leaders balancing risk, cost, and operational continuity. Multi-platform environments can mean duplicated tooling, additional skills requirements, and new governance overhead. Those factors appear to be driving cautious, staged plans instead of rapid replacement programmes.

CloudBolt CEO Rod Squires said the market has entered a new phase where execution constraints drive decision-making. "Enterprises aren't just asking what they want to do - they're confronting what they can execute safely," he said. "The panic phase is over. Now it's execution: reducing dependency, managing dual realities during transition, and building optionality before the next renewal decision tightens the window - and slams the budget."

The survey was conducted in January 2026 and targeted director-level and above respondents with primary decision-making authority over VMware-related decisions. CloudBolt said it combined structured surveys with qualitative interviews and compared results with its 2024 baseline study conducted six months after Broadcom announced the acquisition.

CloudBolt described the current market as one in which organisations are preparing for future contract and renewal talks while moving workload by workload, often keeping VMware in place as they adopt a broader mix of public-cloud services and replacement platforms.