VMware users lose confidence and massively seek alternatives after Broadcom acquisition
The server virtualization market is on the verge of fragmentation, Gartner warns. In a new market report reviewed by
VMware is Losing Customers
According to Gartner, the impact of the acquisition is “a turning point” for many organizations. Customers complain about significantly higher license costs. These have often increased by 300 to 400 percent, customers have less transparency in product roadmaps, and are concerned about the quality of support. VMware still accounted for 96 percent of market share in revenue in 2024, but that confidence is now crumbling.
No competitor offers an identical solution, Gartner acknowledges, but the switch to alternatives is no longer a taboo for many companies. The advice is clear: start an exit strategy now and don’t wait until contracts expire.
Opportunity to Modernize
Gartner also sees the crisis as an opportunity: those who have to migrate anyway can use this transition to eliminate technical debt and modernize applications. The analysts advise IT managers to make a list of necessary hypervisor functionalities, test “quick win” scenarios with alternative platforms, and have a plan B ready for the current hypervisor vendor.
More than 30 alternative virtualization platforms exist, but most are “incomplete or still in development.” Gartner therefore does not expect a massive migration in the short term. According to the research firm, the real movement will only start from 2026, with broad adoption following from 2027.