Enterprise technology leaders are facing a hard truth. VMware’s recent licensing changes have rippled through the business far beyond IT, even reaching the attention of CFOs. What was once a steady, predictable investment has become a shock to the system and for many organizations, a source of both frustration and uncertainty.
This moment may feel like a setback, but it’s also an opportunity. Licensing shifts can be the push leaders need to step back and intentionally redesign their information architecture for adaptability, visibility, and long-term control.
Budgets Disrupted
Broadcom’s decision to move from perpetual to subscription licensing, along with new minimum requirements, has fundamentally changed the economics of virtualization. What used to be a predictable, one-time capital expense is now an ongoing operating expense. And for many organizations, a larger one than expected.
Small businesses and those with legacy infrastructure are hit especially hard, while larger enterprises are facing budget strain and tough renewal conversations. These renewal conversations also caught many CIOs off guard, often sparking heated reactions and hard questions from CFOs about why a long-stable investment has suddenly become a rising line item.
Doing nothing is not an option. The question is how to move forward: renewing VMware under new terms, or using this moment to take a broader, more strategic view of your enterprise architecture and cloud strategy. Enterprises that don't renew (with the new cost structure) will not have support from Broadcom, no access to critical patches, and greater exposure to business disruption. If you do renew, the costs will increase.
A Catalyst for Change
VMware’s licensing shift is a trigger, but the larger conversation is about designing an information architecture that serves the business. Now is the time to look to modern architecture which can include:
- Adapt to shifting needs and workflows
- Provid visibility across hybrid and multi-cloud environments
- Reduce reliance on any single vendor
- Treat data as a true competitive advantage, not just an asset.
Forward-looking organizations aren’t just planning their next renewal. They’re mapping workload placement over the next five years and balancing compliance and performance with cost.
For many, the outcome is hybrid: VMware remains part of the picture, but workloads shift to clouds better suited for AI, analytics, or databases. The answer is rarely either/or. It’s often all the above. A mix of public, private, collocation, and on-premises. And even what we are now calling “Polycloud” where clients use all cloud services for their specific needs.
The goal is to achieve flexibility without vendor lock-in.
Taking the Long View
Diversifying workloads introduces both freedom and complexity. Many leaders worry about tech spread, and while sprawl is a risk, so is vendor dependence. Putting all your eggs in one basket only to have a third party’s decisions dictate the direction of your business.
The answer lies in orchestration and governance:
- Tools that manage multi-cloud as one ecosystem
- Policies that enforce compliance and minimize waste
- Strategies that connect cloud decisions to staffing, security, and business outcomes
The right approach is not a quick pivot, but a phased roadmap. Building for the future while accounting for existing investments and technical debt along the way.
3 Questions Every Leader Should Be Asking
- What do our current operations look like? Are we already in private or public clouds? What does our current SaaS environment look like?
- Where should our workloads live over the next five years? Think beyond this renewal cycle. Which applications belong in public cloud, private data centers, colocation, or on-prem—and why?
- How do we orchestrate and govern across environments? Diversifying vendors reduces lock-in, but without strong governance it can turn into sprawl. What tools, processes, and skills will we need to secure, manage, and staff a poly-cloud future?
The Decision Point
VMware’s licensing shift is both an IT issue and a watershed moment for leadership. For some, the answer may be to stay with VMware under new terms. For others, it may spark a phased migration to new platforms and architectures.
But in every case, this moment can be a steppingstone toward a modern information architecture. One that adapts to business needs, provides visibility and governance across environments, leverages data strategically, and frees enterprises from being held hostage by a single vendor.
At BlueSky IT Partners, we help leaders step back, evaluate current operations, and build a roadmap that balances risk, cost, and control. Together, we design strategies that secure your environment, strengthen governance, and position your business to thrive on your terms, not a vendor’s.