Broadcom CEO: VMware Cloud on AWS ‘Alive, Available’

Hock Tan sought to quash last week’s rumors that the service is going away. It’s not, but there are significant changes.

Kelly Teal, Contributing Editor

May 7, 2024

4 Min Read
VMware Cloud on AWS

VMware Cloud on AWS is not going anywhere — but Broadcom is changing how buyers access the service.

That’s the word from Broadcom CEO Hock Tan this week in a blog aiming to quash rumors of the platform’s demise.

Those reports started swirling last week; neither Broadcom nor AWS would comment on the matter to Channel Futures, though a Broadcom spokesperson did say VMware Cloud by AWS remained in place.

That’s true, Tan confirmed in his May 6 blog, which featured a rare, straightforward tone (for mass consumption), and which published quickly after the “false reports” about VMware Cloud on AWS circulated. That’s all notable because, throughout Broadcom’s pursuit, acquisition and post-purchase handling of VMware, the company often has been slow to publicly address the many changes it has enacted, and in many cases, its communications have been laden with confusing marketing-speak.

Not so this time.

Broadcom's Hock Tan

“Here’s what’s really going on,” Tan said as he addressed the rumors. “VMware Cloud on AWS is no longer directly sold by AWS or its channel partners. It’s that simple.”

In releasing the new blog on Monday, Tan said Broadcom was “acting quickly to correct this misinformation because, as Winston Churchill correctly said, ‘A lie gets halfway around the world before the truth has a chance to get its pants on.’ I’m pleased to report the service is alive, available and continues to support our customers' strategic business initiatives just as it always has.”

Related:Broadcom Makes Concessions for Upset VMware Cloud Partners

So what exactly has shifted? Customers who used to buy VMware Cloud on AWS from Amazon Web Services now will do so through Broadcom or one of its reseller, Tan said. That does seem to be a win for the channel. Meanwhile, customers still running on one- or three-year subscriptions that they bought from AWS and on which they pay monthly will still be invoiced by AWS until those terms end.

Not coincidentally, AWS has just unveiled a new promotion, “Save when you migrate VMware Cloud on AWS to AWS.” The timing comes not only as Broadcom implements new policies around how the service is sold, but also as it has joined forces with Google Cloud — a key AWS rival — to move VMware workloads there. AWS’ offer includes up to $400 in credits per migrated virtual machine.

AWS sent a statement to Channel Futures, addressing the change at Broadcom.

“We are disappointed that AWS is no longer operating as a VMware Cloud on AWS reseller but continue working closely with Broadcom to serve our mutual customers," the world's largest public cloud computing provider said. We remain committed to helping customers take full advantage of the best cloud services for their business, including VMware Cloud on AWS."

Related:CEO Hock Tan Addresses Broadcom-VMware Questions ‘Head On’

Industry Reactions to the VMware Cloud on AWS News

On LinkedIn, poster Justin Couvillion, a cloud expert in VMware and Microsoft Azure, assessed the situation this way: VMware customers concerned about Broadcom's licensing practices “may see this as a mixed bag. More of the total cost will be in Broadcom's purview — it’s pretty clear some clients have seen increases, yet if the customer has on-prem VMware, they might have more leverage to negotiate it all at a better rate. This point comes down to who you prefer to negotiate with.”

On a similar note, Ahmed Abdelwahab, cloud architect and solutions principal at Dell Technologies, had this to say to end users: “My advice: Move quickly to secure your VMware solution” via one of two options. The first, he said, is to take advantage of AWS’ offer and use the provider’s multiple native services. The second, he noted, is to “detach from AWS” and move VMware to Google Cloud or Azure.

“Both have solid roadmaps with Broadcom and can still resell its solutions,” he said.

For now, it’s unclear why Broadcom seems to have targeted AWS. VMware and AWS teamed nearly seven years ago to offer VMware Cloud on AWS. The technology lets organizations put their applications on VMware Cloud on AWS so they may combine the benefits of public and private cloud environments. AWS lost its rights to resell VMware Cloud on AWS as of April 30, according to a screenshot shared on LinkedIn.

Even so, as Tan concluded in his blog, “VMware Cloud on AWS continues to serve customers just as it always has.”

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About the Author(s)

Kelly Teal

Contributing Editor, Channel Futures

Kelly Teal has more than 20 years’ experience as a journalist, editor and analyst, with longtime expertise in the indirect channel. She worked on the Channel Partners magazine staff for 11 years. Kelly now is principal of Kreativ Energy LLC.

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