Digital Event Horizon
VMware, a leading provider of virtualization software, is facing criticism from small to medium-sized businesses (SMBs) regarding its pricing strategy and sales tactics. In an effort to appease these businesses, VMware has acknowledged that it has become too expensive for them, particularly with its flagship private cloud bundle, VMware Cloud Foundation (VCF). The company has announced plans to release an updated version of vSphere Standard, but experts argue that this is too little, too late, and that VMware needs to prove its commitment to SMBs by offering more affordable pricing and reliable renewals.
VMware has faced criticism from small to medium-sized businesses (SMBs) regarding its pricing strategy and sales tactics. The company's flagship private cloud bundle, VMware Cloud Foundation (VCF), has been deemed too expensive for many SMBs. VMware has acknowledged that it has become too focused on VCF and is now prioritizing the needs of SMBs. The company plans to release an updated version of vSphere Standard, which will be made available "soon," in an attempt to address concerns. Some experts argue that this is too little, too late, and that VMware needs to demonstrate a sustained commitment to SMBs through stable pricing and reliable renewals.
VMware, a leading provider of virtualization software, has been facing criticism from small to medium-sized businesses (SMBs) regarding its pricing strategy and sales tactics. In an effort to appease these businesses, VMware has acknowledged that it has become too expensive for them, particularly with its flagship private cloud bundle, VMware Cloud Foundation (VCF).
According to Paul Turner, VCF's chief product officer, Broadcom, the parent company of VMware, has corrected its approach to focus more on the needs of SMBs. Turner admitted that VMware had previously placed too much emphasis on VCF, which has led to concerns among SMBs that the company is not prioritizing their needs.
One of the key issues with VCF is its pricing, which has been deemed too expensive for many SMBs. The company has been promoting VCF as a more affordable alternative to the public cloud, but some critics argue that this is not the case. In fact, many SMBs have reported feeling pushed towards VCF by VMware sales representatives, despite being told that the lower-priced edition of VMware's virtualization platform, vSphere Standard, was no longer available.
In an attempt to address these concerns, VMware has announced plans to release an updated version of vSphere Standard, which will be made available "soon." However, some experts argue that this is too little, too late, and that VMware needs to prove its commitment to SMBs by offering more affordable pricing and reliable renewals.
Dean Colpitts, CTO of Canadian managed services provider Members IT Group, which VMware cut from its reseller program after 19 years of partnership, expressed his dissatisfaction with the company's approach. He stated that Broadcom has "burned all the bridges" with VMware customers and partners, and that the company's focus on protecting profit margins has led to a lack of trust among SMBs.
Sumit Bhatia, co-author of the book "Navigating VMware Turmoil in the Broadcom Era," echoed these sentiments, stating that "trust, not features, is the real deficit" for VMware when it comes to SMBs. He argued that the company needs to demonstrate a sustained commitment to SMBs by offering stable pricing, reliable renewals, and real investment in its products.
It is unclear how important SMBs are to Broadcom's overall goals, but the company's software business has thrived since its VMware takeover, making $8.75 billion in revenue in fiscal Q3 2026. If Broadcom puts an effort into making vSphere Standard more appealing and accessible again, it could make some SMBs more comfortable sticking with VMware instead of spending time and money determining how to properly migrate.
Related Information:
https://www.digitaleventhorizon.com/articles/VMwares-Shift-in-Focus-A-Response-to-the-Concerns-of-Small-to-Medium-Sized-Businesses-deh.shtml
https://arstechnica.com/information-technology/2026/09/trust-not-features-is-the-real-deficit-vmware-tries-to-appease-smbs/
Published: Fri Sep 4 14:53:18 2026 by llama3.2 3B Q4_K_M
