Broadcom's Strategies Incorporating VMware Cloud Foundation 9.0
In a significant move, Broadcom, under its new leadership, has released the highly anticipated VMware Cloud Foundation 9.0 (VCF 9.0). Steve McDowell, senior analyst at Nand Research, hails this as "a critical step in Broadcom's strategy post-acquisition to consolidate VMware as the central platform for private and hybrid cloud infrastructures."
VCF 9.0 comes packed with numerous features designed to streamline infrastructure and developer workflows. These include a central control interface, a public-cloud-like usage model with self-service and API automation, GPU services, confidential computing, and Kubernetes-native tools for AI workloads. Integrated security dashboards and compliance checks, real-time cost analyses, and capacity optimization are also part of the package.
Broadcom claims that vSAN deduplication, which reduces Total Cost of Ownership (TCO) by up to 34%, and memory-tiering, which can reduce costs by up to 38%, are key benefits of VCF 9.0. Additionally, NSX Enhanced Data Path offers higher data rates in AI pipelines.
However, the implementation of VCF 9.0 is not without its challenges, according to Brad Tompkins, CEO of the VMware User Group (VMUG). He emphasises that aligning people and processes, not technology, is the real challenge when implementing VCF.
Broadcom's financial health seems robust, with the company reporting revenue of $15 billion for the second quarter of fiscal year 2025, up 20% from the previous year, and net income of $4.95 billion, up 124%.
VMware Explore 2025, scheduled for August 25-28 in Las Vegas, is set to provide customers with tools and strategies to tackle cloud complexity, AI implementation, and security requirements. The event is expected to attract significantly more European participants due to the cancellation of the Barcelona event.
At VMware Explore 2025, Tan's keynote will showcase the latest innovations in private cloud, private AI, and application deployment alongside VMware experts. Many customers have high expectations for Broadcom at the event, including lower prices, less restrictive licensing models, and extended support for expired contracts.
Despite recent strained customer relationships, such as sending cease-and-desist letters to holders of VMware perpetual licenses whose support contracts have expired and a legal battle with Siemens over support and licensing issues, Broadcom has already published VCF 9.0 on June 17, marking the first real publication under Broadcom's leadership.
87% of the top 10,000 VMware customers have already subscribed to the VMware Cloud Foundation bundle (VCF). Many VMUG members have evaluated alternatives and concluded that vSphere is hard to beat, so they remain with VMware and focus on VCF.
Broadcom's strategy is to transition customers from perpetual licensing to subscriptions and ensure they pay for the full private cloud platform. Their pitch for VCF is that it enables customers to run a modern, virtualized, high-performance, and heavily automated cloud in their own data center.
With VCF 9.0, Broadcom is positioning itself as a key player in the consolidation of private and hybrid cloud infrastructures. The upcoming VMware Explore 2025 promises to be a significant event in this journey, offering insights into how Broadcom plans to meet customer expectations and navigate the challenges ahead.
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