VMware licensing costs push 90% of users to seek alternatives

According to Ars Technica, licensing costs are prompting 90 percent of VMware users to look at alternative virtualization approaches. The reporting cites a Rimini announcement showing growing interest in multi-hypervisor and hybrid configurations, and it notes analyst commentary that many organizations want to reduce dependence on a single vendor.

What the survey and analysts found

Rimini reported a number of specific trends that reflect how organizations are rethinking VMware use. Sixty percent of respondents are considering a multi-hypervisor strategy, and 47 percent said they favor a hybrid IT virtualization approach that mixes hypervisors and containers for what the announcement described as "best of both worlds" workload placement. Rimini also said 48 percent of those surveyed do not plan to move any assets to VMware's Cloud Foundation.

Ars Technica also cites analyst context. Tony Harvey, a senior director analyst at Gartner, framed the situation as a response to Broadcom’s acquisition, saying many clients view the change as a wake-up call about relying on a single vendor. Gartner itself said in its recent work that the share of enterprises doing proofs of concept for alternative distributed hybrid infrastructure is expected to rise to 55 percent by 2029, up from 25 percent in 2026. Joe McKendrick, lead analyst at Unisphere Research, summed up the mood by saying the findings reflect efforts to "reduce dependency on a single provider" and to modernize on terms that fit each organization.

Why this matters for small organizations and public teams

The survey findings are relevant whether you run a small business, a nonprofit, or a public sector IT team. The shift toward multi-hypervisor and container-friendly designs is about more than technology: the announcements emphasize flexibility, operational efficiency, and cost control. If licensing costs are affecting your budget or vendor terms are changing after an acquisition, it is reasonable to explore whether a different mix of on-premises, private cloud, public cloud, and alternate hypervisors could serve your workloads more economically.

Options organizations are weighing

The reports identify a few clear directions organizations are considering:

• Multi-hypervisor environments, to avoid single-vendor lock-in and to match specific hypervisors to particular workloads (Rimini).
• Hybrid environments that combine traditional hypervisors with containers for workload placement flexibility (Rimini).
• Staying off VMware Cloud Foundation entirely, with 48 percent of respondents saying they do not plan to move assets there (Rimini).
• Running proofs of concept for alternative hybrid infrastructure products, a trend Gartner expects to grow through 2029.

These are strategic choices, not instant fixes. The announcements emphasize phased transitions that balance existing systems with new investments.

VMware licensing costs: practical steps you can take now

If licensing pressure or vendor changes are a concern for your organization, here are practical steps that follow from the survey findings and analyst advice:

• Inventory current workloads and licenses, and note renewal dates and costs so you can compare scenarios objectively.
• Identify a small set of low-risk workloads to use for proofs of concept with another hypervisor or container platform.
• Evaluate multi-hypervisor approaches where different platforms run different workload types, rather than a full rip-and-replace.
• Consider container adoption where it makes sense for portability and density, while retaining hypervisors for systems that need them.
• Negotiate renewal terms with vendors while you run comparisons; use proof-of-concept results to inform those talks.
• Plan migrations in phases and keep backups and rollback plans to preserve continuity for mission-critical systems.

These steps are general good practice; use them as a checklist rather than a strict migration plan.

How to decide what to do next

Start with a facts-based review: gather license and cost data, list critical workloads, and map dependencies. Run small proofs of concept for alternative hypervisors or container platforms before committing to a broad change. Keep stakeholders informed about the timing and risks, and factor in operational and support implications, not just licensing fees.

If you want help scoping a proof of concept, evaluating alternative hypervisors, or building a phased migration plan that balances cost and continuity, contact our team to discuss options at /contact.html.

The reporting by Ars Technica and the numbers Rimini and Gartner provided show many organizations are already on this path. That makes now a practical moment to check whether your virtualization approach still matches your budget and operational needs.