If you are still running on VMware today, you do not necessarily have a bad platform. But if you are still running on VMware tomorrow without a concrete migration plan, you have a strategic problem. Broadcom has rewritten the rules: unilaterally, definitively, and with little empathy for the customers who stayed loyal for years. I do not want to turn this into a lament about Broadcom, though. I want to explain why this is the ideal moment to make a decision you might otherwise keep postponing for years.
When Broadcom closed its acquisition of VMware, everyone in the industry knew something was going to change. Have we already forgotten what happened to Symantec, among others? Broadcom bought Symantec’s enterprise unit in 2019, narrowed it to around 2,000 of the largest accounts (the Global 2000), and raised prices on most of the rest. VMware is the same script on a bigger stage. The only surprise was how fast it came. In short order, perpetual licenses were scrapped, thousands of cloud partners (Cloudar among them) received a termination letter, and a catalogue of over 8,000 SKUs was reduced to two bundles (VMware Cloud Foundation and VMware vSphere Foundation). The shift from per-CPU-socket licensing to per-physical-core licensing also meant that organizations expecting to simply carry on with an existing installation were suddenly facing invoices two to five times higher.
But those cost increases are relative. The real impact only lands on 11 October 2027, when general support for VCF 8 ends. By that date, every VMware customer has to either migrate to VCF 9 at the new (read: higher) prices and under the new model, or be shown the back door and leave the platform behind.
Not deciding is also a decision
Big decisions like this get postponed fast. Or, in the alternative: you do not decide, and you take the hit. I understand the reflex. Migrations are complex. Infrastructure is critical. You do not want to take risks with production environments. And maybe you are thinking Broadcom will course-correct once the pressure builds. I do not want to give you false hope. By now there is plenty of evidence that Broadcom has no intention of changing course. The messaging is consistent, prices have not come down, and contract negotiations follow a tight, inflexible script.
More importantly, the migration window shrinks every month. A phased, carefully prepared migration of enterprise workloads takes two to three years in practice. If you only start evaluating in 2026, you have almost no room for a calm, controlled execution. The result of waiting too long is not that you end up with more options. It is that you are forced to choose between an expensive rushed migration and an extension with Broadcom at prices you do not actually want to pay. Everyone wins, except the end customer.
And if you are going to migrate anyway, why not move to another on-premises hypervisor? It might look like the most logical step. Nutanix, Proxmox, Microsoft Hyper-V: there are alternatives that keep the virtualization layer intact.
My answer is a nuanced one. For certain workloads with strict data-residency requirements or specific latency constraints, on-premises can remain relevant. But for most companies, switching to another hypervisor is only a stopgap. You solve the price increase, but you keep working with the same operational model. You still manage hardware, license renewals, capacity planning, and the staffing overhead that comes with all of it. On top of that, you trade one vendor dependency for another.
Staying on-premises carries a second problem beyond the licensing model. Hardware is becoming a scarce commodity, and so is datacenter floor space. Prices are going through the roof, and supply is no longer guaranteed.
AWS offers something structurally different: the option to move away from the virtualization layer over time. And getting there is no longer a leap of faith. If you want the smallest possible change on day one, Amazon Elastic VMware Service (Amazon EVS) runs VMware Cloud Foundation directly inside an Amazon VPC in your own AWS account, so the same vSphere, vSAN and NSX stack your team already operates lands on AWS without a re-architecture. If you would rather leave the hypervisor behind right away, AWS Transform MGN (formerly AWS Application Migration Service) replicates your virtual machines block by block and cuts them over to Amazon EC2 with minimal downtime, while AWS Transform for VMware automates the unglamorous parts: discovery, dependency mapping, network conversion, and right-sizing the target instances. The two paths trade off differently. Amazon EVS keeps your VMware stack intact, and with it the VMware licensing, but moves it off your own hardware and onto AWS as the fastest possible landing. The MGN route leaves the hypervisor, and the VMware license, behind outright. Either way your teams keep their existing way of working and do not have to relearn everything on day one.
That is the floor, not the ceiling. Once a workload runs on AWS you can modernize it on its own timeline, and only where the business case justifies it: move a self-managed database onto Amazon RDS or Amazon Aurora, lift a tier of servers into containers on Amazon ECS or Amazon EKS, replace a scheduled job with an AWS Lambda function, and reach for managed AI through Amazon Bedrock. None of that is realistic to run well on-premises, or it is simply too expensive to operate yourself. A like-for-like hypervisor swap does not get you here: it can lower the licensing bill, but the operational model and the eventual modernization are left untouched. Moving to AWS is the option where the immediate fix and the longer-term path share one destination.
We have been doing this at Cloudar for 12 years, and a lot of those conversations reveal the same pattern. At some point an organization made a sound technology choice. And today they find that the choice is holding them in a situation they can no longer defend, or no longer want to. VMware was an excellent choice for years. It was stable, well documented, broadly supported. But the lesson of the Broadcom acquisition is that vendor lock-in is not an abstract technical concern. It is a concrete business risk that, sometimes only after ten or fifteen years, shows up as something you simply have no alternative to.
Moving to AWS does not make that problem disappear entirely, of course. Every major cloud provider has its own ecosystem and its own logic. But the nature of the dependency changes fundamentally. In the cloud you pay for what you use, and you can decide workload by workload how and where you run it. The technical architecture of cloud-native services (open standards, open containers, open APIs) lets you switch when you want. That is structurally different from proprietary hypervisor software with a binary licensing logic. It lets you design with a solid exit scenario built in from the start.
Start with insight, then migrate in phases
Migrations rarely fail on the technology. They fail through a lack of preparation, unclear priorities, and too little attention to the human side of the process. The first step every organization should take is insight: which workloads are you running, what are the dependencies, and what is the real cost of your current VMware installation versus the alternatives? Only once that is clear can you make a rational decision. The tooling to get there has matured: AWS Transform for VMware can inventory a vSphere estate and map its dependencies automatically, and AWS Migration Hub tracks the moves once they start. A Migration Readiness Assessment that used to take months is now achievable in a few weeks.
This is where AWS has invested most visibly. AWS Transform, its agentic migration service, puts AI agents on the parts of a migration that used to eat months of consultant time: discovery, dependency mapping, wave planning, and network conversion, with the actual rehost driven through AWS Transform MGN. It is not VMware-only either; the same agents cover Windows and .NET modernization and mainframe workloads. AWS reports discovery that once took a quarter compressing to about a week, and landing-zone networking provisioned up to 70 percent faster. None of that removes the need to start early. It does mean the preparation that scared you off a year or two ago is no longer the bottleneck it was.
AWS can help fund a lot of this work through the Migration Acceleration Program (MAP). The assessment phase produces a workload inventory, a dependency map, and a costed business case, all of which are yours to keep, whichever direction you choose afterwards. For projects with a strong enough case, MAP can also offset a meaningful share of the migration cost itself. A migration partner runs the assessment and unlocks that funding on your behalf, which is the role we play at Cloudar.
The approach we recommend is phased. Start with the most portable workloads on Amazon EC2, which immediately eliminates the VMware license cost, then replatform workload by workload to AWS-native services as the business case justifies it. And in the meantime, put all new VMware deployments on ice. Every new workload you still put on VMware today is a workload you will have to migrate again later.
What I want to leave you with is this. The best migrations are the ones you carry out when you have the time and the space to do them well. You still have that time and space now, but the clock is ticking. As I write this, there are 467 days left until 11 October 2027. That may sound like a lot…
