"The document notes that as of 2024 VMware dominated the server virtualization market with over 96 percent of revenue share, and that none of its rivals can completely match the capabilities of Virtzilla's stack. But Gartner feels "many" of its clients are sufficiently upset by Broadcom's actions, which have usually seen VMware customers' software costs rise 300 to 400 percent, that they have lost trust in the virtualization pioneer and are ready to "explore alternatives for current and/or future infrastructure requirements.""
"Broadcom's acquisition of VMware - and subsequent decision to focus its efforts on a broad public cloud platform - is the reason for the shifting market. "Any significant change to an existing server virtualization platform would also take time and effort, but to generate business benefit, it must include reducing technical debt and application modernization as part of the process," the market guide states, before urging heads of infrastructure and operations to "create an exit plan from their existing hypervisor vendor, now.""
Broadcom's acquisition of VMware and its shift toward a broad public cloud platform have triggered major disruption in the server virtualization market. VMware held over 96 percent of revenue share in 2024, and rivals cannot fully match its stack capabilities. Many VMware customers report software-cost increases of 300–400 percent and express loss of trust, concern about support quality, and dissatisfaction with product roadmaps. Customers are increasingly exploring alternative virtualization platforms and infrastructure modernization. Any migration will require time, effort, reduction of technical debt, and application modernization. Infrastructure leaders are advised to develop exit plans from current hypervisor vendors.
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