The News: VMware has dramatically simplified VMware Aria, now fully integrating it as part of the VMware Cloud Foundation. Read the full announcement on the VMware website.
VMware Aria: Broadcom’s Strategic Move and Its Market Implications
Analyst Take: In a move signaling a seismic shift in the infrastructure market, Broadcom, following its acquisition of VMware, has decided to sunset a substantial 56 VMware products and platforms. This drastic measure reflects Broadcom’s aggressive strategy to streamline VMware’s offerings and pivot toward high-value corporate clients. This decision comes amidst predictions of a “tectonic shift” in the infrastructure market, as analysts and investors closely monitor the repercussions.
What Has VMware Announced
Broadcom’s decision to consolidate VMware’s product suite, including the termination of perpetual licenses and the shift to subscription models, has left the market and VMware’s customer base in a state of upheaval. Key products such as NSX, HCX, and vSPhere+ are among those being discontinued. This move, aimed at simplifying VMware’s portfolio, is part of a broader strategy to focus on core technologies and subscription-based models. Despite the uproar, Broadcom insists that this is a strategic simplification, offering the best subscription products to fit customer needs at the time of renewal.
The restructuring has had a significant impact on the market. Investment analysts, like Jason Adar of William Blair, suggest that companies like Nutanix could benefit by filling the void left by VMware’s repositioning. Broadcom’s strategy has also led to the sale of VMware’s end-user computing units, including Workspace ONE and Horizon, for a reported $5 billion.
Amidst these changes, VMware introduced a simplification of its product portfolio in December 2023. The focus has now shifted to two core offerings: VMware Cloud Foundation and the new VMware vSphere Foundation. The former is an enterprise-class hybrid cloud solution, while the latter integrates vSphere with intelligent operations management for mid-sized and smaller customers.
VMware Aria, the cloud management solution, is now fully incorporated into VMware Cloud Foundation, enhancing the delivery, adoption, and management of VMware Cloud Foundation capabilities. This integration signifies a strategic consolidation of VMware’s offerings to simplify customer deployment and management.
How Does This Impact Tanzu for Developers?
Developer portals are instrumental in shaping the landscape of internal developer platforms, serving as key gateways for developers to access resources, documentation, and tools. In the Tanzu Application Platform (TAP) context, Backstage, an open framework designed for constructing developer portals, has played a pivotal role. Its historical significance within TAP highlights its contribution to streamlining developer workflows and enhancing collaboration within the platform.
During a conversation with Betty Junod, Vice President of Marketing, Modern Apps and Management Business Group, her insights were shared regarding VMware Aria Operations for Applications. This platform stands out as a unified observability solution, offering comprehensive visibility across the entire stack by utilizing metrics, traces, and logs. Additionally, Tanzu Insights, powered by explainable AI/ML, provides valuable insights for troubleshooting within Kubernetes, AWS, and Azure environments. These insights are seamlessly integrated into VMware Aria Hub and Graph, further enriching the operational capabilities of the Tanzu ecosystem.
The interplay between developer portals, exemplified by Backstage, and the advanced observability and troubleshooting capabilities of VMware Aria Operations for Applications and Tanzu Insights illustrates a holistic approach to enhancing the efficiency and functionality of internal developer platforms, particularly within the Tanzu Application Platform.
Looking Ahead
Under Broadcom’s leadership, the future of VMware seems geared toward a more focused, streamlined approach, emphasizing subscription-based models and core product offerings. This strategic shift aligns with broader market trends toward cloud-based solutions and subscription models, indicating a potential increase in market competitiveness. However, the success of this transition hinges on how well Broadcom can integrate these changes without alienating VMware’s existing customer base and how it positions itself against emerging market challenges.
As VMware embarks on this new journey, the industry watches closely to see how these changes will redefine the landscape of cloud infrastructure and management. The integration of Aria into VMware’s core offerings suggests a commitment to simplifying and enhancing customer experience in the cloud era. The future may hold further consolidation and streamlining as Broadcom continues to reshape VMware’s role in a rapidly evolving market.
Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.
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Author Information
At The Futurum Group, Paul Nashawaty, Practice Leader and Lead Principal Analyst, specializes in application modernization across build, release and operations. With a wealth of expertise in digital transformation initiatives spanning front-end and back-end systems, he also possesses comprehensive knowledge of the underlying infrastructure ecosystem crucial for supporting modernization endeavors. With over 25 years of experience, Paul has a proven track record in implementing effective go-to-market strategies, including the identification of new market channels, the growth and cultivation of partner ecosystems, and the successful execution of strategic plans resulting in positive business outcomes for his clients.
Regarded as a luminary at the intersection of technology and business transformation, Steven Dickens is the Vice President and Practice Leader for Hybrid Cloud, Infrastructure, and Operations at The Futurum Group. With a distinguished track record as a Forbes contributor and a ranking among the Top 10 Analysts by ARInsights, Steven's unique vantage point enables him to chart the nexus between emergent technologies and disruptive innovation, offering unparalleled insights for global enterprises.
Steven's expertise spans a broad spectrum of technologies that drive modern enterprises. Notable among these are open source, hybrid cloud, mission-critical infrastructure, cryptocurrencies, blockchain, and FinTech innovation. His work is foundational in aligning the strategic imperatives of C-suite executives with the practical needs of end users and technology practitioners, serving as a catalyst for optimizing the return on technology investments.
Over the years, Steven has been an integral part of industry behemoths including Broadcom, Hewlett Packard Enterprise (HPE), and IBM. His exceptional ability to pioneer multi-hundred-million-dollar products and to lead global sales teams with revenues in the same echelon has consistently demonstrated his capability for high-impact leadership.
Steven serves as a thought leader in various technology consortiums. He was a founding board member and former Chairperson of the Open Mainframe Project, under the aegis of the Linux Foundation. His role as a Board Advisor continues to shape the advocacy for open source implementations of mainframe technologies.
