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Data Center News > Blog > Global Market > IBM won’t sell VMware to new cloud customers
Global Market

IBM won’t sell VMware to new cloud customers

Last updated: October 29, 2025 10:54 pm
Published October 29, 2025
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“Issues are fairly simple for the managed cloud possibility — there are two apparent decisions. Firms can go together with IBM and Crimson Hat, or select VMware,” he mentioned, noting that whereas the corporate has been a giant VMware reseller, “IBM needed to ask themselves, ‘How are we going to compete so efficiently with them if we’re companions?’”

Broadcom has offered that impetus for change with its enforced adjustments to licensing. 

“It’s not a one-on-one battle,” mentioned Governor. “IBM can’t compete characteristic for characteristic.” However there will probably be alternatives in several areas, he mentioned. “We are able to see a Java battle, a container battle, in addition to a cloud battle.”

With its OpenShift resolution, IBM received’t offer a whole alternative of VMware: “It’s not going to be a turnkey possibility,” he mentioned. However he identified that, because of its use of OpenShift, IBM might supply sufficient of a substitute for the costly licensing calls for from Broadcom.

Core licensing calls for

Whereas Broadcom’s new VCF license calls for will have an effect on IBM, different companions will probably be hit more durable, Howarth mentioned. 

“Broadcom are asking for no less than 3,600 cores — that’s a requirement that’s going to hit a few of the smaller cloud suppliers,” he mentioned.

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See also  FinOps Foundation sharpens FOCUS to reduce cloud cost chaos
TAGGED: cloud, Customers, IBM, Sell, VMware, wont
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