IBM discontinues sales of VMware on IBM Cloud

IBM has announced the end of sales for VMware on IBM Cloud. As the company announced in a status update, Big Blue will no longer sell new VMware licenses to customers without active VMware workloads on IBM Cloud starting October 31, 2025.

For existing customers with VMware installations already running, little will change initially. However, VCF-as-a-Service customers can no longer expand into new regions or resource pools. According to the official FAQ, existing users can port their VMware licenses under Broadcom's new Bring-Your-Own-License program, meaning they can switch to other platforms with their existing license keys. New customers, on the other hand, will no longer have the option to start VMware workloads on the IBM Cloud platform after the cut-off date.

The decision is in the context of fundamental changes in the VMware partner model following its acquisition by Broadcom. The chip giant acquired the virtualization company in 2023 and subsequently restructured the partner program. Unlike other hyperscalers such as AWS, Microsoft Azure, Google Cloud, and Oracle Cloud—which are continuing their VMware offerings in a new form—IBM has now opted for a more radical cut.

For companies running VMware workloads on IBM Cloud, the question of alternatives immediately arises. However, IBM does not mention any concrete migration paths or successor solutions in the announcement. Internally, IBM could offer its OpenShift portfolio from Red Hat, which can serve as a direct alternative to Broadcom's VCF.

(fo)