VMware Plans a vSphere Standard Update as SMB Trust Wanes
VMware is preparing an updated vSphere Standard release, but pricing, licensing, and damaged customer trust remain major obstacles among SMBs.
VMware is preparing an updated version of vSphere Standard as Broadcom attempts to address concerns from small and medium-sized businesses that have found the company’s virtualization products increasingly expensive or difficult to buy.
The planned release could give smaller customers an alternative to VMware Cloud Foundation (VCF), the flagship private cloud bundle Broadcom has emphasized since acquiring VMware. However, former partners, customers, and industry observers argue that restoring access to a lower-cost product will not be enough on its own. The larger challenge is rebuilding confidence in VMware’s pricing, licensing, and long-term commitment to the SMB market.
Broadcom’s VCF focus created problems for smaller customers
After Broadcom acquired VMware, the company ended perpetual license sales and moved toward subscription-based bundles. For many SMBs, those bundles combined higher costs with products and capabilities they did not need.
VCF has been central to Broadcom’s VMware strategy. It is positioned as a private cloud platform, but its scope and price have made it a poor fit for some smaller organizations seeking straightforward server virtualization.
Customers have also reported online that VMware sales representatives continued steering them toward VCF. Some said they were told that vSphere Standard, the less expensive edition of VMware’s virtualization platform, was no longer available.
Paul Turner, chief product officer for VCF, told The Register that Broadcom’s sales incentives had encouraged the sales organization to promote VCF. He said the company had corrected the issue and acknowledged that VMware sometimes placed too much emphasis on its flagship bundle.
An updated vSphere Standard is coming
VMware plans to release an updated version of vSphere Standard “soon,” according to The Register. Ram Velaga, president of Broadcom’s Infrastructure Software Group, indicated that more details would likely be shared during VMware’s Explore conference in Frankfurt in October.
The update would address a notable gap in VMware’s product lineup. vSphere Standard has not received an update since 2022, even though a newer version of vSphere arrived as part of VCF 9 in 2025.
Turner said VMware had prioritized security improvements for VCF. Velaga also explained that the company concentrated on VCF to promote private clouds as a more affordable alternative to public cloud services. In Broadcom’s view, introducing a lower-end virtualization product at the same time could have distracted customers from that strategy.
For SMBs, however, the lack of attention to vSphere Standard contributed to uncertainty over whether VMware still wanted their business. A refreshed edition could provide a more practical path for organizations that need core virtualization features without adopting the broader VCF stack.
Customers and former partners remain skeptical
A new product release may not quickly reverse the reputational damage caused by licensing changes, sales practices, and channel restructuring.
Dean Colpitts, chief technology officer of Canadian managed services provider Members IT Group, told Ars that his company is no longer doing VMware business and does not plan to resume. VMware removed the provider from its reseller program after a 19-year partnership.
Colpitts said Broadcom had “burned all the bridges,” arguing that customers and channel partners could no longer trust the company. Although moving from vSphere 8 to a new Standard edition might be relatively easy, he said the previous treatment of customers and partners remained the more significant issue.
Similar reactions have appeared in online discussions. One Reddit user summarized the response as: “Too little, too late. We’ve moved on.” Meanwhile, VMware competitors have been actively pursuing dissatisfied users and partners, with SMBs representing an especially relevant target.
Pricing and licensing may matter more than features
Sumit Bhatia, co-author of Navigating VMware Turmoil in the Broadcom Era, said the planned update shows that Broadcom has heard market criticism. But he noted that years of limited attention, quote refusals, and VCF-focused selling have already pushed some SMBs toward alternatives including Nutanix, Proxmox, and Microsoft Hyper-V.
In Bhatia’s assessment, VMware’s central problem is not a lack of features but a lack of trust. He said Broadcom would need to demonstrate a sustained commitment to smaller customers through stable pricing, dependable renewals, and continued investment.
Bhatia outlined several changes that could make an updated vSphere Standard more credible to SMB buyers:
- Predictable, publicly available pricing without unexpected renewal increases
- A capped-term or perpetual-style licensing option
- Access to core capabilities such as vSphere vMotion, vSphere High Availability, and backup integration without additional upsell barriers
- Simpler per-socket licensing rather than per-core minimums designed for hyperscale environments
Without those safeguards, customers may worry that favorable initial terms could change after they have invested in the platform and face substantial switching costs.
Broadcom must show whether SMBs are a lasting priority
It remains uncertain how important smaller VMware customers are to Broadcom’s broader plans. The company’s software business generated $8.75 billion in revenue during fiscal Q3 2026, representing a 29 percent year-over-year increase. That performance suggests Broadcom’s software strategy has been financially successful since the VMware acquisition.
Still, a more accessible vSphere Standard could benefit customers that would prefer to remain with VMware rather than spend time and money planning a migration. The release itself will be only the first test. Pricing, availability, renewal practices, and support for partners will determine whether SMBs view the product as a dependable long-term option.
Conclusion
VMware’s planned vSphere Standard update may restore a missing choice for smaller organizations that do not need VCF. Yet the response from former partners and customers shows that product availability alone will not resolve the underlying concern. Broadcom will need to pair the release with clear pricing, practical licensing, and consistent treatment of SMB customers if it wants to rebuild confidence.
Attribution: Original reporting by Ars.
Originally reported by Ars.