Another company has publicly cut ties with Broadcom's VMware. This time, it's Ingram Micro, one of the world's biggest IT distributors. The announcement comes as Broadcom eyes services as a key part of maintaining VMware business in 2025. But even as some customers are reducing reliance on VMware, its trillion-dollar owner is laughing all the way to the bank.

IT distributor severs VMware ties

Ingram is reducing its Broadcom-related business to "limited engagement with VMware in select regions," a spokesperson told The Register this week.

"We were unable to reach an agreement with Broadcom that would help our customers deliver the best technology outcomes now and in the future while providing an appropriate shareholder return,” the spokesperson said.

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Broadcom will no longer take VMware's biggest 2,000 customers directly. Instead, it will work with VMware's 500 biggest customers, giving channel partners the opportunity to participate in deals and provide additional value for VMware customers. The reversal is being viewed as an effort from Broadcom to discourage migrations from VMware, but there's skepticism around how much impact it will truly have.

Various customers have lamented the changes that succeeded Broadcom buying VMware about a year ago. Controversial moves have included ending perpetual license sales, bundling VMware products into a smaller number of SKUs, and ending VMware's channel partner program. These changes have led some firms to consider reducing their business with VMware.

This week, for example, UK-headquartered cloud operator Beeks Group said that a 1,000 percent increase in VMware costs led to it moving most of its 20,000-plus virtual machines to OpenNebula. And numerous customers that Ars Technica has spoken with in the last year are seriously researching or planning total or partial VMware migrations.

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Companies have been discussing migrating off of VMware since Broadcom’s takeover a year ago led to higher costs and other controversial changes. Now we have an inside look at one of the larger customers that recently made the move.

According to a report from The Register today, Beeks Group, a cloud operator headquartered in the United Kingdom, has moved most of its 20,000-plus virtual machines (VMs) off VMware and to OpenNebula, an open source cloud and edge computing platform. Beeks Group sells virtual private servers and bare metal servers to financial service providers. It still has some VMware VMs, but “the majority” of its machines are currently on OpenNebula, The Register reported.

Beeks’ head of production management, Matthew Cretney, said that one of the reasons for Beeks' migration was a VMware bill for “10 times the sum it previously paid for software licenses,” per The Register.

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