"IBM has announced it will stop marketing its VMware on IBM Cloud service to new customers. In a notice posted on Tuesday, Big Blue explains "Effective 31 October 2025, IBM Cloud will no longer sell VMware on IBM Cloud offerings to customers who do not have at least one active VMware Workload running on IBM Cloud before that date." IBM says the decision is necessary due to Broadcom's licensing plans."
"That's probably a reference to the VMware licensing change Broadcom announced in August and which requires those who use Virtzilla's wares in in a hyperscale environment to acquire their licenses directly from Broadcom, instead of from their preferred cloud operator. Broadcom made that change because it now offers bring-your-own licensing that allows customers to acquire rights to use VMware software and apply them on-prem or across multiple supported clouds."
"Big Blue says existing customers "may continue to use and expand their VMware environments" but won't be able to order a cloudy VMware offering beyond those they already use. Customers of IBM's VMware Cloud Foundation (VCF) as a Service offering will also be unable to expand workloads to new regions or resource pools or move between on-demand and reserved consumption models."
IBM will stop selling VMware on IBM Cloud to new customers who do not have at least one active VMware workload on IBM Cloud before 31 October 2025. IBM attributes the restriction to changes in Broadcom's VMware Cloud Services Provider (VCSP) partner program that prevent IBM from selling VMware licenses to customers lacking preexisting workloads. Broadcom now offers bring-your-own licensing so customers acquire VMware rights directly from Broadcom for on-premises or multi-cloud use. Other hyperscale providers continue to recruit new VMware customers. Existing IBM customers may expand current environments but cannot order new cloud VMware offerings or expand VCF as a Service to new regions or consumption models. VMware still lists IBM as a hyperscale partner, and IBM does not appear in Gartner's top IaaS provider rankings.
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