Is the Alarming Drop in VMware Explore 2025 Attendance a Terrible Sign for Business?

Are Broadcom’s Controversial VMware Changes Creating an Unbeatable Opportunity for Competitors?

Recent developments concerning VMware, now owned by Broadcom, indicate major shifts within the company that have created waves of concern. The company’s main event, VMware Explore 2025, saw a dramatic fall in attendance, while a unique change to its software licensing for submarines highlights broader adjustments to its business model. These events are not isolated; they are direct results of the new direction set by Broadcom, leaving many customers and partners wondering about the future.

The Quiet Halls of VMware Explore 2025

Every year, companies host large events to meet customers, show off new products, and build relationships. For VMware, this event is called Explore. It is usually a busy place filled with thousands of people from the tech world. However, the event held in Las Vegas from August 25 to 29, 2025, was very different. Reports from the conference painted a picture of a surprisingly empty venue.

The number of people who came was said to be less than a quarter of what it used to be. Instead of the usual crowd of over 20,000 people, estimates suggest only 2,500 to 5,000 were there. This small number of attendees was noticeable. The large halls of the Venetian Hotel felt deserted. Corridors were quiet, and sessions that were planned for big audiences took place in nearly empty rooms. The area for exhibitors, where other companies pay to set up booths and talk to potential customers, was described as “yawningly empty.”

This was a major problem for the event’s sponsors. Big companies like Microsoft, Google Cloud, and Amazon Web Services (AWS) had paid a lot of money to be there. They sponsor these events hoping to make important connections with customers. According to reports, these sponsors were very disappointed. They found themselves waiting at their booths with very few people to talk to. The lack of customer discussions was a significant blow. Interestingly, another major company in the VMware world, Veeam, decided not to attend or sponsor the event at all. This decision seems wise in hindsight, as they avoided the costs and disappointment faced by other sponsors. The low turnout was a clear sign that something was wrong.

The Root Cause: Broadcom’s New Strategy

The emptiness at VMware Explore 2025 was not a random event. It was a direct consequence of the new policies put in place after Broadcom bought VMware. These changes have shaken the foundation of VMware’s relationships with its customers and partners.

One of the biggest changes was a complete overhaul of VMware’s partner program. For years, VMware became a major company with the help of thousands of small and medium-sized partners. These partners sold and supported VMware products around the world. Broadcom, however, ended its agreements with a vast number of these partners. Laura Falko, who leads Broadcom’s global partner program, explained the move by saying they removed partners who “clogged up our ecosystem.” This statement was seen as disrespectful to the very partners who helped make VMware successful. They were not just removed from the program; they felt insulted in the process.

At the same time, customers faced their own set of challenges.

Forced Subscriptions

Customers were pushed from buying permanent software licenses to paying for yearly or multi-year subscriptions. This change fundamentally alters how they budget for and manage their software.

Massive Price Hikes

Along with the switch to subscriptions, many customers were hit with enormous price increases. These were not small adjustments but significant hikes that strained IT budgets and created widespread frustration.

Complex Bundling

Products that were once available separately are now often sold only as part of large, expensive bundles. Customers are forced to buy more than they need, which further increases their costs.

This new business approach, focused on maximizing profit from the largest customers, has created a toxic environment. Customers feel trapped by contracts and angered by rising costs. Partners feel betrayed after being cast aside. This growing dissatisfaction was the real reason so few people were enthusiastic about attending VMware Explore.

A Split Reality: Wall Street Cheers While Customers Flee

There are two very different stories playing out for VMware by Broadcom. On one hand, the company’s stock market performance is strong. Investors seem to like Broadcom’s aggressive strategy. They see the cost-cutting measures, like reducing the number of partners, and the price increases as positive signs for short-term profit. The company’s sales figures look healthy for now, and Wall Street is celebrating.

On the other hand, the foundation of the business—its customer and partner base—is showing deep cracks. The goodwill that VMware built over decades is eroding quickly. Customers are not just complaining; they are actively searching for ways to move away from VMware’s products. This process, called migration, is complex and takes time, but the widespread anger suggests a significant number of customers will eventually leave. The industry is watching to see if this customer exodus will hurt the company’s long-term health. A business can look profitable today, but it may not have a bright future if it loses its loyal customers.

This situation creates a dilemma for other companies in the tech ecosystem. They are faced with the challenge of supporting a platform that is generating so much negativity. The environment around VMware is seen as toxic, making it a difficult place to advertise or build partnerships.

A Special Case: VMware for Submarines

Amid the turmoil surrounding the conference and partner changes, a separate, interesting story emerged about VMware’s software licensing. This story involves a very specific and unusual use case: submarines. The issue stems from VMware’s new subscription model, which requires software installations to regularly check in with VMware’s servers.

This check-in process is a problem for systems that operate offline for long periods. A submarine, for example, might be submerged and out of contact with the internet for weeks or even months. During this time, it cannot “phone home” to verify its software license. The new rules required systems to either be in “connected mode,” where they automatically report license usage every 180 days, or “disconnected mode,” where a user must manually upload the usage data.

To solve this problem for clients like navies, VMware introduced a new license category.

• Certain users can now mark their licenses as critical.
• This “critical” status removes the requirement to report license usage by a specific deadline.
• It allows the software to continue functioning without interruption, even when completely disconnected from the internet for an extended time.

While this is a practical solution for a unique problem, it also sparked some amusing questions. What happens if a submarine tries to perform an action, and a software warning appears asking to upload a license report? More seriously, what if a submarine is lost at sea and can never report its license usage? Could a navy technically be sued for a license violation? These questions highlight the strange and sometimes comical side effects of modern software licensing. It is a reminder that some of the most critical systems in the world, like the British submarines that reportedly still use Windows 95, rely on older, simpler technology that avoids these complex digital chains.