SpecialtyNetworkSllc – Broadcom, the owner of VMware, announced at the VMware Explore conference that VMware Cloud Foundation (VCF) is now AI native. This move reflects the company’s effort to keep up with the fast rise of AI and large language models. The announcement comes during a period of criticism over licensing changes, the end of VMware’s free tier, and ongoing disputes about perpetual licenses.
AI is now central to enterprise technology, and Broadcom’s plan reflects this reality. With VMware Private AI Services set to launch with VCF 9 in 2024, the platform will offer a full suite of AI tools. These include a model store, indexing services, vector databases, and an AI agent builder. A built-in API gateway will also make it easier for multiple AI models to communicate. Broadcom’s goal is simple: let users deploy AI within their existing VMware environments.
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Embedding AI into VMware is ambitious but also risky. Re-architecting the platform could create instability and affect critical workloads. Enterprises relying on VMware face high migration costs if they switch platforms. Leaving can also put quality-of-service metrics at risk. As a result, many businesses choose to stay with VMware, despite higher costs and licensing issues.
Broadcom’s licensing policies have already pushed some customers to competitors like Nutanix, SUSE, and IBM. These companies have gained users who decided to reduce reliance on VMware. Yet, VMware remains deeply embedded in enterprise IT stacks. Migration is not simple. High switching costs and complex workloads often slow adoption of alternative platforms.
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Broadcom also introduced updates to the VMware Tanzu Platform. These include easier publishing of MCP servers and the new Tanzu Data Intelligence, a data lakehouse solution. The company also announced Intelligent Assist for VCF, an AI-powered chatbot linked to VMware’s knowledgebase. This tool can help users solve problems faster, reducing the need for immediate human support.
Many once predicted that containers and cloud services would replace traditional virtualization. Yet virtualization remains strong in enterprise IT, just as on-premise databases survive despite cloud adoption. VMware’s challenge is to prove its AI upgrades bring real value. While AI features are attractive, Broadcom’s core income still depends on legacy infrastructure and long-standing enterprise contracts.
