In November 2023, something extraordinary happened in the world of enterprise IT — and unless you were in the virtualization trenches, you might have missed just how massive the ripple effects were. Broadcom finalized its $61 billion acquisition of VMware, one of the most important and embedded infrastructure companies in the world. But the real shock wasn’t the size of the deal. It was what came next.

Seemingly overnight, Broadcom’s abrupt overhaul of VMware’s licensing model blindsided thousands of customers. Entire IT budgets were upended. Long-term contracts were rendered obsolete. Decades of trust that VMware had built as the gold standard in virtualization evaporated almost instantly. The term "licensing rugpull" may sound dramatic, but for many CIOs, that's exactly what it felt like. And as history has shown, when vendors force customers into high-stakes licensing changes, the market starts searching urgently for alternatives.

And this, I believe, has opened one of the most disruptive and lucrative technology shifts we've seen in over 30 years.

A $50 Billion Market Up for Grabs

At its peak, VMware was deeply embedded in nearly every enterprise datacenter on the planet. But overnight, that market has become destabilized. Companies who once assumed they were locked into a single virtualization vendor for life are now actively exploring their exit plans. What was once a largely static and mature sector has become one of the most fluid technology markets in the world.

And what’s filling the void? Open source.

In the past year, the OpenInfra Foundation has seen extraordinary momentum around OpenStack, the world’s most widely deployed open-source cloud infrastructure platform. Organizations aren’t just looking for a VMware replacement—they're rethinking their entire virtualization strategy. They're looking for flexibility, transparency, cost control, and above all, freedom from vendor lock-in.

We recognized this early. Last year, the OpenInfra Member community pulled together to create not only a public dialogue on VMware migration, but also a highly actionable VMware Migration White Paper. That paper didn’t simply sound the alarm—it provided real-world guidance for enterprises to understand what a strategic migration to OpenStack would look like.

Because while many CIOs knew why they needed to move, they were still wrestling with how.

The Playbook for Migration is Here

Cloud transformation isn't something you do by flipping a switch. It requires thoughtful planning, honest assessment of your existing stack, and a willingness to modernize not just your infrastructure but your operating model. That’s why our community created a detailed Migration Guide, complete with reference architectures, production case studies, and hard-won lessons from companies already on this journey.

What we’ve seen is that the organizations who approach this migration strategically are not just replacing VMware; they’re leapfrogging into a modern, cloud-native architecture that will serve them for the next decade. They’re shedding layers of expensive proprietary software, adopting automation and Kubernetes orchestration, and building internal expertise around platforms they truly control.

The result? Predictable costs, open integrations, rapid innovation, and a future-proof datacenter untethered from opaque vendor roadmaps.

Open Source Isn’t Just Cheaper, It’s Smarter

In moments of major disruption, enterprises have two choices: cling to legacy vendors out of habit, or seize the opportunity to reset their infrastructure strategy around openness. Open source isn’t just a “cheaper alternative” to VMware — it’s an entirely different way of thinking about innovation, control, and resilience.

With OpenStack and the broader open-source ecosystem, you're not betting on the whims of one vendor — you’re joining a global community of contributors, engineers, and operators who evolve the software in the open. No artificial license ceilings. No forced bundling. No take-it-or-leave-it renewals. Just infrastructure that adapts to your business, not the other way around.

The Future of Virtualization Is Open

I genuinely believe this is one of the biggest IT business moments since the dawn of virtualization itself. Rarely does a market this large, this mature, and this embedded suddenly become so wide open.

The question now isn’t whether companies will leave VMware. The question is: Who’s ready to lead them into what comes next?

The future of virtualization is open. The opportunity is enormous. And it’s unfolding right now.

Visit the Migration Guide