The London Stock Exchange Group (LSEG) has expanded its collaboration with VMware by signing a new five-year agreement. This partnership centers on VMware’s Cloud Foundation (VCF) private cloud platform, aiming to enhance LSEG’s infrastructure capabilities.
Long-Term Commitment to VMware
LSEG has utilized VMware solutions for over a decade, focusing on the deployment of VCF to bolster its private cloud operations. The new contract also includes professional services provided by Broadcom to implement VMware Cloud Foundation 9.0 throughout LSEG’s IT infrastructure.
Financial Uncertainty
Details regarding the financial implications of this agreement remain undisclosed, as LSEG has opted not to reveal the contractual cost. This lack of transparency raises questions, especially following Broadcom’s acquisition of VMware for $61 billion in late 2023, which led to rising licensing costs and changes in purchasing models.
Since the acquisition, many VMware customers have expressed concerns over increased expenses. Analyst firm Gartner has pointed out that for some clients, shifting workloads to IBM mainframes might be more cost-effective than using Broadcom’s new subscription-based licensing.
Industry Trends
According to recent reports, about half of VMware users are considering reducing their reliance on the company’s products by 2028. This is largely due to dissatisfaction with Broadcom’s strategy, which now primarily offers a comprehensive private cloud suite through VCF 9, rather than allowing customers to selectively acquire individual software components.
Strategic Partnerships
Andrew Knight, LSEG’s CIO for Infrastructure and Cloud, commented that maintaining VMware’s Cloud Foundation enables a tailored private cloud environment. It allows LSEG to adapt to evolving technological needs while supporting new services and workloads.
This initiative further complements LSEG’s existing cloud partnerships. Notably, the exchange has a multi-year agreement with Amazon Web Services (AWS), which serves as the preferred cloud provider for its Markets, Risk Intelligence, and FTSE Russell divisions. Additionally, LSEG has a prior long-term collaboration with Microsoft aimed at developing new products and services for its data and analytics segment.
- Partnership: LSEG and VMware for Cloud Foundation
- Duration: Five years
- Key Product: VMware Cloud Foundation 9.0
- Broadcom Acquisition: $61 billion in late 2023
- Customer Sentiment: 50% of users considering reduction by 2028
