Telefónica Germany Ditches VMware After 5x Price Hike, Switches to Spinnaker

Telefónica Germany, facing a fivefold increase in VMware renewal costs from Broadcom, has switched its support to Spinnaker. The telecom company was using vSphere with perpetual licenses but Broadcom's shift to subscription-based packages for VMware Cloud Foundation proved too expensive. Telefónica only uses vSphere, finding the full VCF suite unnecessary. While initially happy with VMware, the dramatic price increase prompted the move to Spinnaker, a platform already used for Oracle support. The migration is expected to be completed by the end of 2026. This follows similar decisions by other companies facing steep price increases from Broadcom's new licensing model.