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Kentwood approves three-year VMware licensing agreement amid industry price increases
Summary
The commission authorized a three-year purchase of VMware licensing and support, roughly $176,000, after staff reported Broadcom-era price increases of 2.5–3x and limited viable alternatives.
Kentwood commissioners authorized a three-year purchase of VMware licensing and support during the March 4 meeting; staff estimated the three-year cost at roughly $176,000.
Matt, an IT staff member, explained that VMware changed its licensing structure and pricing after Broadcom acquired the company, with current costs two-and-a-half to three times higher than previously (for the city, about $58,000 per year versus about $18,000 historically). Staff said they evaluated third-party alternatives but did not identify a viable replacement at this time. The recommendation is to purchase a three-year package so all licenses expire together, providing flexibility to switch products later if a viable alternative emerges.
Commissioners asked whether the city was getting additional functionality for the higher price; Matt said VMware remains the top-tier virtualization product with features the city uses and that staff will continue to evaluate alternatives during the licensing period. The commission approved the purchase by voice vote.
