CPG: How CIOs can execute a successful VMware exit

The Broadcom acquisition is roiling the sector—but it’s an opportunity for leaders to modernize and add agility to their IT operations.

Broadcom’s acquisition of VMware has sent shockwaves through the enterprise technology ecosystem, especially for CIOs in the consumer-packaged goods industry. What was once viewed as a stable cornerstone of virtualization is now being reexamined as a potential liability. The shift to subscription-only pricing, elimination of perpetual licenses, and bundling of previously independent services have significantly undermined cost predictability and infrastructure flexibility.

This disruption is accelerating cloud migration initiatives and forcing a reassessment of long-standing vendor relationships. For CPG organizations already grappling with margin pressure, evolving consumer expectations and supply chain volatility, the need for flexible, scalable infrastructure has never been greater.

As infrastructure strategies evolve, so does the demand for modernization expertise. This is not simply about replacing software; it’s about rethinking the foundation of enterprise IT to enable long-term agility. CIOs must act decisively to modernize their platforms in alignment with business goals. Those who wait risk being locked into legacy systems that no longer serve the pace or priorities of modern operations.

Here we offer five strategic steps CIOs can take to plan a successful VMware transition and unlock long-term IT value.

1.    Reassess vendor lock-in risk

The first step is to assess your current VMware footprint. Identify where it resides across your infrastructure, which workloads rely on it, and how those workloads align with future business needs.

This analysis gives CIOs a data-driven foundation with which to evaluate risk exposure and prioritize modernization opportunities. Without a comprehensive view of the current environment, it’s difficult to define a credible path forward. And the longer VMware dependency goes unaddressed, the more likely organizations are to face inflated IT costs and inflexible licensing contracts that stifle innovation.

2.    Choose the right migration strategy

There is no one-size-fits-all migration approach. Choosing the right strategy is especially critical for CPG organizations balancing time-to-market pressures such as seasonal launches and product promotions. The decision must be tailored to the company’s business objectives, application architecture and technical maturity.

Lift-and-shift strategies may offer speed, but without optimization they often lead to performance bottlenecks and higher long-term costs. Re-platforming allows teams to take advantage of new infrastructure features while preserving workload familiarity. A full re-architecture, though more resource-intensive, enables scalable, cloud-native performance for long-term gains.

The following figure illustrates the pros and cons of each migration strategy to help CIOs assess what’s best for their business.

Figure 1

3.    Embrace cloud-native and open-source solutions

For companies under pressure to do more with less, cloud-native and open-source technologies are becoming foundational to IT strategy. These solutions provide the agility and scalability needed to support real-time analytics, dynamic pricing models, and omnichannel experiences—capabilities that are now table stakes for modern CPG businesses.

Industry leaders like Target and Walmart use open-source orchestration tools such as Kubernetes to build resilient, cloud-agnostic infrastructures that scale with demand. According to a Forrester study commissioned by Perforce, enterprises migrating to open-source platforms reported a 30% reduction in operational costs.

Start by identifying high-impact workloads—such as ecommerce engines or analytics platforms—that can benefit from cloud-native deployment. With the right architecture, open-source tools can provide enterprise-grade performance, reduce vendor dependency, and become key enablers of future-ready innovation.

4.    Build a hybrid or multi-cloud architecture

For globally distributed organizations, building a hybrid or multi-cloud strategy is increasingly necessary to meet diverse compliance mandates, latency requirements and performance expectations. These architectures enable workloads to run where they perform best, whether on-premises or in the cloud, and reduce the risk of vendor dependency. This approach is particularly relevant for CPG firms seeking to modernize while navigating regional constraints and time-sensitive retail cycles.

Begin by identifying which applications require low-latency or localized processing, and which are candidates for elastic cloud scalability. Strong governance, observability, and automation are essential to managing the complexity of hybrid and multi-cloud environments successfully.

For example, a leading global life sciences company successfully migrated over 2,200 VMware workloads to AWS using Cognizant’s VMware Migration Accelerator and AWS-native tools. The initiative supported by the AWS Migration Acceleration Program, delivered a 76% reduction in unplanned downtime, 40% lower infrastructure costs and a 37% improvement in application performance.

5.    Act now to preserve options and maximize value

Delaying IT modernization is no longer a neutral choice; it introduces real business risk. For CPG leaders, outdated infrastructure can hinder digital shelf visibility, slow DTC growth and weaken supply chain agility. Broadcom’s licensing overhaul only compounds these challenges by introducing cost unpredictability and operational rigidity

Planning a VMware exit now ensures organizations maintain leverage and flexibility in future negotiations. Early adopters are already reporting measurable gains in speed, cost efficiency and innovation by moving to modern platforms. Acting now positions your organization to lead transformation—not scramble to catch up when options have narrowed.

Cognizant’s approach to VMware transitions

According to CIO.com’s 2025 State of the CIO Survey, 52% of CIOs now identify as strategic leaders focused on innovation and transformation. Top investment areas include AI, infrastructure modernization and customer experience—initiatives that often conflict with legacy platforms like VMware.

Exiting VMware is a strategic opportunity to future-proof your enterprise infrastructure. Cognizant helps CPG organizations navigate this complexity with a comprehensive migration solution to AWS. Our structured approach minimizes disruption, accelerates transformation, and aligns infrastructure modernization with broader digital objectives.

Backed by AWS’s robust ecosystem and Cognizant’s proven methodologies, we help enterprises reduce costs, increase agility and build IT environments ready for what’s next. By making the move to cloud-native and open-source platforms, organizations can unlock long-term flexibility, scalability and innovation without compromising stability.

To learn more about Cognizant’s migration solutions, download our playbook.