VIRTUALIZATION VOLATILITY
A tech shift churches can’t ignore
It’s important for leaders of non-profits — including religious organizations — to stay aware of the ever-evolving technology landscape. While these changes might not seem like a big deal on the surface, at some point they can become a big deal for every entity, both for-profit and not-for-profit.
Here’s a great example of why it’s so important for church leaders to be aware of technological trends: on November 22, 2023, Broadcom purchased VMware. (Please stick with me. You might not care now, but you will in a few minutes.)
VMware is a virtualization platform that many organizations, including a lot of nonprofits, have been using for decades. Over the years, it has had numerous owners.
VMware allows you to maximize your server hardware through virtualization. Virtualization shares physical server resources (hosts) across numerous virtual machines, each acting like a physical machine but sharing the same hardware resources. Virtualization was a significant game-changer as it made better use of hardware resources while also providing redundancy.
VMware seemed to value non-profit organizations and provided significant discounts on both software and support to all nonprofits, including religious organizations. These discounts — and the ease of using VMware — made it a quick choice 20 years ago as churches began to virtualize their servers.
The most recent purchase of VMware was shocking because its buyer, Broadcom, primarily makes computer chips and hardware. Back in the day, they made dial-up modems. (You remember those, right? They dialed a phone number and made all sorts of awful noises while we prayed that they would connect so we could get online.)
Why would a hardware company want a software company?
I had concerns related to Broadcom’s motives back in 2023; however, lacking the $69 billion to match the sale price, I had to hope for the best.
I’m blessed to serve the Lord in two roles. First, since 2001, I’ve been the Director of Technology at Faith Ministries, in Lafayette, Ind. Faith uses VMware for our server infrastructure. Second, since 2021, I’ve been the President of MBS, a technology managed service provider for churches and ministries. MBS offers server hosting and uses several technologies from VMware.
As a practitioner, I’ve been watching to see how Broadcom acquiring VMware will impact churches and ministries. Would Broadcom continue supporting nonprofits as before?
The answer: no
For my church, our VMware renewal was up in February 2026. I began the renewal process with high hopes and viewed it as a benchmark for other nonprofits. The first renewal came back with an 840-percent price increase. I’m not aware of any nonprofits that can simply absorb an 840-percent increase for anything. Not being opposed to reasonable price increases, I pushed back, requesting a better renewal cost.
Our channel partner and I started working our way up the Broadcom ladder. I spoke with regional sales reps, district managers, and even a VP of Sales. I was hoping to find a solution not just for my church, but for all nonprofits. Each time, they came back with a revised offer — but still unreasonable — decreasing the cost escalation from 840% to 530% to 386%.
Sadly, my Broadcom contacts have stopped responding, and it doesn’t seem like the provider wishes to continue supporting nonprofits. Even if we accept a 386-percent increase, what will happen with the next renewal? Broadcom seems determined to price out nonprofits and only serve the largest organizations, which can afford these prices.
So, what now?
What’s a nonprofit to do if it can’t afford to renew its VMware license?
First, don’t panic. VMware will send you a notice that your software is no longer supported and cannot be updated, but you can still run it — just without support or updates. This gives you time to find and migrate to another platform.
Second, keep all paperwork from VMware. The “break-up letter” from Broadcom is important as it ensures you can continue to use the unsupported software.
One caveat: I’ve heard of some for-profit organizations (that also can’t afford these much-increased rates) receiving cease-and-desist letters stating they have 90 days to remove the software or face legal action. Although I haven’t heard of this happening to any nonprofits, that doesn’t mean it won’t … eventually.
Even if you get a 90-day notice, there are options
My firm, MBS, does not sell hardware or software; we want our clients to know we’re objective and not incentivized to push one product over another. We’ve spent the last few months researching options for nonprofits and have reached two conclusions.
First, if you are a Microsoft Windows shop, we recommend migrating from VMware to Hyper-V from Microsoft. For most nonprofits, the cost is free or nearly free.
Second, if you run other operating systems, we recommend Proxmox, an open-source hypervisor that’s affordable (at the old VMware rates) and can handle a variety of operating system platforms.
Finally, for some churches, it might be time to move away from onsite hosting servers and move them all into the cloud. There are many cloud options available. MBS offers server hosting, and we can host just about anything. Hosting with MBS removes this kind of burden, and it’s more affordable than you might think. Cloud hosting is also future-proof.
Stay ahead of tech changes
I apologize that this “Tech Bytes” installment is so technical. Church leaders: I suggest you reach out to your IT staff. Find out if you host servers onsite. Find out if you use VMware. If you do, find out what the plan is when your VMware license is up for renewal.
You can also feel free to reach out to me. My email is linked in the bio, below.
As technology continues to evolve, I’ll do my best to keep you up to date, and to provide solutions that maximize ministry dollars for the greatest kingdom impact.
Jonathan Smith is the President of MBS, Inc. and the Director of Technology at Faith Ministries in Lafayette, Ind. He is an author and frequent conference speaker. Follow him on X @JonathanESmith.
