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IBM is transferring customer relationships for hundreds of its IBM Cloud VMware customers to 11:11 Systems, which says it plans to move them onto its VMware Cloud Foundation (VCF) platform. The deal’s financial terms were not disclosed, and no exact customer count or account-by-account migration schedule has been published. Here is what is confirmed, what is not, and what the change means for IBM Cloud VMware users.
What is being transferred, and to whom
CRN reports that 11:11 Systems is acquiring IBM’s VMware enterprise customers. The customer group spans the Americas, the UK, the EU, and APAC, and CRN describes it as ranging from mid-sized and large enterprises to Fortune 100 companies. 11:11 CEO Brett Diamond, quoted by CRN, put the scale at “hundreds of customers,” which is a description rather than a count. The report does not describe a sale of IBM itself or of IBM’s entire VMware business.
Where the customers are expected to land
11:11 Systems says it intends to migrate these customers to VMware Cloud Foundation. According to CRN, most of the customers run VMware platforms dedicated to a single customer. A smaller group runs a VMware-enabled stack built on VMware Cloud Director. CTO Justin Giardina described the larger group as customers who are already on a VMware-enabled platform, but one that IBM operated as dedicated to each customer. Diamond also said he expects most customers to want to move to 11:11’s platform soon. That is an expectation. CRN does not report signed, customer-by-customer migration commitments.
What is not established
- Price: CRN reports that the financial terms were not disclosed, so no contract value is available.
- Count: “Hundreds” is the only figure given for the customers involved.
- Timing: No transfer completion date or migration deadline has been published for any account.
- Individual reasons: The coverage does not explain why each customer is included or what each one has agreed to.
Why 11:11’s size is a claim, not a verified fact
Broadcom Infrastructure Software Group President Ram Velaga, in a statement to CRN, described 11:11 Systems as having more than 6,000 customers and an extensive VMware background. That figure comes from the vendor’s statement and was not independently verified in the report. It is useful as Broadcom’s characterization of its partner, not as a measured fact.
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What IBM’s policy change actually covers
IBM’s own policy notice explains a separate change that affects new business. Effective 31 October 2025, new VMware Solutions deployments are no longer available to new IBM customers. IBM also says it could no longer sell VMware licenses to a customer unless that customer already had at least one active VMware workload running on IBM Cloud before that date.
Existing qualifying customers can continue using and expanding active workloads, subject to restrictions that the notice describes. IBM is explicit on one point: the notice addresses End of Marketing only. In its words, “This notice addresses End of Marketing only and it does not reflect End of Support.” Readers should not treat the notice as IBM ending support for all existing customers.
The notice and the CRN report are separate documents. CRN’s account does not say the transfer was caused by the policy change, and this article does not claim that it was.
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IBM’s licensing FAQ covers a separate operational change. Client-managed IBM Cloud VMware deployments require Broadcom subscription keys and the VMware vCloud Usage Meter. VCF as a Service has different requirements. IBM describes this as a licensing and metering change that does not, by itself, require moving workloads.
| Deployment model | Licensing requirement (per IBM licensing FAQ) | Workload migration required by this change |
|---|---|---|
| Client-managed IBM Cloud VMware | Broadcom subscription keys and VMware vCloud Usage Meter | No, per IBM |
| VCF as a Service | Different requirements; specifics not stated in the IBM material reviewed | No, per IBM |
If you are an IBM Cloud VMware customer
Your position depends on how your environment is set up and whether you are in the group CRN describes. Work through these checks:
- Confirm whether your environment is client-managed or VCF as a Service. The licensing requirements differ.
- If you are client-managed, confirm you hold Broadcom subscription keys and that the VMware vCloud Usage Meter is in place.
- Check whether you had at least one active VMware workload on IBM Cloud before 31 October 2025. That date determines whether new licenses can be bought for your account.
- Ask IBM and, if relevant, 11:11 Systems in writing whether your account is part of the transfer, and what the restrictions on your active workloads are.
- Request the exact handover and support dates for your environment before planning any change.
Evaluating your own VMware path
IBM Consulting’s older strategy article outlines three broad options for organizations with VMware workloads: keep modernizing on VMware, rehost on another virtual platform, or containerize and modernize applications. It suggests comparing options on six axes: application criticality and type, license renewal timing, technology refresh cycle, transformation risk, operating model, and available skills. These are general decision criteria, not terms of the 11:11 transaction, and the article does not give current pricing.
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A practical way to use them is to score each workload separately. A business-critical application with a near-term license renewal and few internal skills needs a different path than a non-critical workload with a longer runway.
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The transaction details come from CRN’s 2026 report, which quotes 11:11 Systems executives and includes a Broadcom statement. The policy and licensing details come from IBM’s official documentation, including the notice effective 31 October 2025. The IBM Consulting strategy article is older and is used here only for general decision criteria. None of these sources gives a final customer list, a completed transfer date, or the reasons behind any single customer’s situation.
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