VergeIO Reports 80% ARR Growth as Enterprise Customers Flee VMware
VergeIO announced its strongest year on record, with annual recurring revenue growing more than 80% as Boeing, NASA, and other enterprises adopted VergeOS as a private cloud alternative to VMware.
VergeIO, maker of the VergeOS hyperconverged infrastructure platform, reported on February 3, 2026 that its annual recurring revenue grew more than 80% year-over-year in 2025, exceeding its annual plan by more than 25%. The company added a record number of enterprise customers, including Boeing, Raytheon, General Dynamics, NASA, and Dana-Farber Institute, as organizations sought a simpler and more cost-effective alternative to VMware following Broadcom's acquisition and subsequent licensing overhaul.
What VergeOS Offers
VergeOS consolidates what traditionally requires five separate products — a hypervisor, SAN storage, network switching, backup, and disaster recovery — into a single software-defined platform. VergeIO positions the product as a "Private Cloud Operating System" rather than a traditional hyperconverged infrastructure stack, emphasizing that organizations can achieve cloud-style operations on their own hardware without vendor lock-in to a public cloud provider. The company states that customers typically see 50–70% cost reductions compared to their VMware deployments.
The Data Center Intelligence Group (DCIG) named VergeOS a TOP 5 VMware Alternative for the second consecutive year in its 2026-27 SME and SLED edition reports. VergeIO added more than 4,000 inbound verified leads in 2025 alone, averaging one new customer every two to three days.
Context: The VMware Migration Market
Broadcom's acquisition of VMware in late 2023 triggered a major reassessment of virtualization strategies across enterprise IT. Significant licensing cost increases drove a wave of evaluation and migration projects through 2024 and 2025. Competitors including Proxmox, Nutanix, and VergeIO all reported elevated interest from organizations moving workloads off VMware. VergeIO's growth is notable because it was gaining momentum before the VMware disruption and now benefits from both organic demand for software-defined infrastructure and the accelerated migration market created by Broadcom's pricing changes.
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