Nationwide extends Broadcom deal for VMware private cloud

Nationwide Building Society extended its contract with Broadcom on June 25, 2026, to continue using VMware Cloud Foundation (VCF) as the basis for a private cloud. The agreement covers software licences and support for a standardised private cloud across the group, including systems affected by the integration of Virgin Money.

Nationwide said the software will provide secure, resilient and scalable digital services while preserving governance and regulatory controls as the firm modernises its infrastructure.

VMware Cloud Foundation combines compute, storage, networking, management and security with automation and operational tools. Nationwide plans to run traditional applications, cloud-native workloads and, in time, on-premise AI workloads on the platform to keep infrastructure consistent across sites.

Paul Walsh, director of infrastructure and service delivery at Nationwide, commented: “While integrating Virgin Money, we need a resilient, scalable and secure technology foundation. A private cloud built on VMware Cloud Foundation helps us simplify operations, speed up service delivery and provide reliable digital access for our members.”

Joe Baguley, EMEA chief technology officer at Broadcom, welcomed the contract extension and added that adopting VMware Cloud Foundation across the group will support more efficient integration of operations, faster service delivery and lower operational complexity, while meeting expected security and governance standards.

The extension comes as some large customers report substantial increases in VMware licensing and support costs. Tesco is in a contractual dispute involving Broadcom, VMware and reseller Computacenter and has been removing parts of its VMware and CA software estate.

The market is showing divergence: some organisations are moving to alternative virtualisation platforms, while others are standardising on a single vendor to support group-wide integration and planned on-premise AI workloads.

Broadcom has issued updates to VMware Cloud Foundation aimed at supporting on-premise AI deployments. Nationwide said the renewed agreement will support its immediate operational priorities and longer-term plans to provide consistent infrastructure and service delivery across the combined organisation as it integrates Virgin Money.