Nationwide extends Broadcom VMware Cloud Foundation deal

Nationwide Building Society has extended its contract with Broadcom to continue using VMware Cloud Foundation as the base for a private cloud. The platform will back the society’s digital services and help integrate systems from its acquisition of Virgin Money.

VMware Cloud Foundation is a bundled private cloud platform that includes compute, storage, networking, management and security with automation features. According to Nationwide, it will provide a standardised environment for running traditional applications, cloud-native services and future AI projects while meeting performance, governance and compliance requirements.

The society framed the extension as part of its programme to modernise infrastructure while retaining operational control. Nationwide is consolidating systems after buying Virgin Money and has said it needs a resilient, scalable and secure technology base to deliver consistent digital services to members.

Paul Walsh, director of infrastructure and service delivery at Nationwide, commented: “A private cloud built on VMware Cloud Foundation enables us to simplify operations, accelerate innovation and deliver seamless digital experiences for our members, while maintaining the trust and stability that define the Nationwide brand.”

According to Broadcom, the renewal will support coordinating operations across the merged group and speed service delivery. Joe Baguley, EMEA chief technology officer at Broadcom, added that a consistent platform should reduce operational complexity and help maintain the security and governance standards expected in UK financial services.

The extension comes as several organisations report substantial increases in VMware licensing and support costs since Broadcom acquired VMware-related assets. Some large customers are exploring or shifting to alternative virtualisation platforms.

Tesco is engaged in a public contractual dispute involving Broadcom, VMware and reseller Computacenter and has taken steps to remove VMware and CA software from parts of its estate. Broadcom is responding to that dispute while continuing to supply products and support to other customers.

Nationwide did not disclose financial terms. The society cited operational simplicity and regulatory compliance as reasons for standardising on a single private cloud stack.