VMware by Broadcom licensing FAQ

Post-Broadcom acquisition changes

What happened to VMware perpetual licenses?

Broadcom discontinued all perpetual licenses for VMware products on December 11, 2023, requiring customers to move to subscription-based licensing. Existing perpetual licenses remain valid but support and updates are only available through subscription transitions. This change affects all major VMware products including vSphere, vSAN, NSX, and Site Recovery Manager.

How does the Broadcom acquisition affect our current VMware infrastructure?

Your existing infrastructure continues to function, but licensing, support, and product roadmaps are changing significantly. Broadcom has simplified the product portfolio into four main bundles and moved to per-core licensing with a 16-core minimum per CPU. Support processes are being integrated into Broadcom's existing structure, which some customers report has resulted in different response times and procedures.

What are the new VMware bundles under Broadcom?

Broadcom consolidated VMware's portfolio into four bundles: VMware Cloud Foundation (VCF), vSphere Foundation (VVF), vSphere Standard (VVS), and vSphere Enterprise Plus (VSEP). Popular options for smaller businesses like Essentials Plus and ROBO kits have been retired, requiring upgrades to more expensive SKUs. Each bundle includes different feature sets previously sold separately.

Cost and pricing impact

How much are VMware costs increasing?

Organizations report cost increases ranging from 300% to 1000% when transitioning from perpetual to subscription models, with smaller deployments often seeing the highest percentage increases. The 16-core minimum per CPU particularly affects customers with older hardware or smaller environments. Actual cost increases depend on your current licensing model, hardware configuration, and which new bundle you require.

How is VMware licensed now?

VMware now uses per-core licensing with a mandatory 16-core minimum per CPU, regardless of your actual core count. This means a server with 8-core CPUs still requires licensing for 16 cores per socket. The change from socket-based to core-based licensing significantly impacts organizations with high-core-count processors.

Can I negotiate with Broadcom on pricing?

Broadcom has shown limited flexibility on list pricing, though some customers report success negotiating multi-year commitments or bundling with other Broadcom products. Organizations with larger VMware deployments typically have more negotiating room than smaller ones.

Compliance and audit concerns

Is Broadcom auditing VMware customers?

Yes, Broadcom has begun auditing customers, particularly those still on perpetual licenses who haven't transitioned to subscriptions. Audit triggers include expired support contracts, not responding to subscription transition offers, and significant infrastructure changes. Organizations should prepare by documenting their current entitlements and usage.

Can I mix subscription and perpetual licenses during transition?

Broadcom generally doesn't allow mixing licensing models within the same environment, requiring entire clusters or data centers to transition together. This policy complicates phased migrations and may force larger upfront investments. Some customers report receiving temporary "bridge" agreements to manage the transition period.

Support and operational changes

How is VMware support changing under Broadcom?

Support is being integrated into Broadcom's existing structure, with customers reporting different response processes and times compared to previous VMware support. Technical Account Managers (TAMs) are now limited to premium contracts, and support tier structures have changed. Existing support contracts are honored until expiration but won't renew without transitioning to subscriptions.

What happens to my existing support contracts?

Broadcom honors existing support contracts through their expiration dates but requires transition to subscription models for renewal. Some organizations receive "bridge" contract offers to delay full transition temporarily. Support quality and response times may vary during the integration period as teams and processes merge.

Will my third-party tools and integrations still work?

Broadcom has modified partner requirements and certification processes, leading some vendors to reconsider their VMware support. Critical integrations should be verified with each vendor for continued compatibility and support roadmaps. The partner ecosystem is adjusting to new requirements, potentially affecting tool availability and pricing.

Can I still use VMware in a hybrid cloud setup?

Yes, Broadcom supports Bring Your Own License (BYOL) for hybrid deployments but only under the new subscription model. Cloud Provider Program (VCPP) terms are being restructured, potentially affecting hosted VMware services. Verify your cloud provider's continued participation and any pricing changes that might flow through to your services.

What about VMware certifications and training?

The VMware Certified Professional (VCP) program continues under Broadcom with curriculum and pricing modifications. Some specialized certifications are being discontinued or consolidated, and training costs have increased. Current certifications remain valid through their expiration dates, but renewal requirements may change.

Strategic planning questions

Should I renew now or wait?

Organizations able to secure multi-year renewals before full transition to new pricing models may achieve significant savings, though this locks you into VMware during an uncertain period. Consider your three-year technology strategy, potential migration costs, and whether VMware remains aligned with your business goals. Immediate renewal makes sense if you plan to stay on VMware long-term and can negotiate favorable terms.

What are alternatives to VMware?

Organizations are evaluating Proxmox VE, Nutanix, Microsoft Hyper-V, and public cloud platforms like AWS and Azure as potential alternatives. Each option has different migration complexities, feature parity concerns, and cost structures. Consider not just licensing costs but also retraining, migration services, and potential functionality gaps when evaluating alternatives.

How long do I have to migrate off VMware if I choose to leave?

Migration timelines vary significantly based on environment complexity: simple vSphere deployments might transition in 6-12 months, while environments using NSX or full VCF implementations could require 2-3 years. Skilled resources for migrations are becoming scarce as many organizations evaluate changes simultaneously. Start planning immediately even if you haven't made a final decision.

SoftwareOne’s VMware advisory can help

With a global team of VMware experts who’ve helped thousands of customers manage licensing for VMware products, we can save you money through optimization, negotiation, and compliance support. Learn more about our VMware advisory services on our website and contact us to get started managing your VMware by Broadcom landscape for innovation and growth.