Broadcom’s overhaul of VMware licensing has forced organizations to completely rethink their VMware by Broadcom renewal and platform strategy. Per-core subscriptions, product consolidation, shifting partner access, and surprise minimums have changed the math. There isn’t a single “right” answer — your best path depends on footprint, growth plans, storage profile, and risk tolerance.
According to The Rising Cost of Software Compliance: 2025 Survey of Software Audits its impact is significant.
(in plain English)
Year | Change | What it means for you |
|---|---|---|
| Late 2023–2024 | VMware moves to subscription-only with a simplified catalog (VCF & VVF + add-ons) | Perpetuals ended; customers map into VMware Cloud Foundation (VCF) or vSphere Foundation (VVF) with add-ons for things like vSAN capacity, DR, Tanzu. Planning horizons and budgeting shift to recurring spend. |
| 2024 | Per-core licensing with a 16-core minimum per CPU formalized across VCF/VVF | You must license all physical cores, and at least 16 cores per processor even if fewer are enabled. High-core CPUs can materially lift cost at renewal. |
| 2024 → Dec 2024 | vSAN capacity shifts to per-TiB add-on; VVF begins bundling 0.25 TiB per licensed core | Storage growth—not just CPU—now drives run-rate. New VVF licenses include 0.25 TiB/core; beyond that, you buy vSAN capacity per TiB. Forecast capacity early. |
| 2024–2025 | Many customers report sharp price increases | Independent reporting shows steep uplifts post-acquisition, prompting evaluations of scope, architecture, or alternatives. |
| 2024–2025 | Partner program tightened and resellers reduced | Fewer authorized partners and tier changes affect quoting, discounts, and lead times—start renewals earlier and widen sourcing paths. |
| Mar–Apr 2025 | Distributors communicate 72-core order minimums and late-renewal penalties (policy signals) | Small/edge estates and POCs can price like mid-size; missing the anniversary date may trigger penalties. Validate applicability in your channel. |
Additional Resource: A Complete Guide to All the VMware Licensing Changes Post Broadcom Acquisition
Broadcom’s subscription-only model, per-core licensing with 16-core minimums, and vSAN per-TiB charges are already driving major cost increases. Add in distributor rules and rising audit activity, and the stakes have never been higher.
No—new sales are subscription/term only, centered on VCF and VVF with add-ons. Existing perpetuals can run, but access to new versions/support requires subscription.
Licensing is per physical core with a 16-core minimum per CPU. Each core requires capacity, and the 16-core floor applies even if fewer are enabled.
VVF includes bundled vSAN capacity (0.25 TiB per licensed core on new licenses). Additional capacity is licensed per TiB as an add-on.
Some distributors relayed a 72-core minimum order floor and late-renewal penalties in 2025. Treat this as a channel policy you should verify for your quote, not a universal rule in all scenarios.
Many customers are reporting sharp price increases with Broadcom’s new licensing. Factors include per-core licensing, the 16-core minimum per CPU, and separate charges for vSAN storage capacity. Renewal quotes often look much higher than legacy agreements.
DOWNLOAD OUR RENEWAL CHECKLIST
Consideration | What it means for your VMware estate |
|---|---|
| Renewals | Renewal quotes are arriving with higher costs due to per-core pricing, 16-core minimums, and vSAN capacity charges. Begin planning 90–120 days out to model impact and negotiate effectively. |
| Core Counts | Standardize CPU purchases. Accidentally introducing higher-core CPUs (28, 32, 64) without planning can dramatically increase costs under Broadcom’s model. |
| vSAN Growth | Storage expansion now directly drives licensing spend. Track dedupe/compression ratios and forecast capacity carefully. |
| Catalog Mapping | Legacy SKUs do not map 1:1 to the new simplified catalog (VCF, VVF, add-ons). Identify which features you actually use before you negotiate. |
| Channel Access | Broadcom has reduced the number of authorized resellers. This means fewer quotes, longer lead times, and potentially less discounting power—start early. |
| Audit Exposure | VMware audits have risen sharply (22% → 36% of organizations in two years). Ensure entitlements and usage are inventoried before Broadcom comes knocking. |
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