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    VMware by BroadcomRenewal Checklist

    A comprehensive, step-by-step checklist to prepare for your VMware renewal under Broadcom's new licensing model. Print it, share it, use it.

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    65%

    of large orgs impacted by changes

    63%

    increase in VMware audits since 2023

    16-core

    minimum per CPU under new model

    1. Understand the New Licensing Model

    • Confirm whether your current VMware licenses are perpetual or subscription-based
    • Map your existing SKUs to the new catalog: VMware Cloud Foundation (VCF) or vSphere Foundation (VVF) with add-ons
    • Understand per-core licensing with the 16-core minimum per CPU — even if fewer cores are enabled, you pay for 16
    • Review vSAN capacity licensing: VVF includes 0.25 TiB per licensed core; additional capacity is per-TiB add-on
    • Identify which legacy products have been discontinued or folded into bundles
    • Confirm whether your organization qualifies for VVF (smaller environments) or must use VCF (enterprise)

    2. Inventory Your Current Deployment

    • Document all physical hosts: CPU model, core count per socket, number of sockets
    • Calculate total licensed cores needed (cores × sockets × hosts), applying the 16-core minimum per CPU
    • Inventory vSAN storage capacity in use and projected growth (dedupe/compression ratios matter)
    • List all VMware products currently deployed: vSphere, vCenter, vSAN, NSX, Horizon, Workspace ONE, Tanzu, Aria, etc.
    • Identify which features you actually use vs. what you're licensed for — avoid paying for unused bundle components
    • Document your virtualization ratios and VM density per host

    3. Assess Your Compliance Position

    • VMware audits have increased 63% since 2023 — 36% of organizations now report VMware audit activity
    • Reconcile deployed licenses against contractual entitlements before Broadcom initiates contact
    • Check for over-deployment: VMs running on unlicensed hosts, features enabled without entitlement
    • Review whether DR/failover hosts are properly licensed under the new model
    • Verify that any VMware Cloud on AWS or hybrid deployments are correctly accounted for
    • Document your compliance position with evidence — don't rely on memory or assumptions

    4. Evaluate Renewal Timing & Strategy

    • Begin renewal preparation 90–120 days before expiration at minimum; 12–18 months is ideal for major agreements
    • Note: some distributors have communicated late-renewal penalties — verify applicability in your channel
    • Be aware of 72-core minimum order requirements communicated by some distributors in 2025
    • Understand that perpetual licenses can still run, but support/updates require subscription at renewal
    • Request multiple quotes from different authorized partners — Broadcom has reduced the partner channel, limiting options
    • Factor in multi-year commitment discounts vs. flexibility of annual terms

    5. Model the Financial Impact

    • 65% of large organizations have been impacted by VMware licensing changes — expect significant cost increases
    • Calculate total cost under new per-core subscription model vs. your current perpetual + support costs
    • Account for vSAN per-TiB charges separately — storage growth directly drives licensing spend now
    • Model the impact of high-core CPUs (28, 32, 64 cores) which dramatically increase costs under Broadcom's model
    • Include indirect costs: potential migration, retraining, architecture changes
    • Compare VMware renewal cost against alternatives (Nutanix, Microsoft Hyper-V, KVM, cloud-native)

    6. Evaluate Alternatives

    • Assess Nutanix AHV as a hypervisor alternative — no separate virtualization license required
    • Evaluate Microsoft Hyper-V for Windows-centric workloads, especially if you have existing Microsoft EA
    • Consider cloud-native migration for appropriate workloads (AWS, Azure, GCP)
    • Evaluate open-source options (KVM/Proxmox) for non-critical or development workloads
    • Calculate total cost of ownership for alternatives, including migration effort, retraining, and operational changes
    • Even if you plan to renew, having evaluated alternatives creates negotiation leverage

    7. Prepare for Negotiation

    • Align IT, finance, procurement, and legal before engaging Broadcom or partners
    • Document your deployment data — hard numbers beat assumptions in every negotiation
    • Understand Broadcom's pressure tactics: audit threats, service termination warnings, urgency on renewal deadlines
    • Know your contractual rights: existing perpetual licenses remain valid even without renewal
    • Prepare a BATNA (Best Alternative to Negotiated Agreement) — what will you do if renewal terms are unacceptable?
    • Consider engaging independent licensing expertise to level the playing field

    8. Post-Renewal Safeguards

    • Review the signed contract carefully — new Broadcom terms may differ from legacy VMware agreements
    • Set calendar reminders for next renewal 12+ months in advance
    • Implement ongoing license tracking to avoid surprise over-deployment
    • Monitor Broadcom's continued licensing changes — the model is still evolving
    • Standardize CPU purchases going forward to control per-core licensing costs
    • Track vSAN capacity growth and plan licensing adjustments proactively

    Need expert help with your VMware renewal?

    Our VMware licensing experts can help you model the financial impact, negotiate better terms, and evaluate alternatives.

    Talk to a VMware Expert