Broadcom's Overhaul ofVMware Licensing
Broadcom's overhaul of VMware licensing has forced organizations to completely rethink their renewal and platform strategy. Per-core subscriptions, product consolidation, and surprise minimums have changed the math.
Just how significant are the VMware licensing changes?
According to The Rising Cost of Software Compliance: 2025 Survey of Software Audits, the impact is massive.
Read the full reportof large organizations impacted by VMware licensing changes
increase in VMware audits since 2023
What changed with VMware licensing?
(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. |
Get ahead of Broadcom's VMware licensing changes before renewal shock hits.
Broadcom's subscription-only model, per-core licensing with 16-core minimums, and vSAN per-TiB charges are already driving major cost increases.
What should you be considering? A 6-step approach
- 1
Step 1: Start renewal planning 90–120 days out
Renewal quotes are arriving higher because of per-core pricing, 16-core minimums, and vSAN capacity charges. Begin early to model the impact and negotiate effectively.
- 2
Step 2: Standardize and control core counts
Licensing is per physical core with a 16-core minimum per CPU. Introducing higher-core processors without planning can materially increase cost at renewal.
- 3
Step 3: Forecast vSAN capacity growth
Storage expansion now drives licensing spend directly. Track dedupe and compression ratios and forecast capacity before it lands in the quote.
- 4
Step 4: Map legacy SKUs to the new catalog
Legacy licenses do not map one-to-one into VCF, VVF, and add-ons. Identify which features you actually use before entering negotiations.
- 5
Step 5: Widen your channel access early
Broadcom reduced the number of authorized resellers, which means fewer quotes, longer lead times, and less discounting leverage. Line up sourcing paths in advance.
- 6
Step 6: Close audit exposure before it is tested
VMware audit activity has risen sharply. Inventory entitlements and actual usage so your position is defensible if Broadcom comes knocking.
VMware Licensing Questions, Answered.
Get clarity on the most common questions about VMware by Broadcom licensing changes.
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Let's discuss your VMware by Broadcom renewal
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