Broadcom’s VMware overhaul

What the pricing and licensing shifts mean for your IT strategy

When Broadcom acquired VMware, the headlines focused on consolidation and scale. But beneath the surface, the changes have been anything but routine.

For IT leaders, this isn’t just a vendor update; it’s a fundamental shift in how VMware environments are licensed, priced, and supported. Here’s what you need to know before your next renewal.

Perpetual licenses are gone

One of the most significant changes is the end of perpetual licenses. Broadcom has moved VMware to subscription-only bundles, notably VMware Cloud Foundation.

While subscriptions promise flexibility, they also introduce recurring costs that can escalate over time. For organisations used to capital expenditure models, this shift means rethinking budget cycles and forecasting.

Pricing and portfolio simplification, but at a cost

Broadcom streamlined VMware’s portfolio, reducing complexity for buyers. However, this simplification came with widely reported price increases.

Renewal pain is real: many customers are seeing higher costs for similar functionality, forcing tough conversations about ROI and long-term viability.

Partner programme turbulence adds perplexity

Broadcom’s overhaul of VMware’s partner ecosystem has created uncertainty for customers who rely on channel partners for procurement and support.

Smaller CSPs have been squeezed, and procurement paths have changed, adding friction to what was once a predictable process.

Support deadlines are looming

The clock is ticking on vSphere 7.x, with End of General Support set for October 2025. This isn’t just a technical milestone; it’s a compliance and risk issue.

Delaying decisions could leave your organisation exposed to security vulnerabilities and operational disruption.

What next?

These changes aren’t cosmetic; they affect cost structures, compliance timelines, and strategic flexibility. If you haven’t already, now is the time to review your VMware commitments and model the impact of staying versus exploring alternative.

Ready to take control of your VMware strategy?

Broadcom’s changes have created uncertainty in VMware estates, but you don’t have to figure it out alone. Through the Cloud Community, you’ get a privileged pass straight to a no-cost, no-obligation, board-ready assessment worth £15K.

These assessments give organisations the evidence needed to modernise and migrate confidently, ensuring they avoid overspending and maximise the return on their cloud investment.

Assessments are funded by AWS to help our community VMWare customers evaluate the impact of changes to the VMWare business model, by providing data-driven plans that identify cost savings, optimise licensing, and reduce migration risks.

Ready to take control of your VMware strategy?

To qualify for an AWS Assessment, your organisation needs to:

  • Have workloads (including on-premises and cloud environments) that you want to assess for cost reduction and optimisation, have 20+ VM’s, 1TB storage.
  • And be willing to provide the necessary data for the assessment to be performed.

All you need to do is submit a request for one of our accredited AWS partners who is on hand to help with a numbers-first assessment to help you make confident, board-ready decisions.

Note: This is a no-obligation assessment call, not a sales call; we are here to help you figure out your options.

>Ready to take control of your VMware strategy?
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