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 TechSellers Community, you’ get a privileged pass straight to a ​no-cost, no-obligation, board-ready assessment worth £15K. What you’ll get:

    ​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 not a sales call; we are here to help you figure out your options through a no-cost assessment.

    >Ready to take control of your VMware strategy?
    Related Stories
    >
    Rate the Article

    Click the link below to rate this article

    Rate this article
    Have you seen...