Broadcom’s VMware Licensing Changes
Major Changes to VMware Licensing Are Coming — Is Your Business Ready?
Broadcom’s acquisition of VMware isn’t just a corporate reshuffle — it’s a seismic shift in the licensing landscape. For organisations running vSphere Standard or Enterprise Plus, the new pricing model could redefine your IT budget — with some estates facing up to a 400% increase in total cost of ownership.
At Galtec, we’re already seeing the impact across customer estates. This isn’t just about cost — it’s about control, agility, and future-proofing your infrastructure. With licensing changes already rolling out across the US and Europe, UK organisations should act now to avoid being caught off guard.
What’s Actually Changing in VMware Licensing?
From vSphere version 9 onwards, Broadcom is retiring standalone editions like vSphere Standard and Enterprise Plus. Instead, customers will be moved to one of two bundles:
vSphere Foundation (VVF 9)
VMware Cloud Foundation (VCF 9)
These bundles introduce a per-core licensing model and require licences to be assigned at the vCenter level. This change simplifies licence keys but formalises core-based accounting — and skipping this step can result in loss of connectivity to critical servers.
Why UK Organisations Must Act Now
Broadcom has already begun phasing out legacy licensing models in the US and Europe, with many customers now unable to renew or extend existing vSphere Standard licences. This shift is expected to reach the UK imminently, meaning:
Legacy licence extensions may no longer be available
Only the new (and more expensive) VCF licences will be offered
Businesses could face 1.5x to 4x increases in annual licensing costs
Real-world examples:
Licensing costs jumping from £30K to £120K
Core-based licensing driving up total cost of ownership
Strategic Considerations: On-Prem vs Cloud
With VMware licensing costs rising, many businesses are reassessing their infrastructure strategy. In recent customer engagements, Galtec has found that Microsoft Azure’s IaaS offerings now offer price parity or better compared to on-prem VMware hosting.
This makes it a critical time to evaluate:
Your current licence type and core counts
Subscription renewal dates
Long-term infrastructure strategy
Galtec’s Advice: Plan Now, Save Later
Our Presales team is offering free strategic platform planning sessions to help businesses navigate these changes. We’ll help you:
Assess your current VMware estate
Explore renewal extension options
Compare on-prem vs cloud costs
Avoid costly licensing mistakes
Get Expert Help with Your VMware Licensing Strategy
Fill out the form to schedule your free strategic planning session.
