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VMware after Broadcom: four options for your data centre

Since Broadcom bought VMware, licensing has changed and many renewal quotes have gone up. Here are the realistic paths, and how to choose between them.

31 October 20263 min readPieSphere team
In short
  • VMware is now sold as subscriptions priced per CPU core, mainly as VMware Cloud Foundation (VCF).
  • Your realistic options: stay on VCF, move to a cloud provider's VMware service, switch hypervisor, or modernise to public cloud.
  • Compare options over three to five years, including migration effort and skills, not just the licence line.

What changed

Broadcom completed its purchase of VMware in November 2023. Since then, VMware stopped selling perpetual licences and moved to subscriptions priced per CPU core. The long product list was folded into a few bundles, with VMware Cloud Foundation (VCF) as the main offer.

For businesses that only used basic vSphere, renewal quotes often rose sharply. For those already using most of the stack, such as vSAN storage and NSX networking, the bundle can be fair value. Either way, the renewal is a good moment to look at all the options rather than signing by default.

Option 1: Stay and standardise on VCF

This suits you if your team has deep VMware skills, you already use vSAN or NSX, and many of your applications are certified by their vendors only on vSphere.

  • Right-size the number of cores you license; older hosts with many lightly used cores cost more under per-core pricing.
  • Use the whole stack you are now paying for, such as automation and operations tools, instead of separate products that duplicate them.
  • Plan your path to VCF 9 so you are on a supported, current version.

Option 2: Move to a cloud provider's VMware service

Azure VMware Solution, Google Cloud VMware Engine and Amazon Elastic VMware Service run VMware on the provider's hardware. You move virtual machines largely as they are, with no change of hypervisor, and can close or shrink your data centre.

It is the fastest way out of owning hardware. Licensing terms differ between providers and have changed since the acquisition, so confirm who supplies the VCF subscription and what is included before you compare prices.

Option 3: Move to another hypervisor

Nutanix AHV, Proxmox VE, Microsoft Hyper-V and Red Hat OpenShift Virtualization are the common alternatives. This can cut licence costs sharply, especially for simpler estates.

Check the things around the hypervisor, not just the hypervisor itself:

  • Does your backup product support the new platform?
  • How will disaster recovery and replication work?
  • Will your network and security tools still work?
  • Do your application vendors support the new platform?
  • How much retraining does your team need?

Option 4: Modernise to public cloud

Rather than moving virtual machines as they are, you move applications to cloud virtual machines, managed databases or containers. It takes longer and needs more change, so it fits best for applications that were due for an overhaul anyway.

How the options compare

SpeedLicence costSkills changeRisk
Stay on VCFFastestOften higherNoneLow
Cloud VMware serviceFastDepends on providerLowLow
Another hypervisorMediumOften lowerMediumMedium
Modernise to cloudSlowestVariesHighHigher, with bigger long-term benefit

How to decide

  1. Take an inventory. Count hosts, cores, virtual machines and which VMware features you really use.
  2. Price each option over three to five years. Include licences, hardware, migration effort, training and the cost of running two platforms during the move.
  3. Check application support. One critical application that is only supported on vSphere can settle the question.
  4. Allow a mix. Many businesses keep a smaller VCF core for critical systems and move the rest.

Before you renew, ask for your quote early. Pricing and core minimums are set in the quote, and having time to compare options gives you room to negotiate.

Facing a VMware renewal?

We can inventory your estate and price the options side by side, so you decide with numbers rather than guesses.

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