VMware after Broadcom: where Enterprise organisations stand now
Almost three years after Broadcom's acquisition of VMware, many organizations feel the impact at every renewal. What has changed and how do you approach your next renewal?
- September 22, 2026
- 5 min
Broadcom completed the acquisition of VMware in November 2023. Since then, the licensing model has changed dramatically, and many Enterprise organizations notice this at their renewal.
What has changed?
Subscriptions only. Perpetual licenses are no longer sold.
Bundles instead of standalone products. The offering has been reduced to a few bundles, with VMware Cloud Foundation (VCF) and vSphere Foundation (VVF) as the main ones.
Licenses per core. Payment is per processor core, with a minimum of 16 cores per processor, even if a server has fewer.
No public price list. Prices go through Broadcom and its partners.
What does this mean for costs?
For many organizations, the bill has increased significantly, especially for those who previously used only basic functionality and are now offered a full bundle. Analysts reported cost increases in 2026 of several times the original amount. An initial quote is therefore not an endpoint.
What's happening now?
In September 2026, Broadcom announced a new version of vSphere Standard; price and terms are expected to be announced around mid-October. Also, the trade press reports that VVF is less available in some EMEA countries. So check early which options are available for your organization.
How to approach your next renewal
Count your cores again. Don’t just use last year’s number; check the servers you will actually retain.
Choose the right bundle. If you don’t use the extra components of VCF, explore whether a smaller bundle suffices.
Price an alternative. A seriously calculated alternative strengthens your position, even if you eventually stay.
Negotiate term and price protection. A multi-year term can lock in the price.
Start early. Six months before expiry is no luxury.
How SoftVaro helps
SoftVaro assists you in preparing your VMware renewal: from verifying your core count to negotiating bundle, term, and conditions.
Frequently Asked Questions
The most asked questions about this topic.
Is switching to another platform an option?
For some organizations, yes, but migration takes time and carries risks. Even if you stay, a calculated alternative strengthens your negotiating position.
When should I start my VMware renewal?
At least six months before the end date. That gives you time to check your core count, price an alternative, and negotiate.
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