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