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 significantly, and many Enterprise organisations are noticing this at their renewal.
What has changed?
Subscriptions only. Perpetual licenses are no longer sold.
Bundles instead of standalone products. The offerings have been reduced to a few bundles, with VMware Cloud Foundation (VCF) and vSphere Foundation (VVF) as the main ones.
Licenses per core. Payment is made 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 organisations, the bill has risen sharply, especially for those who previously only used basic functionality and are now offered a full bundle. Analysts reported in 2026 increases of multiple times the original costs. A first quote is therefore not a final figure.
What is happening now?
In early September 2026, Broadcom executives announced that a new version of vSphere Standard is coming. However, at VMware Explore in Frankfurt (October 13-14), no announcement was made, and by the end of October, Broadcom had not yet published a version, release date, or price. The current vSphere Standard is only available up to version 8 Update 3; the features of vSphere 9 are only included in VVF and VCF. Additionally, the trade press reports that VVF is less widely available in some EMEA countries. So check early which options are on the table for your organisation and base your choice on what Broadcom or your partner confirms in writing.
How to approach your next renewal
Count your cores again. Don’t just take last year’s number; look at the servers you will actually keep.
Choose the right bundle. If you don’t 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 end date is not too early.
How SoftVaro helps
SoftVaro assists you in preparing your VMware renewal: from checking your core count to negotiating the bundle, term, and conditions.
Frequently Asked Questions
The most common 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.
Is this also happening in your organisation?
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