Since Broadcom’s acquisition of VMware, the licensing model has undergone a radical shift that is already sparking debate in the tech industry. Starting in 2024, a subscription-based system was introduced, eliminating perpetual licenses and forcing customers to adopt an annual subscription model.
Broadcom has once again implemented a major change in its licensing model for VMware, which has had a significant impact on the tech industry. Starting in April 2025, the new licensing policy will require a minimum purchase of 72 cores for all renewals and new acquisitions. This adjustment has been perceived by many companies as a measure that could limit access to these solutions, especially for small and medium-sized businesses.

What has changed?

• Goodbye to perpetual licenses: VMware has fully transitioned to a subscription-only model.

• 72-core minimum: Regardless of the size or needs of the virtualized environment, this is now the starting point.

• Penalties for late renewals: Surcharges of up to 20% are applied if licenses are not renewed on time, forcing stricter budget planning

The Problem for Small and Medium-Sized Businesses (SMBs)

Many small businesses use VMware to support relatively simple environments, often with workloads that don’t exceed 8 or 16 cores. The new licensing model forces them to pay for resources they are unlikely to use, significantly increasing their operational costs.

What Alternatives Are Being Considered?

• Migrating to open source or low-cost solutions such as Proxmox, XCP-ng, Nutanix CE, or Huawei DCS.

• Rethinking their virtualization models to better align with current needs and budgets.

• Outsourcing to managed service providers that offer more flexible licensing and support options.

• For larger companies, a potential migration to Azure VMware Solution (AVS) is also being evaluated.

Final Considerations

Broadcom’s move is pushing many organizations to reassess their infrastructure strategy. This is a key moment to open the conversation around virtualization, cost-efficiency, and long-term technology sustainability. Adapting is essential—but doing so in an informed and strategic way will make all the difference.