For many organisations, VMware has been a dependable foundation for virtualisation, business-critical applications and infrastructure operations for years. But since Broadcom’s acquisition of VMware, the commercial model around VMware licensing has changed significantly and for some customers, the cost impact has been dramatic.
We are already seeing examples where renewal costs have increased from hundreds of pounds to tens of thousands over a relatively short period. One customer scenario saw VMware costs move from around £800 to approximately £85,000 over three years. While every environment is different, this level of change highlights why organisations can no longer afford to treat VMware renewals as a routine procurement exercise.
The move away from perpetual licensing, the shift towards subscription-based models, the consolidation of product options into fewer bundles and the use of per-core licensing have all changed the economics of VMware. Industry commentary has also highlighted minimum core requirements, reduced flexibility and the risk of higher costs at renewal as key areas for IT and finance teams to understand before contracts expire.
Why this matters now
For customers approaching renewal, the challenge is not just that VMware may cost more. It is that the decision-making window is getting smaller. With further licensing and renewal changes expected from October, organisations relying on current licence renewal routes may find that familiar options are no longer available, forcing a move to a new model at a higher price point.
That creates a difficult position for IT teams: renew quickly and potentially accept a significant increase, delay and risk fewer options, or use the time now to understand whether VMware is still the right platform for every workload.
What has changed?
- Licensing has moved towards subscription. Perpetual licence models are no longer available, and support or renewal options may be limited depending on the contract position.
- Product choice has been simplified, but not always in the customer’s favour. VMware’s portfolio has been consolidated into fewer bundles, which can mean paying for more functionality than an organisation actively uses.
- Costs are increasingly tied to core counts. Per-core licensing and minimum core requirements can make smaller or legacy environments disproportionately expensive.
- Renewal timing matters more than ever. Missing renewal dates, waiting too long or assuming that historic renewal options will remain available can materially affect the commercial outcome.
The real risk: making a rushed decision
When renewal costs rise unexpectedly, it is tempting to focus only on the price. But the better question is: what role should VMware play in your infrastructure strategy going forward?
For some organisations, staying with VMware may still be the right answer. For others, it may be time to look at alternative virtualisation platforms, hyperconverged infrastructure, cloud migration, workload consolidation, or a phased exit strategy. The important thing is to make that decision with a clear view of cost, risk, operational impact and future requirements.
What should you do before your next renewal?
- Review your current VMware estate. Understand what you have, what you use and what is business critical.
- Check your renewal dates. Identify when your current agreements expire and what options remain available before October.
- Model the cost impact. Compare current spend against projected renewal costs under the new model.
- Assess alternatives. Consider whether every workload needs to remain on VMware or whether other platforms could reduce cost and improve flexibility.
- Get expert advice early. The sooner you start, the more room you have to negotiate, plan and avoid a forced decision.
How Koris365 can help
At Koris365, our experts can help you understand the impact of VMware licensing changes on your organisation and explore the options available. Whether you are looking to renew, optimise, migrate or simply understand your position before October, we can help you make an informed decision.
Book a 15-minute call with our experts to review your VMware renewal position and understand your options before costs rise further.
