Navigating VMware Changes After Broadcom’s Acquisition

Posted: Dec 2025

Broadcom’s acquisition of VMware has ushered in a new era for virtualization and cloud strategies. While the move promises streamlined offerings and innovation, it has also introduced significant changes to VMware’s licensing model and product portfolio — changes that many organizations are still grappling with. If VMware no longer aligns with your budget or operational needs, now is the time to evaluate alternatives and modernization strategies.

So, What Changed With VMware?

At a high-level, Broadcom has implemented sweeping updates to VMware’s licensing and product structure:

End of Perpetual Licenses
Customers can no longer purchase perpetual licenses. All VMware products now require subscription-based licensing, shifting costs from CapEx to OpEx.
Portfolio Simplification
VMware’s catalog has been consolidated into two primary offerings:
- vSphere Foundation (VVF) – Optimized for private cloud environments.
- VMware Cloud Foundation (VCF) – Designed for hybrid cloud deployments.
Pricing Model Changes
Licensing is now based on per-core usage, with minimum core requirements (up to 72 cores in some cases). Renewal costs have surged — some organizations report increases of 100% to 1,250%.
Impact on Existing Customers
Legacy SKUs like Essentials have been retired, and expired subscriptions can render environments unmanageable, risking downtime and data loss.

Why This Matters

These changes affect not only budgets but also long-term IT strategies. Organizations must decide whether to renew under Broadcom’s new model, migrate to alternative hypervisors, or embrace cloud-native architectures. The shift has sparked widespread evaluation of alternatives and modernization paths.

Exploring Alternatives

If VMware’s new model doesn’t fit your needs, organizations may be considering potential solutions such as:

Proxmox VE – An open-source and cost-effective platform often evaluated for SMBs and labs.
Microsoft Hyper-V – A viable choice for Microsoft-centric environments, included with Windows Server.
Nutanix AHV – A hyperconverged solution that combines compute, storage, and virtualization, commonly reviewed for integrated infrastructure needs.
Scale Computing HyperCore – Offers simplified management, frequently considered for edge and SMB deployments.
HPE Morpheus VM Essentials – A KVM-based virtualization platform with unified workload management and cost reductions, suitable for many VMware migrations.

Bridgehead IT can help assess these platforms and guide you through a seamless migration, minimizing disruption and freeing your team to focus on core business priorities.

Cloud Migration: A Strategic Pivot

For organizations reducing internal resource needs or seeking scalability, migrating to cloud platforms like AWS, Azure, or Google Cloud offers compelling benefits:

AWS – Extensive service portfolio and global reach for hybrid and multi-cloud strategies.
Azure – Seamless integration with Microsoft ecosystems for enterprise workloads.
Google Cloud – Advanced analytics and AI capabilities for data-driven organizations.

Migration strategies range from Rehost (Lift-and-Shift) to Replatform and Refactor, depending on your goals for cost optimization, performance, and modernization. [linkedin.com]

Bridgehead IT provides full assessments and action plans for cloud migration, ensuring security, compliance, and cost control throughout the process.

How Bridgehead IT Can Help

Our team offers:

Hypervisor Evaluation & Migration – Identify the best-fit virtualization platform for your environment.
Cloud Migration Planning & Execution – Move workloads to AWS, Azure, or Google Cloud with minimal downtime.
Lifecycle Asset Management & Procurement – Optimize IT investments and reduce complexity.
Managed IT Services – Ongoing support for infrastructure, security, and compliance.

The Takeaway

Broadcom’s changes to VMware licensing and product offerings represent both a challenge and an opportunity. Whether you choose to stay with VMware under its new model, explore alternative hypervisors, or migrate to the cloud, Bridgehead IT is here to guide you every step of the way.