The virtualization landscape has undergone a seismic shift following Broadcom’s acquisition of VMware. One of the most significant changes that has left many organizations scrambling is the discontinuation of perpetual licensing, which officially ended on February 5, 2024. This transition marks a fundamental change in how businesses will access and pay for VMware solutions going forward.
The New Reality: Subscription-Only Model
Gone are the days when organizations could purchase VMware licenses outright and maintain them indefinitely with optional support renewals. The new VMware by Broadcom has eliminated this option entirely, forcing all customers into a subscription-based model that primarily charges per CPU core. This shift represents more than just a pricing change—it’s a complete restructuring of how VMware monetizes its technology.
For businesses that relied on the predictability and long-term cost control of perpetual licenses, this change introduces new budgeting challenges. Organizations must now factor in ongoing subscription costs as operational expenses rather than capital investments, fundamentally altering their IT financial planning.
Dramatically Reduced Product Portfolio
Perhaps equally disruptive is the dramatic reduction in VMware’s product offerings. The extensive catalog that once provided solutions for virtually every virtualization need has been streamlined to just four core offerings:
- VMware vSphere Essentials Plus (limited to 3 hosts with up to 96 cores)
- VMware vSphere Standard
- VMware vSphere Foundation
- VMware Cloud Foundation
This consolidation means many specialized tools and niche solutions that organizations have come to depend on are no longer available through VMware’s primary portfolio. While Carbon Black and End User Computing (EUC) product lines continue as independent Broadcom divisions, the core virtualization stack has been significantly simplified.
Impact on VMware Registered Partners
The changes have created particular challenges for existing VMware Registered Partners and their clients. Many partners are grappling with how to serve customers who were expecting to renew perpetual licenses or purchase additional perpetual licensing for expansion projects. The abrupt transition has left some partners unable to fulfill their clients’ traditional licensing needs, creating gaps in service and support.
Customers who have built long-term infrastructure plans around perpetual licensing models now find themselves needing to rapidly adapt to subscription-based budgeting and planning. This transition period has been particularly challenging for organizations with complex licensing arrangements or those in the middle of multi-year infrastructure projects.
Your Path Forward with GCSIT
If you’re a customer of a previous VMware Registered Partner who can no longer meet your VMware licensing needs, GCSIT is here to help bridge that gap. We understand the complexity of this transition and are equipped to guide you through the new VMware by Broadcom landscape.
Our team can help you evaluate the new subscription offerings, understand the per-core pricing model, and develop a licensing strategy that aligns with your business objectives and budget constraints. We recognize that this isn’t just about purchasing licenses—it’s about ensuring your virtualization infrastructure continues to support your business operations effectively.
The end of perpetual licensing doesn’t mean the end of cost-effective VMware solutions. With the right partner and strategy, organizations can navigate this transition successfully while maintaining the virtualization capabilities their business depends on.
Ready to discuss your VMware licensing needs? Contact GCSIT today to explore how we can support your organization through this significant transition and ensure your virtualization infrastructure remains robust and cost-effective in the new subscription era.