VMware licensing change: impact, 72 cores, and alternatives

This year, many companies are rethinking their virtualisation strategy following radical changes in VMware licensing. The acquisition by Broadcom has brought with it several decisive changes.

Table of contents:

As we said, the acquisition by Broadcom has brought with it a new subscription model, price increases and requirements such as a minimum of 72 cores per product, which is directly impacting the cost and flexibility of many IT infrastructures. In this article, we look at how this change affects you, why so many companies are migrating and what alternatives exist to continue to ensure the performance, control and efficiency of your critical systems, such as ERP and MES.

What has changed at VMware with Broadcom in 2025?

VMware Broadcom: Why the licensing model changed.

Since Broadcom bought VMware, the business model has been refocused on a recurring revenue strategy. This has involved a complete transformation of its licensing policy, with a greater focus on subscriptions, product consolidation and new, more restrictive contract terms.

VMware licensing: from perpetual to subscription

One of the biggest changes has been the abandonment of perpetual licensing. Instead, VMware now only offers subscription licensing, with bundles that include multiple products and less flexible terms. This means that customers must renew every year or for an agreed period, increasing their dependency on the vendor.

Price increases and loss of flexibility

This is compounded by escalating prices, with increases that have exceeded 100% in several cases. Small and medium-sized organisations are particularly affected, as they lose the possibility of adapting the cost of licenses to their actual infrastructure.

The 72-core minimum in VMware: what it means and how it affects them

Broadcom VMware 72 cores: what is it and why is it a concern?

As of April 2025, Broadcom is mandating a minimum of 72 cores per product in every order. This means that even if a company only needs 32 cores for its virtualised environment, it must pay as if it were using 72. This practice causes forced over-licensing and dramatically raises the cost.

How does it increase the real cost (TCO)

TCO (Total Cost of Ownership) is driven up not only by the base price, but also by the need to purchase unused licenses. This affects the profitability of many environments, especially in low-density virtual infrastructure or VDI environments.

Who is most affected? SMBs vs. large enterprises

While large corporations can negotiate global contracts or absorb the extra cost, SMBs and MSPs (managed service providers) are forced to completely rethink their virtualisation strategy.

Why are so many companies looking for an alternative to VMware?

Unpredictable cost and more rigid renewals

Lack of pricing predictability and restrictive renewal terms create budget uncertainty. Subscription model eliminates the possibility of long-term planning and forces urgent migrations.

Risk of vendor lock-in

Migrating from VMware involves considerable cost and effort, so many companies have become captive to the ecosystem. This dependence limits the ability to innovate and adapt to new technological scenarios.

Pressure to optimise infrastructure and IT budget

In a context of digital transformation and cost control, organisations are forced to look for solutions that allow them to remain competitive without compromising security or scalability.

Alternatives to VMware ESXi in 2025: which ones are the most robust?

Proxmox VE (open source)

Based on Debian and with KVM hypervisor, Proxmox is a powerful alternative, especially for midsize environments or those with open source experience. It offers migration from VMware, optional enterprise support and a very active community.

Microsoft Hyper-V (Microsoft ecosystem)

For enterprises with Windows-based infrastructure, Hyper-V is a natural choice. It comes bundled with Windows Server and enables virtualisation without additional hypervisor licensing costs.

Nutanix AHV (hyperconverged)

Nutanix offers a hyperconverged infrastructure solution with a hypervisor included. Its per-node licensing model and performance make it an attractive option for corporate environments.

Xen (if you are looking for a specific option)

Xen is less common today, but still a viable option for organisations with specific needs or legacy integrations.

Quick guide: how to migrate from VMware without stopping the business

1. Pre-checklist: inventory, loads and dependencies

Before migrating, it is crucial to have a clear map of the entire infrastructure: VMs, networks, storage and dependencies. This reduces errors and improves planning.

2. Migrating from VMware to Proxmox: key steps

• Export virtual machines (OVF or VMDK).
• Validate KVM compatibility.
• Adjust network and storage configurations.
• Test in staging environment.

Migrate VMware virtual machine to Xen: when does it make sense?

Xen can be an alternative in specific sectors or with light loads. Migration requires disk conversion and manual integration, but is viable for certain scenarios.

4. Pilot plan and progressive migration to reduce risk

Do not migrate everything at once. Implement a pilot environment, test real loads and scale progressively. This allows you to validate compatibilities and mitigate errors.

Virtualisation and cloud: how hybrid strategy fits in 2026

Virtual on-prem + cloud infrastructure

Today, a hybrid architecture is the norm: part on-premise, part cloud. Today's solutions must allow you to move loads between the two environments with ease.

How to avoid hidden costs in cloud virtualisation

Many cloud solutions hide costs associated with storage, network or backup. Comparing metrics such as actual TCO and outbound costs is essential.

Virtual desktop infrastructure: what to check if you use VDI

In VDI environments, changes in VMware can directly affect performance and cost per user. Evaluating hybrid or cloud solutions (such as Azure Virtual Desktop) can be key to reducing dependency.

How to make the right decision

What to choose based on your type of business

• SMB: Proxmox is ideal for cost and flexibility.
• Microsoft companies: Hyper-V integrates perfectly.
• Large environments with cloud strategy: Nutanix AHV or hybrid solutions with public cloud.

Keys to reduce cost without losing control

• Avoid over-licensing (such as 72-core minimum).
• Evaluate alternatives based on compatibility and support.
• Design a safe and progressive migration.

In a context where costs, technology dependency and flexibility have become critical challenges, evaluating your current infrastructure is imperative. Modernising your systems with more agile and cost-effective solutions can make the difference in your competitiveness.

Contact us and find out how to modernise your infrastructure with more efficient ERP, MES and virtualisation technologies.