SparkDBi
VMware’s pricing model looks nothing like it did before Broadcom acquired the company in November 2023. Perpetual licenses are gone. A catalog that once ran over 160 separate products and bundles has been consolidated into a handful of subscription tiers, priced per CPU core with a 16-core minimum per processor regardless of how many cores a server actually has. For a lot of IT teams running dense, modern hardware, that change alone increased the licensed footprint even before any price-per-core increase is factored in.
VMware under Broadcom moved to subscription-only, per-core licensing with a 16-core minimum per CPU, and independent estimates put the resulting cost increase at roughly 10 to 30% for equivalent capacity, with some multi-year scenarios exceeding 100%. That shift is what’s driving real evaluation of alternatives across companies that have run VMware for a decade or more.
What Actually Changed Under Broadcom
Three changes account for most of the disruption. First, perpetual licenses were discontinued entirely; VMware is subscription-only now. Second, the sprawling pre-acquisition catalog was consolidated into a small number of bundles, primarily VMware Cloud Foundation and VMware vSphere Foundation, which means customers who only used a subset of what they were licensed for now often pay for capability bundled in whether they use it or not. Third, licensing moved from per-processor to per-core, with a 16-core-per-CPU minimum that particularly affects anyone running newer, higher-core-count servers, since the licensed cost doesn’t scale down even if the actual workload doesn’t need that many cores.
The Real Cost Impact
Numbers circulating for the Broadcom price increase range widely, and the largest figures, claims of 1,000% increases or more, mostly trace back to vendors selling VMware alternatives, which have an obvious interest in the story looking as dramatic as possible. A more measured assessment from IT licensing specialists puts the realistic increase at roughly 10 to 30% for equivalent capability under the new model, with some multi-year cost comparisons running past 100% once the compounding subscription structure is factored in over several renewal cycles. That range is still a meaningful, budget-relevant increase for any organization running VMware at scale. It just isn’t the ten-times-the-cost story some outreach uses to grab attention, and pitches built on the inflated numbers tend to lose credibility fast with IT buyers who’ve already run their own math.
Where Companies Are Migrating
The alternative virtualization landscape breaks roughly into a few camps: Microsoft Hyper-V for organizations already deep in the Microsoft ecosystem, Nutanix and other hyperconverged platforms for those wanting a single vendor to replace VMware’s compute-and-storage combination, Proxmox for cost-sensitive and open-source-leaning IT teams, and Red Hat OpenShift Virtualization for organizations already standardized on Red Hat elsewhere. None of these is a drop-in replacement; every migration off VMware involves real technical work, which is exactly why the decision usually starts with an evaluation phase well before anything actually moves.
19,862 Companies, One Targeting Problem
SparkDBi’s TechInstall data currently tracks 19,862 verified companies running some form of VMware infrastructure, including 4,104 specifically on VMware vSphere, the product line most directly affected by the Broadcom licensing changes. That’s the practical targeting list for hyperconverged infrastructure vendors, cloud migration consultants, and managed service providers selling virtualization alternatives: not a generic IT decision-maker list, but companies with a confirmed, current VMware footprint and, as of the licensing changes, a real reason to be evaluating what replaces it.
Generic firmographic targeting, company size, industry, revenue, can’t tell you which of those companies is actually running VMware. Technographic data is the layer that makes that distinction, and it’s the difference between a cold virtualization pitch and one aimed at a company already living with the cost increase.
What This Means If You Sell Virtualization or Cloud Migration Services
Two things matter for outreach here. First, lead with the real 10 to 30% figure, not an inflated one; VMware customers evaluating this decision have generally already seen their own renewal quote and will discount a pitch that doesn’t match what they’re actually looking at. Second, target specifically: a company running VMware Server, an old, largely discontinued product, is a very different prospect than one running current vSphere Foundation under the new licensing model. Segmenting the install base by product, not just by “runs VMware” broadly, is what separates a relevant pitch from a wasted one.
Key Takeaways
- Broadcom moved VMware to subscription-only, per-core licensing with a 16-core-per-CPU minimum, consolidating a 160-plus product catalog into a handful of bundles.
- Realistic cost increases run roughly 10 to 30% for equivalent capacity; claims of 1,000%-plus increases mostly originate from vendors selling alternatives.
- Hyper-V, Nutanix, Proxmox, and Red Hat OpenShift Virtualization are the most commonly evaluated alternatives, each suited to a different existing tech stack.
- SparkDBi tracks 19,862 companies running VMware, including 4,104 specifically on vSphere, with decision-maker contacts for targeted outreach.
Frequently Asked Questions
Why did VMware pricing increase under Broadcom?
Broadcom eliminated perpetual licensing in favor of subscription-only pricing, consolidated VMware’s product catalog into a small number of bundles, and moved to per-core licensing with a 16-core minimum per CPU. Together, these changes increased the effective cost for many customers, independent of any explicit price-per-unit increase.
Is VMware still available with perpetual licenses?
No. Broadcom discontinued new perpetual license sales following the acquisition. Existing perpetual license holders can generally continue using what they have, but new purchases are subscription-only.
What are the best VMware alternatives?
The most commonly evaluated alternatives are Microsoft Hyper-V, Nutanix, Proxmox, and Red Hat OpenShift Virtualization, with the right fit depending heavily on an organization’s existing infrastructure and vendor relationships.
How much more does VMware cost under the new licensing model?
Independent estimates put the realistic increase at roughly 10 to 30% for equivalent capability, with some multi-year cost comparisons exceeding 100%. Figures claiming 1,000%-plus increases generally come from vendors selling competing products.
Do companies need to migrate off VMware immediately?
No. Existing deployments continue running under current licensing terms. The pressure comes at renewal time, which is why most organizations are in an evaluation phase now rather than an active migration, unless their renewal has already come due.
How can I find companies still running VMware for outreach?
Technographic data tracks what infrastructure a company actually has installed, including specific VMware products. SparkDBi’s TechInstall data covers VMware alongside hundreds of other platforms, segmented by specific product, with verified decision-maker contacts.
Want the list of companies still running VMware, segmented by product, with verified decision-maker contacts? Get 50 free samples, or talk to SparkDBi about a dataset sized to your outreach volume.