{"id":922,"date":"2025-11-03T13:24:45","date_gmt":"2025-11-03T11:24:45","guid":{"rendered":"https:\/\/www.cloudtango.net\/blog\/?p=922"},"modified":"2025-11-03T13:24:45","modified_gmt":"2025-11-03T11:24:45","slug":"vmware-price-increase-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.cloudtango.net\/blog\/2025\/11\/03\/vmware-price-increase-what-you-need-to-know\/","title":{"rendered":"VMware Price Increase: What You Need to Know"},"content":{"rendered":"<div class=\"elementor-element elementor-element-80fbbe7 post_featured_image elementor-widget__width-inherit elementor-hidden-tablet elementor-hidden-mobile elementor-widget elementor-widget-theme-post-featured-image elementor-widget-image\" data-id=\"80fbbe7\" data-element_type=\"widget\" data-settings=\"{&quot;_animation&quot;:&quot;none&quot;}\" data-widget_type=\"theme-post-featured-image.default\">\n<div class=\"elementor-widget-container\"><img loading=\"lazy\" decoding=\"async\" class=\"attachment-large size-large wp-image-42324\" src=\"https:\/\/corsicatech.com\/wp-content\/uploads\/2025\/10\/VMware-Price-Increase-What-You-Need-to-Know-Corsica-Technologies-1024x576.webp\" alt=\"VMware Price Increase What You Need to Know - Corsica Technologies\" width=\"800\" height=\"450\" \/><\/div>\n<\/div>\n<div class=\"elementor-element elementor-element-af2ed11 elementor-widget elementor-widget-theme-post-content\" data-id=\"af2ed11\" data-element_type=\"widget\" data-widget_type=\"theme-post-content.default\">\n<div class=\"elementor-widget-container\">\n<p>In April 2025, VMware introduced\u00a0<a href=\"https:\/\/www.crn.com\/news\/data-center\/2025\/broadcom-vmware-ups-minimum-core-purchase-substantially-levies-late-renewal-penalties\" rel=\"noreferrer noopener\">significant alterations to their pricing structure<\/a>. The changes have affected all customers and all products. Broadcom has responded to initial backlash, and the situation may continue to evolve. However, customers should plan on some form of altered pricing becoming permanent.<\/p>\n<p>Many Corsica clients have already adapted to the changes as they stand today, but we\u2019re working with others to determine the best path forward. Regardless of your use cases, your budget, or your strategic priorities, there\u2019s a lot to know as you navigate virtualization in this new market landscape.<\/p>\n<p>We\u2019ve got all the details in this post\u2014PLUS VMware cost optimization tactics and alternative technologies.<\/p>\n<p><strong>Key takeaways:<\/strong><\/p>\n<ul class=\"wp-block-list\">\n<li>VMware\u2019s price increase is driven by a new subscription-based model and a new 72-core minimum purchase (per product or order line) coupled with per-core licensing.<\/li>\n<li>Low-core CPUs will generate the most significant price increases for customers of all sizes.<\/li>\n<li>Core consolidation is the best way to optimize costs while sticking with VMware.<\/li>\n<li>Microsoft Hyper-V and other options provide helpful alternatives where VMware is no longer a fit.<\/li>\n<\/ul>\n<div class=\"wp-block-spacer\" aria-hidden=\"true\"><\/div>\n<h2 id=\"h-what-is-the-vmware-price-increase\" class=\"wp-block-heading\">What is the VMware price increase?<\/h2>\n<p>Broadcom acquired VMware in 2023. That transaction has led to a shift in VMware\u2019s pricing model starting in 2025. There are several significant changes to VMware\u2019s licensing.<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>Subscription-based licensing has replaced perpetual licensing<\/strong>. Customers must now pay recurring fees for VMware products rather than making a one-time purchase and owning the software license perpetually.<\/li>\n<li><strong>Customers can\u2019t purchase fewer than 72 licenses<\/strong>. VMware\u2019s previous minimum license count was 16, but now customers must buy licenses for at least 72 cores. (Note that the required minimum 16 cores per CPU has not changed, only the minimum license count per product or order line.)<\/li>\n<li><strong>Customers must pay a 20% fee for late renewals<\/strong>. While VMware always had a late renewal fee in place, it has increased to 20%.<\/li>\n<li><strong>VMware has consolidated its catalog to fewer, bundled offerings.\u00a0<\/strong>These bundles are not flexible, meaning customers must pay for every product or feature included in a given bundle.<\/li>\n<li><strong>Software is now licensed per core<\/strong>, with a minimum of 16 cores per CPU. Customers will be billed for 16 cores per CPU even if their CPU has fewer cores.<\/li>\n<\/ul>\n<div class=\"wp-block-spacer\" aria-hidden=\"true\"><\/div>\n<h2 id=\"h-how-is-the-vmware-price-increase-affecting-customers\" class=\"wp-block-heading\">How is the VMware price increase affecting customers?<\/h2>\n<p>Every VMware customer is affected by these changes. While customers of all sizes are experiencing technical effects, smaller customers may also experience significant financial effects.<\/p>\n<p>Here are some of the largest impacts we\u2019re seeing among clients.<\/p>\n<h3 id=\"h-impact-on-smbs-and-midmarket\" class=\"wp-block-heading\">Impact on SMBs and midmarket<\/h3>\n<p>VMware has retired the Essentials Plus Kit, a bundle that gave SMBs and midmarket companies access to sophisticated features at a lower price point.<\/p>\n<p>VMware\u2019s new 16-core minimum also impacts smaller businesses with lower CPU usage, forcing them to pay for 16 cores per CPU whether they have 16 or not.<\/p>\n<h3 id=\"h-impact-on-enterprise-customers\" class=\"wp-block-heading\">Impact on enterprise customers<\/h3>\n<p>Enterprise customers may feel similar impacts as smaller companies, including reduced flexibility in product bundling and the impact of the 72-core minimum requirement per CPU. This will be especially true for enterprise customers that have a large number of CPUs with a low number of cores per CPU, as customers are now forced to pay for 72 cores per CPU whether they have that many or not.<\/p>\n<div class=\"wp-block-spacer\" aria-hidden=\"true\"><\/div>\n<h2 id=\"h-how-will-the-72-core-minimum-affect-my-small-servers\" class=\"wp-block-heading\">How will the 72-core minimum affect my small servers?<\/h2>\n<p>Unfortunately, small servers will see the largest impact from VMware\u2019s new 72-core licensing minimum. New orders require licensing at least 72 cores per product, with the 16 core per CPU minimum still in effect.<\/p>\n<p>This will affect several types of use cases.<\/p>\n<ul class=\"wp-block-list\">\n<li>Small businesses<\/li>\n<li>Branch offices<\/li>\n<li>Edge CPUs<\/li>\n<li>Any use case in which fewer cores are distributed over more servers<\/li>\n<\/ul>\n<div class=\"wp-block-spacer\" aria-hidden=\"true\"><\/div>\n<figure class=\"wp-block-image size-large has-custom-border\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-42118\" src=\"https:\/\/corsicatech.com\/wp-content\/uploads\/2025\/10\/vmware-price-increase-1024x576.webp\" alt=\"VMware price increase - Corsica Technologies\" width=\"1024\" height=\"576\" \/><\/figure>\n<div class=\"wp-block-spacer\" aria-hidden=\"true\"><\/div>\n<h2 id=\"h-can-we-negotiate-or-grandfather-existing-vmware-contracts\" class=\"wp-block-heading\">Can we negotiate or grandfather existing VMware contracts?<\/h2>\n<p>Theoretically, yes. VMware may negotiate with a customer for short-term pricing to make the transition easier. In most cases, however, and for most customers, it\u2019s unlikely that VMware will budge on their new pricing policies. Companies should enter negotiations with a well-defined BATNA (best alternative to a negotiated agreement).<\/p>\n<div class=\"wp-block-spacer\" aria-hidden=\"true\"><\/div>\n<h2 id=\"h-is-corsica-technologies-still-a-vmware-reseller\" class=\"wp-block-heading\">Is Corsica Technologies still a VMware reseller?<\/h2>\n<p>No. Broadcom restructured its partner program, requiring existing resellers to reapply under more restrictive criteria. Like many MSPs, Corsica Technologies will no longer be a reseller going forward. We can help our clients connect with another reseller, but we cannot sell directly.<\/p>\n<div class=\"wp-block-spacer\" aria-hidden=\"true\"><\/div>\n<h2 id=\"h-are-there-alternatives-to-vmware-that-have-lower-licensing-costs\" class=\"wp-block-heading\">Are there alternatives to VMware that have lower licensing costs?<\/h2>\n<p>There are several alternatives to VMware that may present lower costs in specific use cases. Here are some of the leading providers.<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>Microsoft Hyper-V\u00a0<\/strong>is built into Windows Server, and it\u2019s a great choice for Microsoft customers.<\/li>\n<li><strong>Nutanix<\/strong>\u00a0is a great provider for hyperconverged infrastructure (HCI).<\/li>\n<li><strong>Proxmox VE<\/strong>\u00a0offers open-source virtualization and web-based management.<\/li>\n<li><strong>OpenStack<\/strong>\u00a0is another open-source option that\u2019s highly customizable.<\/li>\n<li><strong>Oracle VM<\/strong>\u00a0is a great option for companies that use Oracle products.<\/li>\n<\/ul>\n<div class=\"wp-block-spacer\" aria-hidden=\"true\"><\/div>\n<h2 id=\"h-how-complicated-is-it-to-migrate-from-vmware-to-an-alternative\" class=\"wp-block-heading\">How complicated is it to migrate from VMware to an alternative?<\/h2>\n<p>In most cases, migrating off of VMware is a complex project requiring significant planning and coordination. While the licensing costs for an alternative solution may be lower, the migration project will create its own costs, which aren\u2019t insignificant. Switching providers also has the potential to disrupt operations, as it\u2019s essentially a server migration.<\/p>\n<p>In some cases, migrating off VMware may be justified. In others, it may not be worth the cost and effort. If you\u2019re unsure, we\u2019re happy to help you determine the best path forward for your organization.<\/p>\n<div class=\"wp-block-spacer\" aria-hidden=\"true\"><\/div>\n<h2 id=\"h-how-can-we-optimize-costs-while-keeping-vmware\" class=\"wp-block-heading\">How can we optimize costs while keeping VMware?<\/h2>\n<p>For many customers, VMware may still be the best option. Switching to another provider may create too much pain or operational impact, or VMware may have essential features on which the business depends.<\/p>\n<p>Whatever the reason, there are several ways to optimize costs while retaining VMware products.<\/p>\n<ol class=\"wp-block-list\">\n<li><strong>Right-size your environment<\/strong>. Audit your virtual machine usage and eliminate over-provisioning. Try to consolidate workloads onto fewer, higher-density servers to maximize the vale of your core licenses.<\/li>\n<li><strong>Pick the right bundle<\/strong>. If you don\u2019t need advanced networking or storage features, choose vSphere Foundation (VVF) rather than VMware Cloud Foundation (VCF). This way, you don\u2019t pay for extras like NSX or vSAN.<\/li>\n<li><strong>Negotiate the longest contract you can afford<\/strong>\u00a0at today\u2019s pricing. This will lock you in and protect you against price increases.<\/li>\n<li><strong>Consider VMware Cloud Services<\/strong>. VMware Cloud on a major cloud platform can simplify your VMware licensing. Of course, the use case needs to be a good fit for the cloud beyond the potentially beneficial licensing.<\/li>\n<li><strong>Optimize your core count<\/strong>. If you have nine servers today, each with eight cores, can you consolidate those into one server with 72 cores? It won\u2019t be possible in all cases, but applying this principle can align your VM architecture with VMware\u2019s new pricing rules.<\/li>\n<li><strong>Offload non-critical workloads<\/strong>\u00a0to non-VMware environments. For example, try running Microsoft Hyper-V on dev or test environments while keeping VMware on production environments.<\/li>\n<\/ol>\n<div class=\"wp-block-spacer\" aria-hidden=\"true\"><\/div>\n<h2 id=\"h-the-takeaway-do-your-homework-and-understand-your-priorities\" class=\"wp-block-heading\">The takeaway: Do your homework and understand your priorities<\/h2>\n<p>While VMware\u2019s pricing changes are significant, they don\u2019t have to disrupt your business. The key is to understand your virtualization requirements, understand VMware\u2019s new pricing policies, and choose the best way forward for your organization. Here at Corsica Technologies, we\u2019ve helped 1,000+ clients solve their business problems through technology. Contact us today, and let\u2019s figure out the right virtualization strategy for your organization.<\/p>\n<\/div>\n<\/div>\n<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-86df10d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"86df10d\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n<div class=\"elementor-container elementor-column-gap-default\">\n<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-fd4ed22\" data-id=\"fd4ed22\" data-element_type=\"column\">\n<div class=\"elementor-widget-wrap elementor-element-populated\">\n<div class=\"elementor-element elementor-element-7070e01 elementor-widget elementor-widget-image\" data-id=\"7070e01\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n<div class=\"elementor-widget-container\"><img decoding=\"async\" title=\"\" src=\"https:\/\/corsicatech.com\/wp-content\/uploads\/2024\/10\/gwiesenberg_crop-150x150.jpg\" alt=\"\" \/><\/div>\n<\/div>\n<div class=\"elementor-element elementor-element-5421dea elementor-widget elementor-widget-heading\" data-id=\"5421dea\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n<div class=\"elementor-widget-container\">\n<h5 class=\"elementor-heading-title elementor-size-default\">Garrett Wiesenberg<\/h5>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-71bb53f\" data-id=\"71bb53f\" data-element_type=\"column\">\n<div class=\"elementor-widget-wrap elementor-element-populated\">\n<div class=\"elementor-element elementor-element-769fe4e elementor-widget elementor-widget-text-editor\" data-id=\"769fe4e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n<div class=\"elementor-widget-container\">With over a decade of experience in IT, Garrett Wiesenberg brings deep technical expertise and a strong commitment to strategic problem-solving. For the past four years, he has focused on architecting and delivering advanced solutions for managed clients, consistently aligning technology with business outcomes. Garrett\u2019s career has spanned a variety of roles\u2014from service desk technician to senior network engineer\u2014and now, as Vice President of Solution Consulting, he leads with a hands-on, business-focused approach. He holds several industry-recognized certifications, including CCNA Route &amp; Switch, CCNA Security, CCNA Wireless, MCSA: Server 2012 R2, MCSA: O365 Administration, NSE 1\u20133, and CMNA.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>In April 2025, VMware introduced\u00a0significant alterations to their pricing structure. The changes have affected all customers and all products. Broadcom has responded to initial backlash, and the situation may continue to evolve. However, customers should plan on some form of altered pricing becoming permanent. Many Corsica clients have already adapted to the changes as they[\u2026] <a class=\"read-more\" href=\"https:\/\/www.cloudtango.net\/blog\/2025\/11\/03\/vmware-price-increase-what-you-need-to-know\/\">Read<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" enable-background=\"new 0 0 24 24\" height=\"16px\" viewBox=\"0 0 24 24\" width=\"16px\" fill=\"#091926\"><rect fill=\"none\" height=\"16\" width=\"16\"\/><path d=\"M14.29,5.71L14.29,5.71c-0.39,0.39-0.39,1.02,0,1.41L18.17,11H3c-0.55,0-1,0.45-1,1v0c0,0.55,0.45,1,1,1h15.18l-3.88,3.88 c-0.39,0.39-0.39,1.02,0,1.41l0,0c0.39,0.39,1.02,0.39,1.41,0l5.59-5.59c0.39-0.39,0.39-1.02,0-1.41L15.7,5.71 C15.32,5.32,14.68,5.32,14.29,5.71z\"\/><\/svg><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,31],"tags":[],"class_list":["post-922","post","type-post","status-publish","format-standard","hentry","category-hyper-convergence","category-virtualization"],"_links":{"self":[{"href":"https:\/\/www.cloudtango.net\/blog\/wp-json\/wp\/v2\/posts\/922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cloudtango.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cloudtango.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cloudtango.net\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cloudtango.net\/blog\/wp-json\/wp\/v2\/comments?post=922"}],"version-history":[{"count":2,"href":"https:\/\/www.cloudtango.net\/blog\/wp-json\/wp\/v2\/posts\/922\/revisions"}],"predecessor-version":[{"id":929,"href":"https:\/\/www.cloudtango.net\/blog\/wp-json\/wp\/v2\/posts\/922\/revisions\/929"}],"wp:attachment":[{"href":"https:\/\/www.cloudtango.net\/blog\/wp-json\/wp\/v2\/media?parent=922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cloudtango.net\/blog\/wp-json\/wp\/v2\/categories?post=922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cloudtango.net\/blog\/wp-json\/wp\/v2\/tags?post=922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}