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VMware Licensing After Broadcom: What Changed

What changed in VMware licensing after the Broadcom acquisition: subscription-only bundles, per-core licensing, the 16-core per CPU and 72-core order minimums, and your options.

By the MI Solutions SAM team9 min read2 exhibits

Since Broadcom acquired VMware, VMware licensing has changed substantially. Perpetual licenses have given way to subscriptions, a long product list has been consolidated into a few bundles, and pricing is per physical core with minimums. For many organizations, especially smaller ones, renewal quotes rose sharply.

What changed

01Subscriptions

Perpetual licenses gave way to subscriptions for new purchases, support and updates.

02Bundles

A long product list consolidated into a few bundles, such as VMware Cloud Foundation and VMware vSphere Foundation.

03Per-core pricing

Licensing per physical core, with at least 16 cores counted per CPU.

04Order minimum

From April 10, 2025, each order must cover at least 72 cores.

The minimums in practice

Exhibit 1
Minimums raise the licensed core count for small estatesPhysical vs licensed cores for a three-host estate and a single host0 cores20 cores40 cores60 cores80 cores100 cores120 cores48 coresThree hosts: physicalcores96 coresThree hosts: licensed16 coresOne host: physicalcores72 coresOne host: licensedHosts with two 8-core CPUs. Each CPU is licensed as at least 16 cores; a single-host order is raised to the72-core minimum.Source: Techzine and heise reporting on Broadcom's VMware licensing changes, April 2025.

The 16-core-per-CPU rule has a practical consequence: hosts with many CPUs of few cores each are the least efficient to license. The same workload on fewer, denser CPUs needs fewer licensed cores.

Exhibit 2
Denser CPUs can halve the licensed cores for the same capacityLicensed cores, current hosts vs consolidated hosts, illustrative estates with equal physicalcores8-core CPUs16-core CPUs0 cores100 cores200 cores300 cores64 physical cores64 cores128 cores96 physical cores96 cores192 cores128 physical cores128 cores256 coresIllustrative, before the 72-core per-order minimum, which would lift the smallest case to 72. With 8-core CPUseach CPU is counted as 16 cores; with 16-core CPUs, licensed cores equal physical cores.

What to do

  1. Count cores precisely

    Per host and CPU, applying the 16-core minimum.

  2. Check bundle fit

    Which bundle covers what you actually use, and what you would pay for but not use.

  3. Consolidate hosts

    Where newer, denser hardware reduces CPU count.

  4. Evaluate alternatives

    For some workloads, including public cloud and other hypervisors, with realistic migration costs.

  5. Start early

    Renewal decisions with large infrastructure changes need many months. Late renewal can carry penalties.

VMware renewal preparation

How MI One helps

Frequently asked questions

Can we keep using perpetual VMware licenses?

Existing perpetual licenses may still be usable under their terms, but support and updates now come through subscriptions. Check your agreements.

Do the minimums apply per product?

Reports indicate the 72-core minimum applies per product and cannot be combined across different products.

Is a hardware refresh worth it for licensing alone?

Sometimes. Model the hardware cost against the multi-year licensing difference.

Sources

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