Keeping you informed on Broadcom’s acquisition of VMware

On the 22nd November 2023, Broadcom officially acquired VMware, now known as VMware by Broadcom. This change is likely to affect you, so here’s everything you need to know.

The acquisition was made in an innovative effort to modernise and build a strong, focused position to enable organisations to embrace secure cloud environments. 

Broadcom’s acquisition of VMware has brought together two engineering-first, innovation-centric teams with the aim of enabling organisations to embrace private, hybrid and multi-cloud environments. Committed to driving customer success, VMware by Broadcom has already announced a dramatic simplification of their product portfolio, allowing customers of all sizes to gain more value for their investments.

Following the path that VMware had embarked upon, Broadcom made the decision to discontinue perpetual licensing and support renewals with immediate effect. They will be transitioning all customers’ existing and future requirements onto new, easy to manage subscription-based licensing agreements.

Important information to note

Here’s some key points our solution specialists have highlighted for you when moving to a subscription-based licence:

• There will be four main subscription offerings:
  • VMware Cloud Foundation
  • vSphere Foundation
  • vSphere Standard
  • vSphere Essentials Plus
• The licence metric will move from per CPU to per Core with a minimum Core count threshold of 16 Cores per CPU. If your CPU has more than 16 Cores per processor, then you licence the greater number
• To continue using your software in a supported format, you’ll need to transition over to the new subscription-based licence

Frequently asked questions

Q: Why make the change from perpetual licences to subscription?

A: Subscription-based licensing is designed to make it easier for customers to consume VMware’s existing offerings and new innovations. VMware believe this new model will provide its customers with the flexibility and innovation they need to tackle their transformations.

Q: Can customers continue using their perpetual licences? 

A: To continue to run VMware in a supported format then you will need to migrate over to the new subscription-based license equivalent to your current perpetual license. 

Q: Can customers purchase and add perpetual licences after the change? 

A: Customers won’t be able to purchase new perpetual licences after the end of availability. Instead, customers can purchase subscription-based licences to replace their current perpetual licences.

Q: Can customers renew their Service and Support (SnS) contracts? 

A: No, customers won’t be able to renew SnS contracts for perpetual licensed products. Phoenix and VMware are working with their customers to guide them in moving from their perpetual licenses to the new subscription-based models.

Q: What can you do to prepare for the new subscription-based licences? 

Customers are able to book free VMware Licensing Health Checks with Phoenix in order to review your current licences and advise on upcoming changes.

Book your free VMware by Broadcom Licensing Health Check

To map out what this transition means for your organisation, please book one of our free VMware Licensing Health Check to help understand and manage the changes for your current and future VMware requirements.