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Support on perpetual VMware licenses can no longer be renewed. Is your next subscription quote sized to what you run?

VMware Licensing, Sized to What You Run

Broadcom sells VMware by subscription only, per physical core, mostly in two bundles: VCF and VVF. We count your cores, check which bundle you need and cost the alternatives before you renew.

16Cores licensed for every CPU, even one with fewer (Broadcom KB 313548)

Three hosts, two 12-core CPUs each
CountCores
Physical cores in the hosts72
Cores you license96
Cores you pay for that do not exist24

Each CPU counts as 16 cores: 3 × 2 × 16 = 96.

Why VMware renewals cost more

Why Your VMware Quote Went Up

Most of the increase comes from how VMware is now sold, not from how much you use it. Each of these is a place where the quote can be bigger than your estate needs:

Subscription onlySince 11 December 2023 VMware is sold only as subscriptions. Perpetual licenses keep working, but their support cannot be renewed, so updates now mean a subscription.

Bundles, not productsAbout 9,000 product SKUs and 160 bundles were folded into VCF and VVF. If you ran vSphere and little else, the quote may include NSX, vSAN and Aria that you will never deploy.

The 16-core floorEvery CPU is licensed as at least 16 cores. Hosts with 8 or 12-core processors pay for cores they do not have.

A minimum orderBroadcom announced a 72-core minimum order in April 2025. Reports on whether it stayed in force differ, so check the current terms with your reseller before you size a small estate.

vSAN bought twiceStorage capacity now comes with the cores: 1 TiB of vSAN for each VCF core and 0.25 TiB for each VVF core. A separate vSAN add-on can pay for capacity you already have.

The Oracle knock-onOracle counts every physical core of every host an Oracle VM can run on. A cluster redesigned for the VMware renewal can raise the Oracle bill by more than the VMware saving.

VMware licensing at a glance

How VMware Is Licensed Now

The rules that set the size of a renewal, from Broadcom’s own knowledge base and announcements.

RuleWhat applies
License typeSubscription only since 11 December 2023. Perpetual licenses keep working without support
MetricPer physical core
Minimum per CPU16 cores, even if the CPU has fewer (Broadcom KB 313548)
Minimum order72 cores, announced April 2025; verify current terms with your reseller
vSAN capacity included1 TiB per VCF core, 0.25 TiB per VVF core
Perpetual licenses without supportCritical security patches (CVSS 9.0 or higher) for vSphere 8.x only, no other updates (Broadcom KB 314603)

Which offer fits

OfferWhat it includesFits
VMware Cloud Foundation (VCF)The full private cloud stack: vSphere, vSAN, NSX and the Aria management suiteEstates that will deploy NSX and the full Aria suite
VMware vSphere Foundation (VVF)vSphere with Aria Operations and Aria Operations for Logs, plus vSAN capacityTraditional vSphere estates
vSphere StandardvSphere as a subscriptionSmall estates and basic consolidation
vSphere Essentials Plus KitA subscription kit kept for small estatesSmall sites

VMware announcement, updated 22 January 2024. The full list of products no longer sold on their own is on our Broadcom VMware licensing guide.

Worked examples

The Math Behind a VMware Renewal

These examples use Broadcom’s counting rules and, for Oracle, Oracle’s published list price. They show how the numbers move; they are not quotes.

1. The processor you buy sets the core count

Three hosts, two CPUs eachPhysical coresCores licensedCores that do not exist
8-core CPUs489648
12-core CPUs729624
16-core CPUs96960
24-core CPUs1441440

Cores licensed = hosts × CPUs × the larger of 16 and the cores per CPU.

Below 16 cores per CPU, a server refresh with smaller processors no longer lowers the VMware bill. The processor choice now changes the VMware bill as well as the hardware bill.

2. The vSAN capacity you already pay for

96 licensed cores onvSAN capacity included
VVF (0.25 TiB per core)24 TiB
VCF (1 TiB per core)96 TiB

Check this against what you store before buying a vSAN add-on.

3. One Oracle database on the cluster

One Oracle Database Enterprise Edition VM with 4 vCPUs runs on a three-host cluster with two 16-core Intel Xeon processors per host. Oracle counts the whole cluster: 96 cores × 0.5 core factor = 48 processor licenses. On a dedicated two-host cluster with two 8-core processors per host, the count is 32 cores × 0.5 = 16.

Oracle Database Enterprise Edition licenses at list price (US$47,500 per processor)
Dedicated clusterUS$760,000
Shared clusterUS$2,280,000

A gap of US$1,520,000 in licenses, before 22% a year in support

Oracle price list of 15 September 2026. The full rules are on our licensing Oracle on VMware page.

Stay, shrink or move

VMware Alternatives, Costed Before You Decide

There are three ways through a VMware renewal. Even if you stay, costing one alternative properly before you negotiate changes the conversation.

Renew, right-sizedChoose VVF or vSphere Standard where the VCF features will not be used, license the cores you will run, and count the vSAN capacity that comes with them.

Shrink the footprintFewer, denser hosts reduce core counts for both Broadcom and Microsoft licensing, but may raise failure-domain risk. At a hardware refresh, pick processors with the 16-core floor in mind.

Move some or all workloadsOrganizations compare Microsoft Hyper-V and Azure Local, Nutanix AHV, Red Hat OpenShift Virtualization, open-source KVM platforms such as Proxmox VE, and public cloud. Migration effort, tooling, skills and backup changes are part of the cost.

What changes when you leave VMware, and what does not

Cost to compareStay on VMwareMove to Hyper-V or Azure Local
Hypervisor and managementPer-core subscriptionIncluded with Windows Server, or the Azure Local per-core fee
Windows Server host and guestsWindows licenses for host cores and guestsSame licenses, with the Hyper-V role at no extra fee
SQL ServerUnchanged licensing rulesUnchanged licensing rules
Oracle DatabaseEvery core of every host the VM can run onThe same: Hyper-V is not an approved hard partition
Migration and operationsNoneMigration effort, tooling, skills and backup changes

Oracle accepts only the hard partitioning technologies on its list. Nutanix AHV is not on it either; Oracle Linux KVM with pinned cores is. See licensing Oracle on VMware.

For the Microsoft side of a move, see Windows Server licensing.

How we work

How Rythium Handles a VMware Renewal

Start at least six months before the renewal date, with your own core count and a costed alternative. The work runs in five steps.

  1. CountEvery host, CPU and core you will license, from your own inventory, not the quote
  2. FitMatch VCF, VVF or vSphere Standard to the features you deploy, and check the vSAN capacity
  3. ModelCost staying, shrinking and moving, including the effect on Microsoft and Oracle licensing
  4. NegotiateGo into the renewal with verified numbers and a costed alternative
  5. GovernKeep core counts current so the next renewal starts from your numbers

What you receive

Core countLicensed cores by host and cluster, with the 16-core floor applied.

Bundle fitWhich features you deploy, and whether VCF, VVF or vSphere Standard covers them.

Storage checkThe vSAN capacity that comes with your cores against what you store.

Cost modelStaying, shrinking and moving side by side, over the subscription term.

Cross-publisher impactWhat each option does to your Oracle and Microsoft licensing.

Renewal briefThe position, the numbers and the alternative to take into the negotiation.

Why choose Rythium?

Independent Advice on Every Publisher in the Stack

IndependentWe do not resell any publisher’s licenses or earn income from publishers. Our focus is our customers.

Every publisher on the hypervisorWe model VMware together with the Oracle and Microsoft licensing that runs on it, because a change in one moves the others.

Your numbers firstEvery renewal starts from your own core count, so the quote has to answer to it.

Who this is for

Frequently Asked Questions

Why did our VMware renewal cost go up?

Mostly because of how VMware is now sold. Subscriptions replaced perpetual licenses and support, most products are only available inside the VCF and VVF bundles, and every CPU is licensed as at least 16 cores. An estate that bought vSphere alone, on small processors, feels all three.

Should we choose VCF or VVF?

VCF is the full private cloud stack: vSphere, vSAN, NSX and the Aria management suite, with 1 TiB of vSAN per core. VVF suits traditional vSphere estates and includes Aria Operations and Aria Operations for Logs, with 0.25 TiB of vSAN per core. If NSX and the full Aria suite will not be deployed, compare VVF and vSphere Standard before signing.

How much does a VMware license cost?

VMware is sold as a per-core subscription, so the cost is your licensed core count times the per-core price of the bundle and term you buy. Every CPU counts as at least 16 cores, so the count is where savings start.

What is the minimum we have to license?

Sixteen cores for every CPU, even one with fewer. Broadcom also announced a 72-core minimum order in April 2025; reports on whether it stayed in force differ, so check the current terms with your reseller.

Can we keep running our perpetual VMware licenses?

Yes, they keep working. Without support you get no updates or technical support, apart from critical security patches for vSphere 8.x.

What are the alternatives to VMware?

Organizations compare Microsoft Hyper-V and Azure Local, Nutanix AHV, Red Hat OpenShift Virtualization, open-source KVM platforms such as Proxmox VE, and public cloud. We cost the one that fits your estate against a right-sized renewal.

Does leaving VMware fix our Oracle licensing?

Not by itself. Hyper-V and Nutanix AHV are not approved hard partitions either, so Oracle still counts every host a database VM can run on. Oracle Linux KVM with pinned cores is on Oracle’s approved list.

Do our Windows VMs need new licenses if we move to Hyper-V?

No. Windows guests need licenses on any hypervisor, and the same licenses cover them on Hyper-V. The saving from leaving VMware comes from the hypervisor line, not from the Microsoft guest licenses.

When should we start preparing for a VMware renewal?

At least six months ahead, with your own core count and a costed alternative.

Do you sell VMware licenses?

No. Rythium is independent and does not resell publisher licenses or earn income from publishers.

How do you charge?

We charge a fixed fee for the assessment, a success-based fee or a hybrid, case by case, depending on the scope and the deliverables you need. Contact us for a scoped quote and tell us your preference.

VMware renewal review

Get Your VMware Renewal Reviewed

Tell us about your hosts and your renewal date. We will show you what you must license, which bundle fits and what the alternatives cost.

Sheshagiri Anegondi
Sheshagiri AnegondiManaging Partner, Rythium. Former Vice-President, Oracle Corporation.
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