VMware perpetual licenses on the chopping block following Broadcom acquisition

The VMware logo pictured at Mobile World Congress in March 2023
(Image credit: Getty Images)

Broadcom has announced plans to stop VMware perpetual licenses as part of a series of changes to the firm’s product range in the wake of its recent acquisition.

Perpetual license contracts will be shuttered in a move which Broadcom said forms part of a “simplification” of the VMware product portfolio that aims to enable customers to “gain more value for their investments”.

Broadcom said efforts to shake up its portfolio is based on customer complaints that its offers and go-to-market are “too complex”.

Broadcom will instead usher customers toward a subscription model in alignment with broader industry standards. This means product offerings will now be solely available as subscriptions, or as term licenses and Support and Subscription (SnS) renewals.

In pursuing a subscription model, the firm said it will deliver a range of benefits to customers, including “continuous innovation”, “faster time to value”, and more predictable investments.

Broadcom did provide clarification for customers operating under a perpetual license agreement, however.

Raghu Raghuram, CEO at VMware by Broadcom, stood on stage at VMware Explore Barcelona 2023. Behind him, the old VMware logo and the Broadcom logo are displayed on a massive keynote screen.

(Image credit: VMware Global Communications)

VMware’s vision solidifies with Broadcom’s reassurance

The tech giant said it will continue to provide support “as defined in contractual commitments”, but advised customers to “review their inventory” to establish renewal and expiration dates.

“Broadcom will work with customers to help them ‘trade in’ their perpetual products in exchange for the new subscription products, with upgrade pricing incentives,” the firm added.

VMware perpetual licenses aren’t the only changes afoot

Changes to VMware perpetual licenses aren’t the only amendments announced by Broadcom this week. The firm will also overhaul its VMware Cloud Foundation and VMware vSphere Foundation portfolio. 

The first of these changes includes a subscription price reduction for VMware Cloud Foundation. The company will cut the subscription list price “by half” and aims to provide “higher support service levels”.

This includes enhanced support for solution activation, as well as improved lifecycle management services.

The new VMware vSphere Foundation will also offer customers a “more simplified” workload platform aimed specifically at small-to-medium sized businesses, Broadcom said.


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Changes to the offering will include integration of vSphere with the firm’s intelligent operations management system to provide streamlined performance and availability, as well as improved efficiency.

Both of these offerings will also include optional advanced add-ons. This includes integration with its storage offering, ransomware and disaster recovery service, and application platform services.

An add-on for its Private AI service will be made available soon.

Ross Kelly
News and Analysis Editor

Ross Kelly is ITPro's News & Analysis Editor, responsible for leading the brand's news output and in-depth reporting on the latest stories from across the business technology landscape. Ross was previously a Staff Writer, during which time he developed a keen interest in cyber security, business leadership, and emerging technologies.

He graduated from Edinburgh Napier University in 2016 with a BA (Hons) in Journalism, and joined ITPro in 2022 after four years working in technology conference research.

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