The Broadcom Effect
When Broadcom completed its acquisition of VMware, the ripple effects were immediate. License costs increased by 300% or more for many enterprise customers. Perpetual licenses disappeared. Support contracts were restructured. The message was clear: VMware is now a premium product at a premium price.
For IT leaders, the question isn't whether to evaluate alternatives — it's how quickly you can build a viable migration plan.
Understanding the New Licensing Model
Broadcom consolidated VMware's product lineup from over 100 SKUs into a handful of bundles. The most significant changes:
- Perpetual licenses eliminated — subscription-only model
- Per-socket licensing replaced with per-core pricing
- Mandatory bundling of products you may not need
- Support tiers restructured with higher minimum commitments
For a mid-size company running 10-20 hosts, annual costs can jump from $50,000 to $150,000-$200,000 overnight.
Your Options: A Practical Assessment
Option 1: Stay on VMware
Not all migrations make sense. If your environment is deeply integrated with VMware-specific features (NSX, vSAN, Horizon), the switching cost may exceed the licensing increase. Consider:
- Negotiate directly with Broadcom — volume discounts exist
- Audit your actual feature usage — you may qualify for a lighter bundle
- Plan a 2-3 year transition window rather than an emergency migration
Option 2: Nutanix AHV
Best for: Organizations wanting simplicity and strong enterprise support.
Nutanix eliminates the separate storage and SAN layer entirely. Management through Prism is significantly simpler than vCenter + vSAN + NSX. Migration tools are mature, and Nutanix actively targets VMware refugees.
I've personally led a full VMware-to-Nutanix migration for a banking institution. The operational cost reduction was significant, and the team needed less specialized training.
Option 3: Azure Stack HCI
Best for: Organizations already invested in the Microsoft ecosystem.
If you're running Active Directory, SQL Server, and Azure services, HCI offers tight integration. The licensing can be complex, but Microsoft is aggressively pricing against VMware.
Option 4: Proxmox VE
Best for: Cost-sensitive organizations with strong Linux expertise.
Proxmox is open-source with optional enterprise support starting at €110/year per socket. It's production-ready for many workloads but lacks the enterprise polish of VMware or Nutanix.
Building Your Migration Plan
A successful migration starts with an honest assessment:
- Audit current workloads — catalog every VM, its dependencies, and resource usage
- Identify migration complexity — simple lift-and-shift VMs vs. deeply integrated applications
- Calculate total cost of ownership — include not just licensing but training, migration effort, and operational changes
- Plan in phases — start with non-critical workloads, build confidence, then migrate production
The Bottom Line
The VMware licensing changes are painful, but they're also an opportunity to modernize. Many organizations were overdue for a platform reassessment. Whether you stay on VMware with optimized licensing, move to Nutanix, or explore other options, the key is making an informed decision rather than a reactive one.
Need help evaluating your options? I've guided multiple organizations through VMware migrations and can help you build a practical, risk-assessed migration plan.