VMware Licensing and Hosting Shake-Up: What It Means for Your Business
- Stan Yarbrough, Ph.D.
- Sep 30
- 2 min read
Broadcom’s acquisition of VMware has triggered a seismic shift in the virtualization landscape—and if your infrastructure relies on VMware, you need to act fast.
What Changed?
Broadcom has overhauled VMware’s licensing and hosting model:
Greater than 70% of VMware licensing is now subscription-based
Only 14 Cloud Service Providers (CSPs) are authorized to sell VMware licensing and host VMware workloads
Licensing is now “Bring Your Own License” (BYOL) or via approved CSP
You must own the license before hosting on your own equipment
You must select a CSP that is authorized to license hardware for VMware
If you're using a provider outside the approved list, you’ll need to migrate to a supported CSP or switch platforms entirely.
What this means for you
If your VMware environment is hosted by a delisted provider, you’re facing a critical decision point. Broadcom’s new rules mean:
No new VMware orders after October 2025
Bridge licensing is not an option unless you own the hardware
Exceptions are unlikely—Broadcom may even shrink the approved list further
Public Cloud migration isn’t a silver bullet—it’s often more expensive and less flexible for disaster recovery
We can help you navigate this shift with minimal disruption and maximum value.
Key Questions
To assess your risk and readiness, consider:
Who currently hosts your VMware environment?
Are they on Broadcom’s approved list?
What VMware products do you use?
What’s your current licensing model?
When are your renewals due?
Do you have time to migrate?
What’s your contingency plan?
Considerations:
Time is tight - large migrations require planning and execution now
Misinformation is rampant—some “loopholes” are simply false
Frustration is growing—Broadcom’s changes have caught many off-guard
How Opex Can Help
We’re here to guide you through this transition by connecting you with the right provider for:
Strategic migration planning
Licensing assessments
CSP selection and onboarding
Budget-conscious migration options
Project funding opportunities