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VMware Broadcom License Cost Estimator Site

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By Googling I found this site where you can find an estimator for VMware licensing cost. As you already noticed, VMware licensing has changed and many of the previous products which were accessible to buy online or via re-sellers, are now part of bundles. As a result, you no longer have the access to the individual rates of the products, such as vSphere Enteprise or Enterprise Plus etc. VCF and VVF Bundles are the only way you can purchase and consume VMware products – via subscription.

We have already wrote about the subject several times:

Quote from their site:

VMware is now increasing costs by a reported 3 to 10 times1, and these unexpected expenses will require leaders to address the impact on both their CapEx and OpEx.

Screenshot from https://www.riministreet.com/.

I cannot guarantee that their tool is right, but that's the only one I found around.

Things can also change over time and we can see the evolution of those rates, but according to the past 6 or more months revenues of VMware/Broadcom, they certainly do not face any revenue loss.

Broadcom's acquisition of VMware was completed in November 2023, and VMware's revenue is now reported as part of Broadcom's infrastructure software business unit, which also includes CA and Symantec's enterprise businesses. Broadcom does not break out VMware's revenue separately in its financial reports, making it challenging to isolate VMware's exact contribution.

However, based on available data, we can provide revenue figures for Broadcom’s infrastructure software segment for the relevant six-month period in fiscal year 2025 (covering November 2024 to April 2025, approximately Q1 and Q2 FY2025).

For the six-month period:

  • Q1 FY2025 (ended February 2, 2025): Broadcom’s infrastructure software business unit, which includes VMware, reported revenue of $6.7 billion, up from $4.55 billion in the same quarter the previous year.
  • Q2 FY2025 (ended May 4, 2025): The infrastructure software segment generated $6.6 billion in revenue, a 25% year-over-year increase.

The revenue growth is largely attributed to Broadcom’s strategy of transitioning VMware customers to subscription-based VMware Cloud Foundation (VCF) bundles, with 87% of VMware’s top 10,000 customers adopting VCF by Q2 FY2025. This shift, along with the discontinuation of perpetual licenses, has boosted recurring revenue but also led to customer dissatisfaction due to reported price increases.

Since Broadcom’s infrastructure software segment includes other businesses (CA and Symantec), which have not shown significant growth in recent years, the majority of the revenue increase is likely from VMware. However, precise VMware revenue cannot be confirmed without specific breakout data

Customer migrations away from VMware (e.g., to Nutanix) have been reported due to pricing concerns, but Broadcom’s financials suggest these have not significantly impacted revenue growth yet

VMware Alternatives

Proxmox – An open-source virtualization platform based on Debian Linux, supporting KVM (Kernel-based Virtual Machine) for full virtual machines and LXC (Linux Containers) for lightweight containerization. It offers a web-based management interface, high-availability clustering, live migration, and integrated backup tools. 

Hyper-V – A Type-1 hypervisor integrated into Windows Server, offering robust virtualization capabilities with seamless integration into the Microsoft ecosystem (e.g., Active Directory, Azure, Windows Admin Center).
Why Popular for SMBs: Cost-effective for organizations already using Windows Server, as it’s included in the license, reducing incremental costs. It’s familiar to Windows administrators and supports live migration, shielded VMs, and Azure Stack HCI for hybrid cloud setups.

XCP-NG – An open-source hypervisor based on XenServer (a fork of Citrix XenServer), built on CentOS with Open vSwitch for network virtualization. It provides enterprise-grade features without licensing costs. Fully open-source with no licensing fees, making it a budget-friendly option. It’s compatible with XenServer environments, supports Windows and Linux VMs, and scales from small to larger deployments.

Scale Computing HC3 – A hyperconverged infrastructure (HCI) solution that integrates virtualization, storage, and backup/disaster recovery into a single platform, using a proprietary hypervisor based on KVM. Simplifies IT management with a unified interface and automated systems, reducing the need for specialized expertise. Its predictable pricing and built-in high availability make it attractive for SMBs with limited IT staff.

Nutanix (for enterprises) – A Type-1 hypervisor integrated into Nutanix’s hyperconverged infrastructure (HCI) platform, combining virtualization, storage, and networking. It’s designed for enterprises modernizing data centers and supports VMs and cloud-native workloads. Nutanix AHV eliminates VMware ESXi licensing costs and simplifies management with a turnkey, cloud-like experience. It’s widely adopted in industries like healthcare, finance, and government for its scalability and ease of management across distributed sites.

Microsoft Hyper-V & Azure Stack HCI – Hyper-V, combined with Azure Stack HCI, provides a hyperconverged solution that integrates on-premises virtualization with Azure cloud services, offering a hybrid cloud framework for enterprises. Ideal for organizations invested in the Microsoft ecosystem, offering seamless integration with Azure, Active Directory, and Windows Server. It’s used by Fortune 500 companies and government agencies for its scalability and cloud connectivity.

So yea, there are TONS of alternatives, but the transition is a lot of work. So there must be a big electroshock (VMware pricing renewal -:) ) to make a decision for moving out of VMware. However, I would not expect the licensing costs to be any lower in the future.Whether you're future or current entrepreneur, you must calculate your IT costs.

Stay Tuned -:).

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This website is maintained by Vladan SEGET. Vladan is as an Independent consultant, professional blogger, vExpert x16, Veeam Vanguard x9, VCAP-DCA/DCD, ESX Virtualization site has started as a simple bookmarking site, but quickly found a large following of readers and subscribers.

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