Virtualization is now a strategic pillar of enterprise IT infrastructures, as it enables operational agility, resilience, and effective resource control. In this context, VMware has historically been the industry benchmark: a solid, reliable platform with a mature and widely integrated ecosystem.
However, with Broadcom’s acquisition of VMware in 2023, the landscape has changed. This is not merely a standard product evolution: the new licensing model is concretely reshaping renewal strategies, scalability plans, and the long-term economic sustainability of virtualized infrastructures.
The New Broadcom–VMware Model: What Is Really Changing
The transition to Broadcom has marked a clear break from the past, particularly in terms of commercial and contractual models:
End of perpetual licenses, subscription-only: the traditional perpetual licensing model has been replaced by an exclusively subscription-based approach.
More standardization, less flexibility: the new licensing framework introduces stricter rules, including:
- Minimum purchase and renewal thresholds set at 72 cores.
- BMandatory bundles that limit the ability to purchase only what is actually needed.
- Penalties for late renewals, introducing additional financial risk for organizations.
These approaches support a large-scale simplification strategy, but they may prove poorly aligned with the realities of mid-sized environments, distributed sites, or SMB contexts, where flexibility and modularity are essential.
Increasingly unpredictable renewals: widely adopted editions such as VMware vSphere Standard 8 are no longer available as new SKUs. At renewal time, many organizations are being steered toward higher-tier bundles—such as vSphere Foundation—resulting in a significant cost impact compared to previous configurations.
Rising costs: finally, a significant increase in Broadcom’s price lists further compounds the issue, with additional hikes expected in 2026. This trend makes renewal and expansion costs less predictable, particularly for infrastructures with a limited number of cores.
Looking Beyond: HPE VM Essentials with Morpheus
In a context where licensing is becoming increasingly decisive, evaluating alternatives is not merely a cost-driven choice, but a strategic decision.
HPE VM Essentials, built on the Morpheus platform, positions itself as a modern solution for virtualization and infrastructure management, capable of bringing together in a single platform:
- Virtual machine management
- Advanced orchestration and automation
- Governance and cost control
Key Benefits of HPE VM Essentials
Cost control: the licensing model is aligned with actual infrastructure capacity, with no imposed minimum thresholds. This enables clearer, more sustainable, and more predictable long-term planning.
Native automation and centralized management: provisioning, orchestration, and policy management are natively integrated, reducing operational complexity and freeing up valuable time for IT teams to focus on higher-value activities.
Designed for hybrid cloud: HPE VM Essentials is built for on-premises environments and hybrid scenarios, adapting to continuously evolving infrastructures without rigid platform constraints.
Why Consider It Today
In light of recent changes to VMware’s licensing model, HPE VM Essentials with Morpheus represents a concrete option for organizations looking to:
- Reduce the risk of rising costs and contractual complexity associated with mandatory bundles and core-based thresholds.
- Adopt a modern, scalable, and automation-driven platform.
- Benefit from more transparent entry and renewal costs, based on actual infrastructure needs rather than standardized models.
In Summary:
- VMware under Broadcom remains a robust and well-established platform, still central to many enterprise environments.
- However, the new licensing model introduces additional complexity and a significant cost impact, particularly for mid-sized and smaller organizations.
- HPE VM Essentials with Morpheus positions itself as a credible and modern alternative, delivering operational simplicity, automation, and greater cost control.
Evaluating available options today means protecting IT investments, increasing infrastructure resilience, and building a more sustainable model for the future.