VMware costs are soaring, and small and mid-sized businesses (SMBs) are feeling the pressure. Following Broadcom’s acquisition of VMware, a wave of licensing changes is forcing many longtime users to reevaluate their infrastructure strategy.
Costs are up, flexibility is down, and Broadcom’s new pricing model is locking small businesses into oversized, overpriced subscriptions. If your business depends on VMware for virtualization, now is the time to explore a more agile, cost-effective solution, like hyperconverged infrastructure (HCI).
HCI platforms such as Scale Computing offer a scalable, streamlined alternative that combines compute, storage, networking, and virtualization into one unified solution, without the overhead and restrictions of legacy systems.
A New Pricing Reality for VMware Users
In early 2025, Broadcom announced a dramatic increase to VMware licensing requirements: a 72-core minimum, up from just 16. For many SMBs, this means going from annual renewal costs of $2,000 to $10,000 or more, without even using all the licensed cores.
But that’s just the beginning. Broadcom’s new licensing model also includes:
- Subscription-only licensing: Say goodbye to perpetual licenses and hello to ongoing operational costs.
- Bundled offerings: Businesses now pay for features they may not need.
- Late renewal penalties: Miss your anniversary date? That’s a 20% fee. Some customers are even receiving cease and desist notices from Broadcom for not renewing on time.
These changes represent a seismic shift, one that leaves small businesses overpaying for bloated services while receiving less support.
Enter Hyperconvergence: A Smarter, Scalable Alternative
Now is the time to rethink your infrastructure. Hyperconverged infrastructure (HCI) solutions like Scale Computing offer a powerful alternative to VMware’s increasingly costly ecosystem.
What is HCI?
It combines compute, storage, networking, and virtualization into a single, software-defined solution. Instead of juggling multiple systems and vendors, HCI lets SMBs manage infrastructure through one centralized platform, with better resilience, scalability, and simplicity.
Why HCI Makes Sense Now
- Lower Total Cost of Ownership (TCO): No overbuying or wasted resources—just what you need.
- Simplified Management: Manage your entire IT environment from a single pane of glass.
- Scalability on Demand: Expand only as needed, without massive upfront costs.
- Built-in Resilience: Automated failover and high availability reduce downtime and headaches.
- Vendor Flexibility: Many HCI platforms are VMware-compatible without requiring you to stay locked into Broadcom’s terms.
Don’t Let Broadcom Decide Your Future
Broadcom’s changes to VMware licensing aren’t just a price increase—they’re a clear signal that small and mid-sized businesses are no longer a priority. Instead of adjusting to costly, enterprise-focused limitations, now is the time to shift to an IT solution that aligns with your actual needs and budget.
Break Free from VMware
Don’t be caught off guard, and don’t overpay. Get the tools you need at a price you can afford.
Book a free Virtualization Strategy Session with Info Advantage. Our team will assess your current VMware environment, identify cost-saving opportunities, and map out a right-sized transition plan that may include hyperconverged infrastructure (HCI) and cloud-first solutions.