VMware’s New Licensing Policy Sparks Frustration Among Businesses and IT Administrators

The recent restructuring of VMware’s licensing, following the acquisition by Broadcom, has caused significant unrest among companies, system administrators, and service providers. Starting in April, VMware by Broadcom will require a minimum purchase of 72 cores for renewals and new licenses, a measure that particularly affects small and medium-sized enterprises that have traditionally relied on more flexible and tailored licensing.

This change means that any company wishing to renew its contract must adjust to this minimum, even if their previous contract was below that number. Furthermore, for new acquisitions, it will not be possible to purchase fewer than 72 cores, except in very specific cases such as extensions on existing subscriptions of fewer than 72 cores. This policy also includes a 20% penalty for those renewals that are not managed within the established timeframe.

Small Clients, the Big Losers

The tightening of conditions has been interpreted by many as a strategy to gradually move away from working with smaller clients, prioritizing only large corporations. For SMEs, educational institutions, and organizations managing tight infrastructures, these changes represent unaffordable costs and the necessity to seek alternatives.

David Carrero, co-founder of Stackscale (Aire Group), a European company specialized in cloud infrastructure, has been blunt: “VMware has decided to stop working with the small ones, limiting their choices and suffocating budgets that cannot withstand such conditions. At Stackscale, we advocate for solutions like Proxmox, a real, flexible, and powerful alternative for clients who want independence and freedom to manage their infrastructure.”.

Proxmox: The Alternative Gaining Ground

In a context where technological sovereignty and scalability are key, platforms like Proxmox are positioning themselves as a solid and increasingly in-demand solution. “At Stackscale, we see how many of our partners and clients are making the switch to Proxmox to avoid restrictive policies. It not only offers the necessary virtualization capacity but also allows for transparent management, without surprises or unilateral changes,” adds Carrero.

A Forced Paradigm Shift

The tech sector is experiencing a moment of accelerated transformation. VMware by Broadcom’s decision to impose this new model has opened the door to a change in organizational mindset, leading them to start questioning their reliance on vendors that do not respect the flexibility required by the market.

The affected organizations now face two options: bear the imposed costs and limitations or invest in open-source platforms and solutions more suited to their realities. The financial pressure from the 20% surcharge on late renewals only exacerbates the discontent, forcing greater planning ahead to avoid unnecessary surcharges.

Conclusion: The Opportunity for Open Alternatives

While this licensing policy may provide short-term financial benefits for Broadcom, industry experts warn it could mark the beginning of VMware’s decline in environments where flexibility and cost optimization are essential.

In the words of David Carrero: “This is the time for companies to evaluate alternatives. Proxmox, along with open cloud solutions like OpenStack or OpenNebula, allow for maintaining control, without impositions, and with a model that grows as the business grows.”

The market seems determined: in the face of inflexible policies and onerous conditions, technological freedom and transparency are becoming the new standard.