VMware Announces Major Change in Licensing Model, Marking the End of Perpetual Licenses

In a significant move, VMware has announced that it will be discontinuing the sale of perpetual licenses for its software, marking a major shift in its licensing model. This change comes just 19 days after the official completion of Broadcom’s acquisition of VMware.

As of now, customers of VMware will no longer be able to purchase perpetual licenses, and existing customers with perpetual licenses will not be able to renew their support contracts. However, clients can continue to use their existing perpetual licenses with active support contracts, and VMware has committed to continuing support as defined in the existing contractual obligations.

This change affects all VMware products, including vSphere Standard and VMware vSphere Essentials Plus, which will still be available for small deployments and environments with limited requirements. To soften the transition, Broadcom is preparing measures to encourage businesses with perpetual licenses to switch to subscription-based offers with attractive pricing incentives.

Going forward, VMware will offer two main offers: VMware Cloud Foundation and VMware vSphere Foundation. These new licenses are the culmination of a two-year journey undertaken by VMware to simplify its portfolio and transition from a perpetual model to a subscription-based model to better serve customers with continuous innovation, faster time to profitability, and predictable investments.

According to VMware by Broadcom, this change is the natural evolution of the company’s licensing model, and it marks the beginning of a new era for VMware and its clients. The company believes that this shift will enable it to better serve its customers with a more flexible and cost-effective model that provides access to the latest technology and innovation.

In conclusion, the discontinuation of perpetual licenses by VMware represents a significant change in the company’s licensing model. This move is part of a larger effort by Broadcom to simplify VMware’s portfolio and transition to a subscription-based model. While it may be challenging for some customers to adapt to this new reality, the benefits of this shift are undeniable, and it marks the beginning of a new era for VMware and its clients.