The real cost of VMware’s new licensing model
Broadcom’s $61 billion acquisition of VMware has shocked the IT world, especially after sweeping changes to VMware’s licensing model. One high-profile example is Kimley-Horn, a significant engineering consultancy that recently dropped VMware entirely in response to new costs and contract complexities.
Following the acquisition, Broadcom eliminated VMware’s perpetual licenses in favor of subscription-only models. This move has drastically increased costs for many businesses, with some reporting support expenses jumping over 400%. This shift feels more like a penalty than progress for IT teams used to predictability and flexibility.
Kimley-Horn’s internal teams had just 60 days to test and migrate to a new virtualization platform and successfully made the switch. Their story has become a wake-up call for organizations relying heavily on VMware for cloud and infrastructure needs.
Explore cost-effective VMware alternatives with Hystax
The new licensing policies also introduce a core-based pricing model with a minimum of 16 cores—regardless of actual usage. For many companies, especially mid-sized enterprises, this feels like overkill, forcing them to pay for resources they don’t need.
As IT leaders rethink cloud strategies, exploring VMware alternatives and modern virtualization solutions has become essential. Hystax offers a seamless path forward—with fully automated cloud migration, robust disaster recovery, and reliable backup solutions designed to help businesses reduce costs, increase flexibility, and regain infrastructure control. Whether moving to a public, private, or hybrid cloud, Hystax ensures Business Continuity with minimal downtime and zero data loss.
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Explore key reasons for migrating from VMware in our article: Migrating from VMware to modern platforms: The need, requirements, and considerations.
Summary
Broadcom’s changes to VMware’s licensing model have triggered a wave of enterprise exits due to rising costs and reduced flexibility. Companies like Kimley-Horn are already making the switch to alternative virtualization platforms. Hystax offers a seamless, cost-effective path forward with automated cloud migration, disaster recovery, and backup solutions.
Discover the best VMware alternatives in 2025, such as OpenStack, oVirt, KubeVirt, and public clouds. With Hystax’s expert insights, learn how to migrate easily.
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