You may have seen in the press that Tesco is taking Broadcom to court over VMware licensing, saying it was asked to pay 237% more for licences it considers unnecessary. But it’s not just the giant businesses being impacted, closer to home, we’ve seen some of our customers seeing their VMware licencing costs increase five to ten fold, thanks to price increases and licence model changes. What impact could these changes have on your VMware licencing? The worst time to find out is the month before your renewal is due. If you have a renewal due in the next 12 months, it’s a good time to familiarise yourself with what has changed and how it could impact you. This short guide can help. 

What Changed 

• Subscriptions only. Perpetual licences have gone. 

• Bundled products. You may now pay for components you never used. 

• Higher minimums and longer terms. Smaller environments can end up licensing more than they run, on multi-year commitments. 

• Late renewal surcharge. A 20% increase on the first year has been reported for late renewals. 

The impact varies a lot depending on your previous deal, the size of your estate and the products you use. Some businesses see a modest rise. Others see a very large one. 

Renew, Renegotiate or Migrate 

All three options are legitimate, and staying on VMware can still be the right answer once the numbers are on the table. 

Renew if the cost works and the platform fits. 

Renegotiate if you understand your real requirements and can show credible alternatives. It often changes the conversation. 

Migrate if costs no longer stack up. It takes planning, but with enough runway it’s a managed project, not a scramble. 

What to Work Out First 

1. Your exact renewal date, including any short-term bridging agreements. 

1. Your true capacity, meaning what you run today versus what the quote asks you to licence. 

1. Your workloads, and how easy each would be to move. 

1. Your three to five year cost, including migration effort, support and downtime risk. 

Why Timing Matters 

A renewal with six months of runway is a decision. A renewal with six weeks is a negotiation you’re likely to lose. Moving platforms takes time to plan and test, so if the clock is already running down, many businesses renew as-is just to buy time. 

The Bottom Line 

 You don’t need to panic or rip anything out. You do need to know where you stand before your next renewal.. 

As an independent IT partner, we’ll help you understand your options, costs and what makes sense for your business. 

Book a call with our team to discuss your VMware renewal.