When Broadcom acquired VMware in autumn 2023, IT professionals knew change was on the horizon. However, the latest licensing updates from Broadcom have sparked widespread confusion and frustration among VMware users. Effective April 10, 2025, Broadcom is raising VMware’s minimum core licensing requirements to 72 cores. That means if you plan to place a new VMware order after that date, the minimum order you can place will be 72 cores.
A licensing shift of this magnitude has—unsurprisingly—sent shock waves across the industry, especially for IT administrators, system administrators, and VMware users managing smaller deployments. They’re caught at the epicenter of this seismic wave. Once again, we want to help such customers who are trying to figure out their path ahead through the earthquake zone.
Here’s what you need to know about the licensing change and how to strategically respond—especially if you’re considering alternative cloud infrastructure solutions.
Why Does the Licensing Change Matter?
This new licensing minimum, confirmed in Broadcom’s communications with VMware distributors and partners [Note: 11:11 Systems is a Broadcom Pinnacle Partner], requires customers with smaller servers (for example, servers using single 8-core processors) to pay for 72 cores.
Broadcom also introduced new penalties for late license renewals. If you miss the renewal anniversary date, you could be hit with a 20% surcharge on your first-year subscription renewal fee. These changes seem to signal Broadcom’s intent to focus solely on larger enterprise customers, while encouraging smaller and mid-sized businesses (SMBs) to work with cloud providers like 11:11.
But organizations relying on VMware’s products like vSphere Foundation and vSphere Enterprise Plus—often used in small offices or edge deployments—may be questioning these additional costs and the feasibility of leveraging VMware as part of their long-term strategy.
What Does This Mean for VMware Customers?
The immediate impact of Broadcom’s latest change is a steep hike at a time when many businesses are looking to optimize costs. This is why SMBs—in particular—are actively looking for alternatives, even if they’ve been licensing VMware for years.
If your organization is looking to explore other options, deciding on alternatives or migrating workloads requires thoughtful planning to avoid unnecessary disruptions. Here are some strategic steps to consider:
- Evaluate Your IT Objectives
Review your current and future virtualization needs. Are the incremental costs of staying with VMware justified by its features, performance, and reliability? If not, consider whether another platform better aligns with your goals for scalability, cost-efficiency, and performance.
- Consider an Offramp with VMware-Compatible Cloud Solutions
For organizations already integrated with VMware that need a break from Broadcom’s pricing, transitioning to a VMware-compatible private cloud platform like 11:11 Systems could provide an opportunity to keep using familiar tools while optimizing costs.
11:11 Systems offers:
- Fully managed cloud migrations to streamline your operational shift.
- Flexibility for scaling workloads on infrastructure designed to accommodate modern IT challenges.
- Strategic cost savings, with a promotion that includes up to three free months and free migration services for new customers.
- Prioritize Strategic Planning
Whether staying with VMware or transitioning to alternatives, any infrastructure modification should be approached with a clear strategy. Consult industry experts or reputable cloud solution providers to minimize risks and maximize gains.
- Leverage Partnerships
Strategic partners like 11:11 Systems can guide organizations through tough decisions. From helping you weigh the pros and cons of sticking with VMware to handling full-scale migrations, experienced providers simplify the decision-making process.
How can 11:11 Systems Help? 
Broadcom’s licensing decisions may have left many VMware customers feeling frustrated—but it doesn’t have to be this way. At 11:11 Systems, we specialize in VMware-based solutions that empower IT teams to modernize, protect, and manage critical workloads through a more cost-effective, resilient cloud platform.
If your business faces VMware licensing renewal in the next few months, and you’re feeling backed into a corner, 11:11 is here to help. We can provide you with licensing, along with a pathway to migrate to 11:11 Hosted Private Cloud in the next six to 12 months. If you’re weighing your strategy for moving forward, it’s a good time to reach out to talk through your available options.
Here are some other reasons why organizations trust us to guide them in this transitional period:
- Deep Experience with VMware: Leverage decades of expertise in VMware technology with strategic guidance tailored to your needs.
- Secure Cloud Offerings: Achieve high security and resilience through our advanced platform.
- Promotional Value: Take advantage of our promotion, including free cloud migration and three complimentary months with a three-year plan.
Explore Your Options.
The recent changes in VMware licensing are an opportunity for businesses to rethink their infrastructure strategies and explore alternatives that align better with their operational needs. If you’re considering an offramp from VMware or exploring hybrid cloud solutions, 11:11 Systems can pave the way to a seamless transition.
Additional resources:
11:11 Private Cloud
Cloud Provisioning
Nine Keys to a Pain-free Cloud Migration
