From 160+ Products to Four Bundles
Broadcom's acquisition of VMware in late 2023 resulted in a radical simplification of VMware's product offerings. Over 160 individual VMware products and bundles have been consolidated into four main subscriptions: VMware Cloud Foundation (VCF), vSphere Foundation (VVF), vSphere Standard, and vSphere Enterprise Plus. This streamlined lineup folds formerly standalone products — including vSAN (software-defined storage), NSX (network virtualisation and security), and the Aria management suite (formerly vRealize) — into broader bundles. While the new bundles aim to reduce complexity and deliver a one-stop private cloud stack, they also limit flexibility. Some customers are forced to purchase features they may not need.
The era of à la carte purchasing is over.
Key Changes to the Product Model
Bundle-Only Model
Individual VMware product purchases are no longer possible. All capabilities are delivered through one of four subscription bundles. No mix-and-match, no standalone SKUs. The bundling strategy is designed to increase customer spending by forcing the purchase of components many organisations don't need.
Subscription-Only
Perpetual licences have been eliminated. All VMware software is now subscription-based. Existing perpetual licences receive no new updates and have uncertain long-term support status.
Per-Core Pricing
Licensing has shifted from per-socket to per-core with a minimum of 16 cores per CPU. This significantly increases costs for modern servers with high core counts. A server with 2 sockets at 32 cores per socket = 64 cores. You must license at least 64 cores minimum, possibly more.
Products Discontinued
vSphere Essentials Plus retired. Horizon divested to Omnissa. Aria only within bundles. Standalone vSAN and NSX purchases eliminated.
Inside the Bundles: What Each Package Includes
VMware Cloud Foundation (VCF)
The enterprise bundle. Includes vSphere, vSAN, NSX, Aria Operations, Aria Automation, Aria Suite Lifecycle. Designed for full private cloud deployments. Most expensive tier, minimum 16-core-per-CPU commitment. This is the bundle Broadcom prefers because it maximises revenue per customer.
vSphere Foundation (VVF)
Mid-market bundle. Includes vSphere, vSAN, vSphere Aria Operations. No NSX. Designed for organisations that want virtualisation with storage but do not need network virtualisation. More affordable than VCF but still forces the purchase of vSAN if you only need vSphere.
vSphere Standard
Entry-level hypervisor only. vSphere without vSAN, NSX, or Aria. Limited management capabilities. The cheapest option, but lacks the operational tooling many enterprises expect.
vSphere Enterprise Plus
Advanced hypervisor features without the full stack. Includes DRS, HA, Storage vMotion. Limited lifecycle. A middle-ground option for organisations that need vSphere+ but don't want full VCF.
What Has Been Discontinued
Many VMware products that enterprises relied on are no longer available as standalone purchases or have been eliminated entirely:
- VMware Horizon (VDI) — Divested to Omnissa — a separate company requiring a separate commercial relationship
- vSphere Essentials Plus — The SMB-oriented bundle — retired, effectively pricing out small and mid-size organisations
- Standalone NSX and vSAN purchases — No longer available. The only way to access these capabilities is through VCF or VVF
- The Aria suite (formerly vRealize Suite) — Only available as part of VCF — it cannot be purchased separately
- Standalone vSphere editions — Limited to Standard and Enterprise Plus; à la carte editions discontinued
Customers using individual Aria components must migrate to VCF or lose access. Those who relied on vSphere Essentials Plus pricing must jump to mid-market pricing (VVF). The pricing ladder has been simplified, but the gap between rungs has widened.
Strategic Recommendations
1. Conduct a Complete Audit of Your Current VMware Licences Before Your Renewal Date
Map each product you use to its equivalent (or substitute) in the new bundle structure. Do not assume your current licensing model maps neatly to one of the four new bundles. It likely does not. Document the gap.
2. Assess Whether VCF, VVF, or a Competitive Alternative Best Matches Your Requirements
Do not default to the bundle that Broadcom proposes. You are not obligated to accept their bundle recommendation. Our assessment tools can help you quantify which bundle (or alternative) minimises your three-year cost.
3. Model the Three-Year TCO for All Scenarios
Staying on VMware (at negotiated pricing), migrating to Nutanix AHV, migrating to Azure Stack HCI, or adopting a cloud-native architecture. Until you have modeled all four scenarios, you are making a decision in the dark.
4. Engage Independent Advisors with Post-Acquisition Broadcom Experience
Broadcom advisory services before entering any renewal negotiation. The commercial model has changed completely from the VMware era. The old playbook does not work.
The Impact on Small Customers
The new bundle structure has particularly hurt small and mid-size organisations. VMware Essentials Plus — a product specifically designed for SMBs — has been retired. Small organisations that previously licensed vSphere Essentials Plus (a 2-socket hypervisor with limited features) now face a choice: license vSphere Standard (subscription-based, higher cost), or jump to VVF (which forces vSAN purchasing). Many SMBs that could afford vSphere Essentials Plus cannot afford the alternatives, making migration to Nutanix, Hyper-V, or KVM increasingly attractive.
This is deliberate. Broadcom's strategy is to raise the price floor for VMware and harvest revenue from the enterprise segment, accepting that SMBs will migrate to alternatives. That is a viable business strategy, but it creates an opportunity for your organisations if you are currently SMB-priced.
See the VMware exit case study
Related Resources
- Broadcom VMware Licensing Changes Explained — The complete breakdown of perpetual-to-subscription shift and per-core pricing
- VMware and Legacy Suite Unbundling — How the suite collapse affects cost and negotiation
- Broadcom VMware Evaluation vs. Alternatives Advisory — Independent cost and risk analysis of all options
- Broadcom/VMware Assessment Tools — Free tools to quantify your exposure
- Broadcom/VMware Knowledge Hub — All resources in one place
- Broadcom Advisory Services — Custom negotiation and alternatives evaluation
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Download the VMware Negotiation Playbook
Let's Discuss Your VMware Portfolio
If you are trying to map your current VMware licensing to Broadcom's new bundles and want independent guidance, contact our Broadcom advisory team. We can help you understand which bundle (or alternative) minimises your cost and risk.