Broadcom/VMware Advisory

Broadcom/VMware Renewal Survival Kit

Essential checklist for surviving Broadcom VMware renewal. Covers the new bundling model, per-core licensing, alternative hypervisors, and negotiation strategy. 35+ items.

35+
Action Items
6
Phases
2-10x
Reported Increases
Your Progress
0/36 (0%)
🚨
Immediate Assessment
6 items
0/6
▾
Document your current VMware spend (pre-Broadcom baseline)
Your pre-acquisition spend is the benchmark against which all increases should be measured.
Critical
Identify your VMware contract renewal date
Broadcom renewal timelines are aggressive. Know your date and start preparing immediately.
Critical
Map your complete VMware product portfolio
Document: vSphere, vSAN, NSX, vRealize/Aria, Horizon, Carbon Black, and any other VMware products.
Understand the new VCF/VVF bundle structure
Broadcom has consolidated VMware into VMware Cloud Foundation (VCF) and VMware vSphere Foundation (VVF). Most previous products are now bundled.
Important
Calculate the Broadcom proposed pricing vs your current spend
Quantify the exact increase. Market reports indicate 2-10x increases are common.
Engage independent Broadcom/VMware advisory
Broadcom negotiation requires market data from other renewals. Independent advisors bring this intelligence.
Critical
📊
Infrastructure Analysis
6 items
0/6
▾
Count total physical CPU cores across your VMware estate
Per-core licensing is the new model. Total core count directly determines your cost.
Critical
Map server specifications: cores per socket, sockets per server
High-core-count servers (64-128 cores) are disproportionately expensive under per-core licensing.
Analyse host utilisation rates across all clusters
Under-utilised hosts waste licences. Consolidation reduces licensable core count.
Important
Identify servers with high core counts and low VM density
These are the worst per-core economics. Prioritise for consolidation or alternative hypervisor migration.
Document VMware features actually in use per cluster
Not all clusters need vSAN, NSX, or vRealize. Map actual feature usage to identify bundle waste.
Calculate potential core reduction through consolidation
Model the cost impact of consolidating to fewer, better-utilised hosts.
Important
🔄
Alternative Evaluation
7 items
0/7
▾
Evaluate Nutanix AHV as a VMware alternative
Nutanix AHV is the most common VMware replacement. Evaluate for non-critical workloads first.
Important
Assess Microsoft Hyper-V for Windows-centric workloads
Hyper-V is included with Windows Server Datacenter. For Windows workloads, the incremental cost is zero.
Evaluate KVM/Proxmox for development and test environments
Open-source hypervisors are viable for non-production. Reduces the VMware footprint that needs licensing.
Assess cloud migration for eligible workloads
Moving workloads to AWS, Azure, or GCP removes them from VMware licensing entirely.
Important
Run POC on at least one alternative platform
A working proof-of-concept creates credible negotiation leverage with Broadcom.
Critical
Calculate TCO for each alternative over 5 years
Include: licensing, migration, training, operational changes, and risk. Compare against Broadcom renewal cost.
Build a phased migration roadmap
Even if not migrating everything, a credible phased plan creates leverage.
Tip
📜
Contract Terms Review
6 items
0/6
▾
Review perpetual licence rights vs subscription conversion
Broadcom is converting perpetual to subscription. Understand what rights you are giving up.
Critical
Challenge forced bundle adoption
If you only need vSphere, push back on being forced into VCF/VVF bundles with products you do not need.
Important
Review support terms for any degradation
Post-acquisition support levels may have changed. Verify SLAs and response times.
Negotiate multi-year pricing with caps
Lock pricing for 3+ years. Broadcom may increase pricing further in subsequent renewals.
Important
Require data export and migration assistance provisions
Ensure your contract includes provisions for data export and transition if you decide to leave.
Challenge any minimum commitment requirements
Broadcom may impose minimum spending thresholds. Push back if they exceed your actual needs.
🤝
Negotiation Strategy
6 items
0/6
▾
Present alternatives as credible, not hypothetical
Broadcom responds to real alternatives with POC evidence, not vague threats.
Critical
Use market data showing other organisations pricing outcomes
Broadcom has given better deals when customers demonstrate market awareness.
Important
Negotiate product-level pricing, not just bundle pricing
Understanding the cost of each component within VCF/VVF helps identify where to push back.
Align with other Broadcom VMware customers for collective leverage
Industry groups and peer networks sharing renewal data strengthen everyones position.
Tip
Escalate to Broadcom senior leadership if needed
Front-line sales may have limited authority. Request escalation for significant deals.
Consider a longer-term deal for better pricing
Broadcom may offer better rates for 5-year commitments. Weigh lock-in vs savings.
⏰
Execution & Protection
5 items
0/5
▾
Verify every product, core count, and price before signing
Broadcom contracts are new and evolving. Errors are common. Verify meticulously.
Critical
Document all verbal commitments in the written contract
Only contract language is enforceable. Verbal assurances from Broadcom sales have no value.
Critical
Plan the first 90 days post-renewal
Begin implementing alternatives for non-critical workloads immediately to reduce dependency.
Implement ongoing core count monitoring
Track physical core counts. Hardware changes affect licensing costs under per-core models.
Calendar the next renewal and maintain alternative readiness
Keep alternative evaluations current. The next renewal negotiation has already begun.
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