Broadcom moved VMware to per core subscription only in early 2024. The 16 core minimum, the VCF and VVF bundle math, the vCPU versus physical core trap, and the buyer side framework procurement teams use to model VMware cost on a 2026 renewal.
Broadcom replaced the VMware perpetual plus support model with subscription only per core licensing in early 2024. The bundle structure compressed 168 SKUs into two primary editions, VMware Cloud Foundation and VMware vSphere Foundation, plus several add ons.
The math is unforgiving. The 16 core minimum per CPU bites smaller hosts. The bundle composition forces customers to license capabilities they may not use.
This article gives the calculation framework. Pair it with the Hyper V vs VMware comparison, the Broadcom hub, the VMware alternatives guide, and the licensing changes explained.
Broadcom completed the VMware acquisition in November 2023. The product line restructure followed in February 2024. The reset moved VMware from perpetual plus support to subscription only and from a la carte products to bundles.
The two primary bundles target different parts of the VMware estate. VCF is the full stack for tier one production. VVF is the right size for tier two and edge.
| Component | VCF | VVF |
|---|---|---|
| vSphere Enterprise Plus | Included | Included |
| vSAN | Unlimited TiB per core | 1 TiB per core, capped 100 TiB per cluster |
| NSX networking | Included | Not included |
| Aria management | Included | Not included |
| Tanzu Kubernetes | Included | Not included |
| HCX migration | Included | Not included |
| List per core per year | 350 dollars typical | 135 dollars typical |
VVF includes vSAN but caps the consumption at 1 TiB per core and 100 TiB per cluster. A vSAN heavy workload above that cap requires VCF or a vSAN add on. The buyer side audit identifies which clusters need VCF and which can stay on VVF.
Every CPU in a VMware licensed host carries a 16 core minimum. A 12 core CPU is licensed at 16 cores. A 24 core CPU is licensed at 24 cores. The math compounds across hosts and clusters.
| CPU type | Physical cores | Licensed cores | Notes |
|---|---|---|---|
| 8 core CPU | 8 | 16 | Minimum bites |
| 12 core CPU | 12 | 16 | Minimum bites |
| 16 core CPU | 16 | 16 | At minimum |
| 24 core CPU | 24 | 24 | Above minimum |
| 32 core CPU | 32 | 32 | Above minimum |
| 2 socket 12 core host | 24 | 32 | 16 per CPU |
| 2 socket 16 core host | 32 | 32 | At minimum |
| 2 socket 32 core host | 64 | 64 | Above minimum |
VMware licensing runs on physical cores. The vCPU count exposed to guests is a virtualization construct, not a license unit. Quotes that price by vCPU are misleading.
The three examples below walk the math on common deployment shapes. Each example uses VCF list at 350 dollars per core per year and VVF list at 135 dollars per core per year.
Three node cluster. Each node has two 12 core CPUs. Total physical cores 72. Licensed cores 96 due to 16 core minimum. VCF list 33,600 per year. VVF list 12,960 per year.
Eight node cluster. Each node has two 16 core CPUs. Total physical cores 256. Licensed cores 256 at minimum. VCF list 89,600 per year. VVF list 34,560 per year.
Twenty node cluster. Each node has two 32 core CPUs. Total physical cores 1,280. Licensed cores 1,280 above minimum. VCF list 448,000 per year. VVF list 172,800 per year.
The per core model has predictable failure modes. Each pitfall has a buyer side control.
| Pitfall | Buyer side control |
|---|---|
| Quote priced on vCPU not physical core | Reject quote, request physical core based pricing |
| Bundle wide VCF when VVF fits | Tier the estate, VVF on tier two workloads |
| 16 core minimum on small hosts | Consolidate workloads onto larger hosts before renewal |
| Pinnacle reseller monopoly | Source two parallel Pinnacle quotes |
| Annual renewal with no term commitment | Three year term unlocks deeper discount band |
| NSX or Aria included but unused | Audit feature usage, drop to VVF where unused |
The eight step checklist below runs the per core sizing. The work fits inside a 60 day pre renewal window.
Every CPU in a VMware licensed host carries a 16 core minimum. A 12 core CPU is licensed at 16 cores. A 24 core CPU is licensed at 24 cores. The minimum is per CPU, not per host. A 2 socket host with two 12 core CPUs is licensed at 32 cores.
VCF is the full stack including vSphere, vSAN unlimited, NSX, Aria, Tanzu, and HCX. VVF includes vSphere and vSAN capped at 1 TiB per core and 100 TiB per cluster. VCF runs roughly 350 dollars per core per year at list. VVF runs roughly 135 at list. The right bundle depends on whether NSX, Aria, and Tanzu are in scope.
Per physical core. VMware licensing runs on physical cores. The vCPU count exposed to guests is a virtualization construct, not a license unit. Quotes that price by vCPU are misleading. Reject any quote that prices vCPU and request physical core based pricing.
Existing customers face 50 to 200 percent uplift on renewal. The driver is the bundle move plus the subscription only model plus the 16 core minimum. The buyer side controls are tier mapping, host consolidation, parallel Pinnacle quotes, term commitment, and credible alternative leverage.
Yes. Three year term unlocks the deeper discount band. Parallel Pinnacle quotes create competitive tension. Credible alternative quotes from Hyper V, Nutanix, or open source set the target price. Typical discount lands 20 to 45 percent off list with the right buyer side process.
VVF is the right bundle. The customer pays the lower per core rate and accepts the vSAN cap at 1 TiB per core. Workloads above the cap need VCF or a vSAN add on. The tier mapping exercise identifies which clusters can stay on VVF and which need VCF.
Redress runs the VMware estate audit, the bundle right sizing, and the parallel Pinnacle quote process on the buyer side. The deliverable is a defended VMware position, a defended bundle composition, and a defended renewal price across the term.
Read the related Vendor Shield, the Renewal Program, the Benchmark Program, the Software Spend Assessment, the Benchmarking framework, the about us page, the management team page, the locations page, and the contact page.
A buyer side framework for the next Broadcom VMware quote, renewal, or migration. Per core benchmarks, VCF and VVF sizing tables, alternative platform comparison logic, and the quote analyzer used on every engagement.
Used across five hundred plus enterprise software engagements. Independent. Buyer side. Built for enterprise customers running VMware at scale against the Broadcom commercial model.
Open the white paper in your browser. Corporate email only.
Open the Paper →We applied the 16 core minimum across 47 hosts, tiered the workloads to VCF and VVF, consolidated 12 small hosts onto larger blades, sourced two parallel Pinnacle quotes, and used the credible Hyper V alternative to land the VMware renewal at 38 percent below the original Broadcom ask.
We have run 500+ enterprise clients across 11 publishers. Every engagement starts with one conversation.
VCF and VVF pricing movements, 16 core minimum mechanics, Pinnacle channel behavior, and Broadcom commercial behavior across every renewal cycle.
Once a month. Audit patterns, renewal benchmarks, vendor commercial signals across Oracle, Microsoft, SAP, Salesforce, IBM, Broadcom, AWS, Google Cloud, ServiceNow, Workday, Cisco, and the GenAI vendors. No follow up sales pressure.
Free providers (Gmail, Yahoo, Outlook) cannot subscribe. Work email only. Unsubscribe in one click.
