Contents
Key takeawaysHow cost per core is calculatedA worked exampleVCF versus vSphere FoundationThe vSAN entitlementChecking your own core countWhat we saw in 2024 and 2025Controlling the renewalWhat to do nextFAQBroadcom prices VMware Cloud Foundation per physical core, with a 16 core minimum per processor, so what you pay depends on your host hardware as much as on the subscription rate.
- Per core, 16 core floor. VCF licenses every physical core with a 16 core minimum per CPU, so small sockets pay for cores they do not have.
- Subscription only. Broadcom retired perpetual licenses, so VCF is now an annual or multi year subscription.
- Bundle economics. VCF bundles vSphere, vSAN, NSX and Aria, which helps if you run them and costs you if you do not.
- vSAN capacity. Each licensed core carries 1 TiB of vSAN, and raw capacity above that is a separate charge that shrinks as you cut cores.
- Core density matters. Consolidating onto fewer, denser hosts lowers the total core count and with it the total cost.
- Renewal shock. Moving from perpetual licenses to VCF subscription commonly tripled annual cost, which makes the first renewal a negotiation.
How is VMware Cloud Foundation cost per core calculated?
Broadcom charges VCF on every physical core in each ESXi host, with a minimum of 16 cores charged per CPU even if the chip has fewer. Your annual cost is the per core subscription rate multiplied by total licensed cores. Broadcom sets out the model on the VMware Cloud Foundation page.
The headline rate matters less than most buyers expect. Two companies paying the same rate per core can see very different invoices, because the core count is set by hardware choices made years before the renewal. A 12 core CPU still bills as 16, so low density sockets carry overhead that never shows up on a price list.
| Host config | Physical cores | Licensed cores | Note |
|---|---|---|---|
| 2 CPU, 12 core each | 24 | 32 | 16 core floor applies |
| 2 CPU, 16 core each | 32 | 32 | No floor penalty |
| 2 CPU, 32 core each | 64 | 64 | Best density efficiency |
Why does the 16 core minimum matter?
On any CPU below 16 cores you pay for cores you do not physically have. In the first row above, 8 of the 32 licensed cores exist only on the order form. Environments running older, lower density chips carry that overhead on every host until they refresh hardware.
Does disabling cores in the BIOS lower the count?
No. Broadcom's VCF program terms define a core as a physical computational unit of the processor and require every core to be licensed, including cores deactivated by the BIOS. Broadcom's own counting script also warns that disabled cores make its results inaccurate. The only ways to reduce the count are fewer hosts, fewer sockets or a different CPU choice.
How does the floor hit small and large environments differently?
- Branch and edge sites. A three host cluster with one 8 core CPU per host runs 24 physical cores and licenses 48. The floor doubles the bill on hardware like this.
- Mid sized data centers. Mixed hardware generations are the norm, so the floor lands on the older clusters. Those clusters are where a hardware refresh cuts the license count fastest.
- Large, recently refreshed environments. With 24 or 32 core CPUs everywhere, the floor barely registers. The cost questions shift to bundle fit, vSAN capacity and the renewal terms.
The VMware Estate After the Repackaging
What does a VCF quote look like for a mixed cluster environment?
A VCF quote is your host list multiplied out, with each CPU counted at 16 cores or its real count if higher, then priced at the per core rate.
Say you run 26 hosts across three clusters, at an illustrative rate of $300 per core per year. Broadcom does not publish a rate card, so the rate is for the arithmetic only. Our VCF pricing brief covers the ranges we see.
| Cluster | Hosts and CPUs | Physical cores | Licensed cores | Annual cost at $300 |
|---|---|---|---|---|
| Cluster A, general | 10 hosts, 2 x 12 cores | 240 | 320 | $96,000 |
| Cluster B, production | 12 hosts, 2 x 24 cores | 576 | 576 | $172,800 |
| Cluster C, legacy apps | 4 hosts, 2 x 8 cores | 64 | 128 | $38,400 |
| Total | 26 hosts | 880 | 1,024 | $307,200 |
The floor adds 144 cores, about 16 percent above the physical count, and costs $43,200 a year at this rate. Cluster C is the worst case, with 64 real cores billed as 128. If the company paid $100,000 a year in support before the switch, this first quote is about 3.1 times its old run rate.
What does consolidation do to the same quote?
Suppose clusters A and C shift onto 5 new hosts with two 32 core CPUs each, and a capacity review shows 2 production hosts in cluster B are idle and can be retired. The result looks like this:
- New cluster A and C. 5 hosts x 64 cores = 320 licensed cores, replacing 448.
- Cluster B. 10 hosts x 48 cores = 480 licensed cores, replacing 576.
- Total. 800 licensed cores instead of 1,024, a cut of 224 cores, or about 22 percent.
- Cost. $240,000 a year instead of $307,200, which is $67,200 a year and $201,600 over a three year term.
The new hosts also give cluster A and C workloads 320 physical cores where they had 304. Consolidation here buys capacity and cuts the bill at the same time, which is why the hardware plan belongs in the renewal conversation. Our per core subscription calculator runs the same arithmetic on your own host list.
Broadcom VMware Negotiation Guide
How VCF is counted and priced per core, and the terms buyers use to hold the renewal down. Free to read.
Get the white paper →Is the VCF bundle worth it versus vSphere Foundation?
VCF is worth the price only if you run the components it bundles. It packages vSphere, vSAN, NSX and Aria (renamed VCF Operations and VCF Automation in version 9) into one per core subscription. Broadcom positions VCF as the strategic SKU on its VMware Cloud Foundation product page.
- Worth it when: you actually run vSAN and NSX across most of your clusters, and you use the automation and operations tools.
- Overpriced when: you only need compute virtualization.
- Check VVF: VMware vSphere Foundation is the lighter SKU for compute only needs, with a smaller vSAN allowance of 0.25 TiB per core.
Map which bundled components you use. Paying for NSX and Aria you never deploy is the most common VCF overspend we see. Our VCF and vSphere Foundation comparison sets out the component split in detail.
How do you test bundle fit cluster by cluster?
Write down what each cluster runs today. A cluster with no NSX Manager registered, no vSAN datastore and no automation workflows is a candidate for VVF. Ask Broadcom to quote those clusters on vSphere Foundation as separate lines, and get in writing how a later upgrade to VCF would be credited.
The VCF and VVF comparison calculator shows the price gap at your core count.
How does the VCF vSAN entitlement change the cost?
Each VCF core includes 1 TiB of vSAN capacity, and storage above that allowance is bought separately as add on capacity. Broadcom's counting guidance measures the need against total raw vSAN capacity, so the add on you need is raw capacity minus entitled TiBs. Broadcom explains entitlement changes on its VCF licensing blog.
- Calculate your included vSAN capacity from total licensed cores.
- Compare it against your raw storage footprint, measured before RAID and deduplication overhead.
- Negotiate add on capacity, and its price per TiB, before you exceed the allowance.
If your storage need outpaces the included entitlement, the overage charge can rival the core subscription. Model it before you sign.
Why can cutting cores shrink your vSAN allowance?
The vSAN allowance follows the core count, so every core you remove also removes 1 TiB of included storage. In the example above, 1,024 cores carry 1,024 TiB and the consolidated 800 carry 800 TiB.
With 900 TiB of raw vSAN capacity, the company goes from covered to 100 TiB short. Price that add on into the saving before approving the host plan.
How do you check your own core count before Broadcom does?
Count from your own vCenter data, host by host, before the first quote arrives. Broadcom's first quote may be built from its own install base records, which can include retired hosts and miss hardware changes.
- Broadcom's counting script. Knowledge base article 313548 provides the FoundationCoreAndTiBUsage.psm1 PowerCLI module. It needs PowerCLI 13.3 or later and PowerShell 7.4.6 or later, and reports licensed cores and vSAN TiBs per host, with the floor applied.
- RVTools. The vHost tab lists sockets and cores per CPU for every host, which makes it easy to spot sockets below 16 cores.
- vCenter hardware summary. Useful to confirm individual hosts and to find powered off or disconnected hosts still registered.
- vSAN capacity view. Shows raw capacity per cluster, the number the entitlement is measured against.
- NSX Manager and VCF Operations. Show whether the bundled components are deployed at all, which feeds the VCF versus VVF decision.
Keep the output. VCF terms also require a compliance report 180 days after the license is registered and every 180 days after that, so the count you build now becomes the baseline Broadcom will compare against.
What have we seen in VCF renewals in 2024 and 2025?
Across roughly 30 to 40 Broadcom VMware environments that Fredrik Filipsson benchmarked between 2024 and 2025, the per core model reshaped cost more than the price per core itself. The same three patterns came up again and again:
- First renewal. Subscription cost ran 2 to 3.5 times the prior perpetual plus support spend.
- The floor. The 16 core per CPU minimum added 10 to 25 percent on hosts with low core counts.
- Consolidation. Companies that moved onto denser hosts cut licensed cores by 15 to 30 percent.
Why we disagree that the first VCF quote is simply the new normal
The usual Broadcom account team line is that VCF subscription is the new normal and resistance only delays the inevitable. We disagree. In roughly 20 of the 30 plus VMware environments we benchmarked, buyers accepted the first VCF quote at face value. They paid for cores they did not run and bundle components they never deployed.
The subscription model itself is fixed, and arguing against it wastes negotiating time. The count it is applied to is yours to set. License to consolidated, dense hosts, remove NSX and Aria where no cluster uses them, and bring a credible migration plan to the table.
How do you control the VCF renewal increase?
Treat the first renewal as a negotiation, because buyers moving off perpetual VMware to VCF subscription routinely saw annual cost triple. Start with the count, then the terms, then the price.
- Benchmark cores: license only the hosts you run, and retire idle hardware before the count is fixed.
- Use the term: a multi year commitment can hold the per core rate flat for its length.
- Exit credibility: a real migration plan to an alternative such as Proxmox or Hyper-V strengthens your position.
- Timing: Broadcom's fiscal quarter end is when deal approvals tend to move fastest.
Broadcom's investor disclosures show its VMware revenue strategy is built on subscription conversion. Knowing that, you negotiate against a vendor that needs the renewal as much as you do.
Every host you retire before the count is fixed comes off the invoice for the whole term.
What will the account team say, and how should you answer?
| What you will hear | What to say back |
|---|---|
| "Your core count comes from our install base records." | "Here is our count from your own counting script, host by host. Please quote against it and tell us where you disagree." |
| "All of your hosts need to move to VCF." | "Quote our compute only clusters on vSphere Foundation as separate lines. We will decide cluster by cluster." |
| "vSAN capacity is covered, you do not need to model it." | "Our raw capacity is above the allowance after consolidation. Fix the add on price per TiB for the full term." |
| "This discount expires at quarter end." | "We will sign on the corrected count this quarter if the terms below are in the order." |
Which contract terms should you ask for?
- A host and core schedule attached to the order. It fixes what you bought and stops a later dispute about the baseline.
- A reduction right at renewal or hardware refresh. Without it, a multi year term locks in cores you plan to retire.
- A price hold on added cores. New hosts in year two should come in at the contracted per core rate.
- A fixed vSAN add on rate. Storage growth is the line most likely to surprise you mid term.
- A cap on the renewal uplift. See our note on renewal uplift caps for the levels buyers achieve.
- A tier change credit. If a VVF cluster later needs VCF, the VVF spend should count toward the upgrade.
These are requests. Broadcom does not grant them by default, and each one is easier to win before the count and the discount are agreed. Our guide to price cap negotiation covers the wording.
When should each step happen before the renewal date?
| Before renewal | What to do |
|---|---|
| 12 months | Run the counting script, build the host level model, and decide which clusters to consolidate or retire. |
| 6 months | Finish the component map, choose VCF or VVF per cluster, and cost a migration alternative. |
| 3 months | Send Broadcom your count, request the quote on it, and table the contract terms. |
| 1 month | Check the final order against your host schedule and vSAN model, then sign. |
For more detail on how the core rules apply to specific hardware, see VMware core licensing explained and our VCF licensing guide.
What to do next
- Inventory. List every host by CPU count and physical cores per CPU.
- Count. Calculate licensed cores, including the 16 core per CPU floor, and flag every socket below 16.
- Consolidate. Model a shift onto denser hosts to cut total cores, and retire idle hosts before the count is fixed.
- Map components. Record which bundled VCF components each cluster deploys, and price VVF where they are absent.
- Check storage. Compare your raw storage footprint against the included vSAN entitlement, before and after consolidation.
- Negotiate. Benchmark the renewal quote, bring a credible exit plan, and ask for the contract terms above.
Frequently asked questions
How is VMware Cloud Foundation licensed?
VCF is sold as a per core subscription, counted on every physical core of every ESXi host where it is installed, with at least 16 cores charged per CPU. Broadcom retired perpetual licenses, so the bill is the per core rate times total licensed cores, and you report that count to Broadcom every 180 days.
What is the 16 core minimum penalty?
Any CPU with fewer than 16 cores still bills as 16. On low density chips this adds 10 to 25 percent to licensed cores across a typical host mix, and far more on single socket 8 core servers. The penalty stays until you refresh to processors with 16 or more cores.
Does consolidating hosts reduce VCF cost?
Yes. In our benchmarks, moving workloads onto high core count servers cut licensed cores by 15 to 30 percent. Time the refresh before the renewal count is fixed, and check the vSAN effect first, because fewer cores also means a smaller included storage allowance.
Is the VCF bundle worth it?
Only if you use the components. It pays off where clusters run vSAN, NSX and the automation tools. Where you only need compute virtualization, vSphere Foundation usually fits better, and you can ask Broadcom to quote it for those clusters alongside VCF for the rest.
How does the vSAN entitlement work in VCF?
VCF includes 1 TiB of vSAN per licensed core, and capacity above that is bought as add on TiBs. Broadcom measures the need against raw capacity, so size it from the vSAN capacity view, and model overage before signing, because it can rival the core subscription.
Why did our VMware cost triple under Broadcom?
Moving from perpetual licenses plus support to VCF subscription commonly tripled annual cost. You used to pay maintenance on licenses you already owned, and now you pay a recurring per core subscription for the full bundle, often on a padded core count.
Can we still buy perpetual VMware licenses?
No. Broadcom announced the end of availability of perpetual licenses on December 11, 2023. Existing perpetual licenses keep running, and support continues until your current contract ends, but new purchases and renewals are subscription only.
What bargaining power do we have on a VCF renewal?
You have more room than the first quote suggests. Broadcom needs the subscription conversion, so a documented exit option, a corrected core count, a VVF split for compute only clusters and a multi year commitment in exchange for fixed terms all carry weight in the negotiation.