VMware Cloud Foundation vs vSphere Foundation: Licensing, Features, and Pricing Comparison

VMware Cloud Foundation vs vSphere Foundation: Which Subscription Is Right for Your Data Center?

Broadcom’s acquisition of VMware in late 2023 has significantly impacted VMware’s licensing model, forcing enterprises to choose between two primary subscription bundles: VMware Cloud Foundation (VCF) and vSphere Foundation (VSF).

This comparison is urgent and relevant because legacy VMware licenses are being phased out, prices and package contents have changed significantly (VCF’s list price was cut by 50%), and IT leaders must quickly determine which bundle optimizes cost and capabilities for their data center in this new post-Broadcom era.

Licensing Model and Core Pricing

Insight:

Both VMware Cloud Foundation and vSphere Foundation are sold as subscription licenses on a per-CPU core basis, with a minimum of 16 cores per CPU. The key difference is cost and scope: VCF carries a higher price per core but bundles more capabilities, whereas VVF is priced lower for a leaner feature set.

Scenario:

Imagine a global enterprise with 10 hosts, each with dual-socket 20-core CPUs (total 400 cores). Under Broadcom’s pricing, vSphere Foundation’s list price is roughly $135 per core annually, while Cloud Foundation is about $350 per core annually. For a 3-year term on 400 cores, that’s the difference between approximately $162,000 (VVF) vs. $420,000 (VCF) in subscription fees.

Both can be purchased as 1-, 3-, or 5-year contracts (longer terms often yield better rates). In this scenario, the procurement team must justify the nearly 2.6 times higher cost of VCF with the corresponding value from its additional features.

Takeaway: Carefully model your core counts and contract term.

Align the subscription choice with your budget and required features: vSphere Foundation minimizes upfront costs for essential virtualization, whereas Cloud Foundation requires a larger investment but can be cost-effective if you need its full stack.

Always factor the 16-core-per-CPU licensing rule into hardware planning to avoid paying for unused cores.

Cracking the Per‑Core VMware Licensing Model: Calculations and Cost Pitfalls

Storage Capacity: vSAN Entitlements per Core

Insight: A major differentiator is the built-in storage capacity provided by VMware vSAN. Cloud Foundation includes a generous vSAN entitlement of 1 TiB of raw storage per licensed core, whereas vSphere Foundation includes 250 GiB per core (recently increased from 100 GiB).

This “free” vSAN capacity can significantly impact storage costs if you plan to utilize VMware’s software-defined storage.

Scenario:

A financial services firm operates a private cloud with data-intensive applications that require 500 TB of storage. With 200 cores of Cloud Foundation, they automatically receive up to 200 TiB of vSAN capacity included. The remainder (300 TB) would require additional vSAN add-on licenses. In contrast, 200 cores of vSphere Foundation would only include 50 TiB, leaving 450 TB to license as add-on capacity.

The cost difference is stark: Cloud Foundation’s higher per-core price partially offsets external storage costs by bundling more capacity. On vSphere Foundation, the firm would need to purchase significant vSAN Enterprise add-on licensing “from zero” for anything beyond the included 250 GiB/core, potentially erasing the savings from the lower core price.

Takeaway: Assess your storage needs upfront.

If your data center relies heavily on vSAN (virtual SAN) for storage, the included 1 TiB/core in Cloud Foundation can yield substantial value. Enterprises with large storage footprints may find Cloud Foundation’s higher core cost justified by avoiding the need for separate storage licenses.

Conversely, suppose your workloads utilize external SAN/NAS storage or only modest vSAN capacity. In that case, vSphere Foundation may be more economical; however, be prepared to license additional vSAN capacity if you grow beyond 250 GB per core.

Kubernetes and Network Virtualization

Insight: Both subscriptions include Kubernetes capabilities via Tanzu Kubernetes Grid (TKG) integrated into vSphere, enabling enterprises to run containerized workloads.

However, networking support differs: VMware Cloud Foundation bundles NSX for network virtualization (limited to overlay networking), while vSphere Foundation does not include NSX at all.

This impacts how fully you can leverage Kubernetes and software-defined networking out of the box.

Scenario: A retailer is modernizing its applications with Kubernetes. With vSphere Foundation, they can enable vSphere’s native Tanzu Kubernetes clusters; however, without NSX, the environment will utilize basic distributed switch networking or require separate NSX licensing for advanced features.

This may limit multi-tenant networking or micro-segmentation for containers. On the other hand, Cloud Foundation comes with NSX Networking (overlay) included, allowing the retailer to create virtual networks, automate network provisioning, and integrate container networking seamlessly.

That said, distributed firewall (DFW) for micro-segmentation is not included in base VCF; it’s available only as a “VMware Firewall” add-on. In practice, if the retailer needs container networking with simple isolation, Cloud Foundation covers it. If they also need east-west security controls, they must factor in the additional NSX security add-on (available only with VCF, not VVF).

Takeaway: Match the subscription to your Kubernetes strategy. If your organization plans to scale out modern apps with complex networking requirements, Cloud Foundation’s included NSX provides the necessary underlay for container networking and future-proofs your platform.

Conversely, suppose your container use is minimal or you’re comfortable using basic networking (or third-party CNI plugins) for Kubernetes. In that case, vSphere Foundation can suffice – but budget for NSX separately if those needs grow.

Don’t pay for Cloud Foundation’s networking features if your team won’t use them, but avoid underestimating the importance of network virtualization for large-scale, secure Kubernetes deployments.

Third-Party Support VMware When Cost Increases

Management and Automation Tools

Insight: Both bundles include VMware’s management suite but at different tiers. vSphere Foundation comes with VMware Aria Suite Standard, which provides Aria Operations (vRealize Operations) Advanced for performance monitoring and Aria Operations for Logs (vRealize Log Insight) for log analytics.

Cloud Foundation raises the bar with VMware Aria Suite Enterprise, introducing Aria Automation (formerly vRealize Automation) for infrastructure automation and Aria Operations for Networks (formerly vRealize Network Insight) for enhanced network visibility, among other advanced tools.

This means Cloud Foundation can deliver a full cloud-management platform out of the box, whereas vSphere Foundation focuses on monitoring and logging.

Scenario: An IT operations team at a manufacturing company is seeking to enhance efficiency through automation and improved visibility. If they choose vSphere Foundation, they gain robust monitoring dashboards and centralized logging for troubleshooting issues, which may already be a significant upgrade for some teams. However, they won’t have a built-in tool for self-service provisioning or automated workflows – any desire to implement infrastructure-as-code or multi-cloud automation would require purchasing Aria Automation separately or using third-party tools.

In contrast, Cloud Foundation would give them enterprise-grade automation and network analytics as part of the package.

For instance, they could utilize Aria Automation to enable on-demand VM deployment with governance across the data center, and Aria Network Insight to map dependencies for security planning purposes. The catch is that deploying and maintaining these additional components (such as Aria Automation) requires more expertise and effort.

Takeaway:

Consider your operations maturity and toolchain. If your organization simply needs to ensure performance and keep logs centralized, vSphere Foundation’s Standard suite will meet those needs at a lower cost.

However, if you are pursuing cloud-like agility – such as automating VM/application delivery, implementing network-aware operations, or managing a hybrid cloud – the integrated automation and advanced analytics in Cloud Foundation can help you avoid the need to buy and integrate separate tools.

Be mindful that using advanced tools effectively may require process changes and skilled personnel.

Choose VCF if you’re ready to embrace a true cloud-operating model in your data center; choose VVF if you prefer a lighter footprint or plan to add management capabilities a la carte.

Support Level and Lifecycle Services

Insight:

VMware Cloud Foundation subscriptions include Select Support, a higher-tier support service that promises faster SLAs, senior engineers on cases, and proactive guidance (including assistance with activating the full stack and performing lifecycle upgrades via SDDC Manager).

vSphere Foundation includes Production Support, which is the standard 24×7 support offering.

The difference can impact the level of hand-holding and responsiveness you get from VMware, especially during deployments and upgrades.

Scenario: A global bank with a lean IT staff is evaluating which subscription will set them up for success. If they invest in Cloud Foundation, along with the software, they gain access to VMware’s Select Support team.

For example, when deploying the full SDDC stack, VMware can provide guidance on best practices. When it’s time to patch or upgrade the environment, Select Support offers guidance and root-cause analysis to address any issues that may arise.

This is crucial because Cloud Foundation environments tend to be more complex (with NSX, vSAN, Aria, etc. all interlinked). On the other hand, if the bank opts for vSphere Foundation, it still receives 24/7 production support for any issues.

Still, the onus of designing the solution and managing lifecycle tasks lies more with their internal team. Both VCF and VVF can be run in “disconnected” mode (with no mandatory cloud linkage), which appeals to regulated industries – but only Cloud Foundation provides an enhanced support channel for its richer stack.

Takeaway: Align support with your operational needs. Enterprises with limited VMware expertise or extremely critical workloads should consider the value of Cloud Foundation’s Select Support. This premium service can help reduce risk during major upgrades or complex incidents.

In contrast, if your environment is straightforward or your in-house team is highly experienced with VMware, vSphere Foundation’s standard support may be sufficient (and you avoid paying extra for premium support you might rarely use).

Remember that both subscriptions offer flexible terms (1, 3, or 5 years) and Broadcom has introduced “termination for convenience” clauses in contracts – use these to maintain leverage, but plan for timely renewals, as there’s no grace period after subscription expiry.

Legacy vSphere Options – Do They Still Make Sense?

Insight:

Broadcom’s simplification has effectively replaced standalone vSphere editions with these bundles. However, legacy options like vSphere Standard or existing Enterprise Plus perpetual licenses can still play a role in specific scenarios.

vSphere Standard Subscription (VSS) remains available at approximately $50 per core/year, with vCenter, offering barebones virtualization without vSAN or Tanzu.

Some enterprises also have active support for perpetual vSphere Enterprise Plus or vSAN licenses. The question is when it’s prudent to stick with or transition from these older options.

Scenario:

A mid-size company with a static environment (few hosts, no need for container services or vSAN) might find that vSphere Standard subscription meets all their needs at a fraction of the cost of vSphere Foundation.

For example, a 3-host cluster running only legacy VMs doesn’t benefit from Kubernetes integration or Aria Operations. Here, paying $135/core for VVF would waste budget, whereas $50/core for VVS covers virtualization and management via vCenter.

Another scenario: a large enterprise invested heavily in VMware under perpetual licensing – they own vSphere Enterprise Plus and vSAN licenses outright.

With support for vSphere 7 and 8 still available until 2025 and beyond, they could opt to maintain those systems (with support and maintenance) for a while longer.

This “sweating the assets” approach can buy time to evaluate the new subscriptions. However, as Broadcom phases out renewals of legacy support and pushes subscription trade-in programs, this is a temporary window.

Takeaway: Don’t automatically upgrade if a legacy solution suffices.

Evaluate whether the advanced features of Foundation subscriptions are truly needed for each environment. In some cases, vSphere Standard (or staying on existing perpetual licenses for a bit longer) can yield significant savings. For example, ROBO (remote office) sites or dev/test clusters may not require the advanced features of VCF or VVF.

That said, plan for the eventual transition: Broadcom is incentivizing customers to move to subscriptions (even offering credit for unused term support on perpetual licenses).

Maintain an open dialogue with VMware/Broadcom reps about migration options, and map out which legacy workloads might remain isolated on cheaper licensing versus those that justify the full-feature bundles.

Bundling and Add-On Considerations

Insight:

The new licensing model bundles many components, but some capabilities are only available as add-ons, especially for Cloud Foundation customers. Understanding these add-on costs and bundle interactions is crucial.

For instance, if you choose vSphere Foundation and later need NSX’s security features or large-scale Disaster Recovery, you might end up effectively “upgrading” to Cloud Foundation or paying steep add-on fees.

Conversely, Cloud Foundation includes most components for a full private cloud, but if you need advanced security (NSX Distributed Firewall/ATP) or enterprise DR, those are extra. The economics of these bundles can sway your decision.

Scenario:

An enterprise tech firm initially selects vSphere Foundation to keep costs low, but a year in, they decide to implement micro-segmentation firewall rules to tighten security.

Since VMware’s NSX Distributed Firewall is only sold as an add-on to Cloud Foundation, the firm has limited options: upgrade their licenses to Cloud Foundation (and add the firewall add-on), or seek third-party security solutions.

Either path erodes the savings that vSphere Foundation provided. Another scenario: a healthcare company on Cloud Foundation wants to extend robust disaster recovery. They can add VMware Cloud Disaster Recovery or Site Recovery Manager as needed, but these add-ons cost the same whether you run VCF or VVF.

However, a vSphere Foundation customer would also need to license the underlying vSAN capacity for DR target sites (since only VCF allows aggregating the included vSAN entitlement across clusters). This could make a “pieced-together” approach more expensive in total.

Takeaway: Anticipate future needs and factor add-ons into the equation. If key add-ons (such as NSX security, advanced load balancing, and ransomware recovery) are on your roadmap, it may be cleaner and cheaper in the long term to start with Cloud Foundation. Bundling can provide better value – for example, VCF essentially bundles what would otherwise be separate SKUs for vSphere, vSAN, NSX, Aria, and HCX.

On the other hand, if your environment is straightforward today, vSphere Foundation offers flexibility: you can begin with a lighter bundle and add additional services as needed.

Just go in with eyes open: adding capabilities later might involve a new subscription or costly expansions (vSAN add-on licensing starts at 0 TiB, even if you only need a few more TB).

The bottom line is to align the bundle choice with a 3-5 year roadmap of your data center so that you’re not caught off guard by missing features or surprise costs.

Comparison Table: VMware Cloud Foundation vs. vSphere Foundation

Pricing is illustrative list pricing per Broadcom’s 2024 price book. Enterprise agreements and street pricing may vary.

Recommendations for IT, Procurement, and Finance Leaders

1. Perform a Detailed Needs Assessment: Before choosing, map out your technical requirements (storage, networking, Kubernetes, automation) and see which bundle aligns best. Avoid paying for Cloud Foundation if you won’t use NSX or Aria Automation – but also avoid a scenario where you adopt vSphere Foundation and later realize you need features that force an expensive pivot.
2. Model 3- and 5-Year TCO: Use VMware’s pricing calculators or your models to compare total cost of ownership over 3-5 years. Include subscription fees, support, and any add-on licenses you might need. Often, Cloud Foundation can be more cost-effective when you factor in the separate tool costs it replaces. Conversely, if sticking to basics, note the significant savings of vSphere Foundation or Standard.
3. Leverage Trade-In Programs: Engage with VMware/Broadcom early to discuss credit for existing licenses. If you have perpetual vSphere/vSAN, you may be eligible for promotional discounts or credits to transition to subscriptions. This can help mitigate the financial impact and strengthen the business case for the new model.
4. Optimize Core Licensing: Since licenses are based on physical cores, coordinate with your infrastructure team to ensure optimal CPU configurations. For example, favoring CPUs with slightly fewer, higher-performance cores can reduce the number of licenses required. Ensure each CPU is populated to multiples of 16 cores where possible – e.g., two 8-core CPUs in a host still count as 16 cores each due to minimums, potentially wasting licenses. Align hardware procurement with licensing efficiency.
5. Align Subscription Terms with Strategy: If you’re uncertain about the future state of your data center, consider a shorter 1-year term for flexibility (despite a higher annual rate). If you’re confident, a 3- or 5-year contract can secure better pricing. Additionally, plan renewals are important; Broadcom enforces renewals strictly (with no grace period), so missing a renewal could result in penalties or service disruption.
6. Assess Operational Readiness: Cloud Foundation introduces more components (NSX, SDDC Manager, etc.). Ensure your team (or integration partner) has the skill to deploy and run the full stack. If not, consider investing in training or professional services, or opt for the simpler vSphere Foundation and gradually phase in the complexity. The included Select Support in VCF is valuable, but internal know-how remains critical.
7. Segment by Use Case: You don’t have to pick one subscription for all environments. Many enterprises mix editions: e.g., use Cloud Foundation in core data centers where full feature set is needed, and use vSphere Standard or Foundation in edge or test environments. Just verify any contractual limitations on mixing (generally possible outside of all-in Enterprise License Agreements). Plan segmentation to avoid over-provisioning expensive licenses to low-priority workloads.
8. Monitor vSAN Consumption: Keep an eye on how close you are to the included vSAN capacity limits. If you approach 250 GiB/core on VVF, you’ll need to budget for vSAN add-on licenses (which must cover all cluster capacity from 0 TiB). On VCF, if you approach 1 TiB/core across your deployment, similarly plan for add-on capacity. Monitoring tools (like vCenter or Aria Operations) can help track this so you can proactively manage growth or optimize storage usage.
9. Negotiate Support Needs: If your operations require the enhanced support (SRE, faster response) but you don’t need all of VCF’s components, discuss options with VMware. In some cases, large customers can negotiate support upgrades or success services in addition to vSphere Foundation. Always align the support level with the criticality of the workloads – production support is robust, but mission-critical apps might warrant the extra assurance from Select.
10. Stay Informed on Portfolio Changes: VMware’s portfolio continues to evolve under Broadcom. Pricing, bundle contents, and add-on availability are subject to change (for example, vSAN entitlement was recently increased for vSphere Foundation). Keep in touch with your vendor or partners for the latest updates. This will ensure you capitalize on improvements (or prepare for any feature deprecations) in your chosen subscription.

Checklist: 5 Actions to Take Now

• Audit Your Environment: Inventory all VMware hosts (CPU counts, cores, versions) and current licenses. Document your storage usage (vSAN TB or external storage) and feature usage (NSX? vRealize suite). This baseline will inform your decision regarding your subscription choice.
• Gather Quotes for Both Options: Request pricing for vSphere Foundation and VMware Cloud Foundation for your environment, across 1-year, 3-year, and 5-year terms. Comparing these side by side will clarify the cost delta and help you plan budget approvals.
• Map Requirements to Bundles: Create a simple table that outlines which needed features correspond to VCF vs. VVF. For example, if you tick features like “NSX network virtualization” or “Infrastructure automation,” those map to Cloud Foundation. This mapping will make the decision rationale clear to both IT and non-IT stakeholders.
• Plan the Transition Timeline: If you’re on legacy licenses, note the key dates (support end dates, renewal deadlines). Build a timeline for migrating to subscription – including time for any necessary hardware refresh (to meet support matrix for vSphere 8) and deployment of new components (especially if moving to VCF’s full stack).
• Communicate with Stakeholders: Brief your CIO, finance team, and procurement on the coming changes. Ensure that everyone understands that “VMware Cloud Foundation vs vSphere Foundation” is not just a technical choice, but a strategic one that affects cost, support, and capabilities. Getting buy-in early will smooth the procurement and implementation process when you decide on the subscription.

FAQs

Q1: What are the primary differences between VMware Cloud Foundation and vSphere Foundation?
A1: VMware Cloud Foundation is a comprehensive bundle that includes vSphere Enterprise Plus, NSX network virtualization, vSAN storage (1 TiB/core), the full Aria Suite Enterprise (operations, logs, automation, and network insight), HCX for hybrid cloud, and comes with premium Select Support. vSphere Foundation includes vSphere Enterprise Plus as well, but with a smaller vSAN allocation (250 GiB/core), no NSX or HCX by default, and a lighter Aria Suite (monitoring and log analytics only). It has standard production support. In short, Cloud Foundation is the “all-in-one” cloud platform (at a higher cost), whereas vSphere Foundation is a streamlined virtualization+management offering suited for most general workloads.

Q2: How do the pricing and minimums work for these subscriptions?
A2: Both are sold per physical CPU core. Broadcom’s list pricing (as of 2024) is roughly $350 per core/year for Cloud Foundation and $135 per core/year for vSphere Foundation. Each CPU processor must be licensed for at least 16 cores (even if it has fewer). A dual-socket server with 2 x 10-core CPUs is counted as 2 x 16 = 32 cores for licensing purposes. You can opt for 1-year, 3-year, or 5-year subscription terms. Longer terms typically lower the effective annual cost, and all subscriptions include 24×7 support (with VCF at a higher support tier). Always verify current pricing with VMware, as discounts and programs can affect these numbers.

Q3: If I already have vSphere and vSAN perpetual licenses, should I switch to a subscription now?
A3: It depends on your situation. Broadcom is phasing out new sales of perpetual licenses and will eventually end support renewals for them, prompting customers to transition to subscriptions. Suppose your existing environment is stable and your licenses are active. In that case, you might continue using them in the short term while evaluating the new model – especially if that avoids a sudden budget hit. However, plan ahead: engage with VMware about conversion offers (they often provide credit for remaining support value when migrating to subscription). If you foresee needing any of the new features (such as Tanzu or NSX) that weren’t included in your old licenses, moving to vSphere Foundation or Cloud Foundation could deliver those in one package. Many enterprises choose to transition at a natural refresh cycle or before support expiration. Be sure to weigh the long-term costs: perpetual licenses had a large upfront cost plus annual support, whereas subscriptions spread the cost annually but can be higher over time if list prices rise.

Q4: Can I mix and match Cloud Foundation and vSphere Foundation in my organization?
A4: Yes, in most cases you can use both – for example, you might license one cluster with VCF and another with VVF, based on their different roles. Outside of certain enterprise license agreements that require standardization, VMware allows you to have different subscription types for different hosts, as long as each host is fully licensed under one model. Many organizations take a tiered approach, using Cloud Foundation for primary data centers or where the full feature set is required, and using vSphere Foundation or even vSphere Standard for secondary sites or less critical environments. Just note that features don’t extend between license types – a host licensed with vSphere Foundation won’t magically gain NSX from a host licensed with VCF. Additionally, management tools like Aria Operations can typically manage multiple clusters; however, the included Aria license in each bundle is intended for the infrastructure licensed under that bundle. In summary, mixing is technically possible and sometimes financially prudent; however, design your architecture to keep clusters aligned with the capabilities of their respective license tiers.

Q5: What should CIOs and finance leaders watch out for in VMware’s post-Broadcom contracts?
A5: Beyond the technical features, there are several commercial considerations:

• Price Increases & Discounts: Broadcom has simplified its portfolio; however, please note that list prices are subject to change. Cloud Foundation’s price was reduced by 50% at the announcement, but annual increases are possible. Ensure any quoted pricing is locked in via a contract and watch for multi-year discount opportunities.
• Renewal Terms: The new agreements typically have strict renewal policies – no grace period after expiration. CIOs should ensure there’s a process to track and renew subscriptions in advance to avoid any lapse (which could mean re-buying licenses with a “late renewal” fee).
• Support Tier Differences: With two support tiers, leaders should decide if the premium support is worth the cost for their operations. It might be helpful to negotiate pilot periods or SLAs and measure the difference.
• Termination Clauses: Some VMware subscriptions now include a Termination for Convenience (TFC) clause, essentially allowing cancellation, although usually with a notice period and no refund for unused term. Understand the conditions under which you can downscale or exit, especially if your strategy might shift (such as adopting more public cloud, which could reduce on-premises VMware needs).
• Bundle Rigor: Following Broadcom’s changes, VMware is less flexible in selling individual components as standalone products. This means that if your enterprise prefers a custom mix (such as just buying NSX or vSAN alone), that might no longer be possible without the entire bundle. Finance leaders should anticipate that future spending with VMware will be in larger chunks (bundle-oriented) rather than many small purchases.
  In summary, CIOs and CFOs should scrutinize the new subscription contracts for any terms that differ from the old VMware deals, ensure budget plans accommodate a subscription model, and maintain flexibility by aligning contract choices with the company’s strategic direction (such as cloud adoption timelines or data center consolidation plans).

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