Estimate the three year TCO of leaving VMware for Nutanix, Proxmox, or Azure. Run cost, migration cost, and the leverage it gives you.
The most effective lever in a Broadcom VMware renewal is a credible exit. Pricing a real alternative on Nutanix, Proxmox, or Azure changes the conversation even if you ultimately stay.
Model the three year TCO first, then negotiate against it.
Quick answer
A credible VMware exit to Nutanix, Proxmox, or Azure typically models 35 to 60 percent below the Broadcom run cost and anchors the renewal even if you stay. Example: $1M of VMware spend across 50 hosts models near $650K per year on Nutanix plus about $600K migration. See VMware Cloud Foundation and Broadcom VMware.
VMware exit TCO estimator
A credible VMware exit to Nutanix, Proxmox, or Azure typically models 35 to 60 percent below the Broadcom run cost and anchors the renewal even if you stay.
Each platform carries a different run cost relative to VMware. Open platforms cost less to license but more to operate; managed clouds shift the mix.
Migration is a one off project cost driven by host count and workload complexity. It is real, but it amortizes across the term.
Even an exit you do not take has value. A credible, costed alternative anchors the Broadcom renewal down.
The exit is as much a skills and tooling question as a cost one. Factor the team's readiness into the pathway.
A phased exit moves non critical workloads first to prove the model and build leverage without betting the estate.
| Alternative | Run cost vs VMware | Trade off |
|---|---|---|
| Nutanix | Lower | Hyperconverged refresh, retraining |
| Proxmox | Lowest | Open source, in house operations |
| Azure / Hyper-V | Variable | Cloud run rate, egress, commitment |
The standard advice is that a VMware exit is too disruptive to be worth it, so you should just negotiate the renewal. We disagree. The exit does not have to be executed to pay off. A credible, costed alternative is the single strongest lever on a Broadcom renewal. The buyer side move is to model a real phased exit, take it far enough to be believable, and let that number set the ceiling on what you pay Broadcom.
The first Broadcom renewal is not a discount conversation. It is a leverage conversation. Build a credible exit path twelve months out and the per core quote reshapes itself.
It depends on the estate, but even an exit you do not execute is worth modeling. A credible, costed alternative is the strongest lever on a Broadcom renewal.
Proxmox usually has the lowest licensing cost but needs in house operations. Nutanix lowers run cost with a hyperconverged refresh. Azure shifts to a cloud run rate. Model all three.
It is directional, applying platform run cost factors and a migration estimate to your inputs. A real design validates the number.
A phased exit of non critical workloads can start in months; a full estate move is a multi year program. Phasing builds leverage early.
Yes. A credible alternative anchors the Broadcom renewal down. Many buyers cut the renewal materially without leaving.
Yes. It is free and runs in your browser. No payment and no account required.
No. It is buyer side data. Build the position internally and use the alternative TCO as your ceiling.
We model the alternative TCO, plan a phased exit, benchmark the renewal against our deal database, and sit at the table. We are not a Broadcom partner.
Per core math is the anchor. Walk into the Broadcom renewal with a billable core count you trust and the price shock reshapes itself.
A buyer side reference on the Broadcom VMware estate: per core subscriptions, the 16 core minimum, VCF and VVF bundles, renewal risk, and exit paths.
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