Broadcom / VMware
vSAN and HCI, evaluated before renewal.
Capacity licensing changed the HCI math. Here is the 2026 framework for deciding stay, move, or hybrid, and the levers that cut the bill either way.
Capacity licensing changed the HCI math. Here is the 2026 framework for deciding stay, move, or hybrid, and the levers that cut the bill either way.
Broadcom moved vSAN to per tebibyte capacity licensing inside VVF and VCF, which changed the HCI cost equation and reopened the Nutanix comparison for 2026.
vSAN licenses per tebibyte of raw capacity, sold standalone or as an allowance inside VVF and VCF, as described on the VMware vSAN product page. The per CPU socket license is gone with the rest of the perpetual portfolio.
Measure raw capacity per cluster before any quote conversation. The allowance math decides whether your estate is effectively included or materially additional.
Capacity pricing shifts cost from compute density to storage density, so storage heavy clusters that were cheap per socket became expensive per tebibyte under both VVF and VCF. The TCO model has to be rebuilt, not indexed.
HCI cost drivers, old model vs 2026 model
| Driver | Per CPU era | Per TiB era | Buyer response |
|---|---|---|---|
| Dense storage nodes | Cheap | Expensive | Rebalance storage tiers |
| High core compute | Expensive | Bundled in VVF or VCF | Consolidate hosts |
| Cold data on vSAN | Tolerated | Punished | Move to external arrays or object storage |
| Cluster sprawl | Linear | Compounding | Consolidate clusters before quoting |
Cold and backup data sitting on vSAN datastores is the first overpayment we find. Per tebibyte pricing makes vSAN a premium tier; treat it as one and move cold data off it.
Evaluate alternatives on a like for like workload basis with migration cost included, because the license delta only matters net of the move. Nutanix is the primary anchor, with Azure Stack HCI and external array plus vSphere as secondary paths.
In our 2024 to 2025 renewals, a documented evaluation moved Broadcom HCI pricing 25 to 40 percent even where the buyer ultimately stayed.
Stay when your storage profile fits inside or near the bundled allowance and the operational integration pays its way; move when storage density drives the bill and a refresh window is open. The wrong answer is deciding by default at renewal pressure.
Whatever the direction, write price caps and renewal protection into the subscription. An uncapped per tebibyte rate on growing data is a structural escalator.
The standard advice frames the 2026 decision as VMware versus Nutanix, a platform bake off. We disagree with the frame. In roughly 9 of the 15 plus HCI estates Morten Andersen reviewed in 2024 to 2025, the bigger lever was inside the estate: cold data sitting on premium vSAN capacity and clusters that a refresh cycle could consolidate. Rebalancing storage tiers cut licensed tebibytes 20 to 35 percent before any vendor conversation. The buyer side move is to shrink the licensed footprint first, then run the platform comparison on the smaller estate. Migrating an unoptimized estate just moves the overspend to a new logo.
Three cuts of our advisory engagement file frame the size of the opportunity.
Source: Redress Compliance advisory engagement file, 2024 to 2025.
Treat the ranges as negotiation benchmarks, not promises. Your estate sets the baseline; the engagement file tells you what disciplined buyers achieved against the same vendor playbook.
Per tebibyte pricing made vSAN a premium storage tier. Buyers who keep treating it as default storage fund the difference.
The moves below turn this analysis into a lower invoice at the next renewal.
White Paper · Broadcom / VMware
Broadcom VMware Renewal Survival 2026
The 2026 buyer side reference on Broadcom VMware renewals. Read it free.
vSAN licenses per tebibyte of raw capacity. VVF includes a small per core capacity allowance and VCF a larger one; capacity above the allowance is bought per tebibyte per year. The old per CPU socket licensing is gone.
For storage heavy clusters, usually yes: we measured 30 to 80 percent increases versus the per CPU era. Compute dense clusters with modest storage can land flat or better because of the bundled allowance, which is why per cluster math is essential.
Only for modest footprints. The VVF allowance covers small datastores; production HCI estates with dense storage buy paid capacity on top. Run the allowance math per cluster before treating vSAN as included.
Yes. In our 2024 to 2025 renewals a documented evaluation with named clusters, a full cost model, and executive sponsorship moved pricing 25 to 40 percent, even where the buyer stayed. Undocumented threats moved nothing.
Move cold and backup data off vSAN datastores. Capacity licensing prices every tebibyte, so externalizing data that does not need HCI performance cut licensed capacity 20 to 35 percent in the estates we reviewed.
Inside a hardware refresh window. Deciding at renewal pressure without a refresh open means paying for hardware and licenses twice; aligning the two decisions avoided 20 to 30 percent in stranded spend in our engagements.
Rarely. The defensible pattern is hybrid: keep vSAN for hot tiers where the operational integration pays, externalize cold data, consolidate clusters, and shrink the licensed footprint before any migration decision.
Per tebibyte rate caps, renewal uplift protection, and allowance definitions frozen in the order form. Data grows; an uncapped capacity rate is a built in escalator on that growth.
The renewal sequence, the capacity math, and the alternative evaluation that moves Broadcom pricing.
Used across more than five hundred enterprise engagements. Independent. Buyer side. Built for procurement leaders running the next renewal cycle.
Shrink the licensed footprint first. Then run the platform comparison on the estate you should have, not the one you drifted into.
500+ enterprise clients. 11 vendor practices. Industry recognized. One conversation can change what you pay for the next three years.
One buyer side briefing a week. Pricing moves, audit signals, and the levers that work. No vendor spin.
