Exploring VMware’s updated licensing structures: The end of perpetual licenses and the start of new way to VMware
Strategix Technology Solutions
The best kept secret for modernising ICT infrastructure, data, applications and security.
In November 2023, Broadcom completed its acquisition of VMware in a deal worth $61 billion. At the same time, the company revealed that it would be changing its licensing structure from the existing format of perpetual licenses to a subscription model. As the firm moves into a new era under Broadcom’s leadership, customers are asking what the new model means for their businesses, especially if they have existing perpetual license contracts in place.
In the official VMware by Broadcom statement, the company explained that the move to the new subscription model was designed to align the company’s simplified and streamlined portfolio with a more relevant payment plan. The company said that, ‘the portfolio simplification across all VMware by Broadcom divisions stems from customer and partner feedback over the years telling us our offers and go-to-market are too complex’.
The VMware Partner Landscape is undergoing notable change, with several providers experiencing substantial shifts in their partnership status, including being revoked altogether.
Strategix has been invited by VMware by Broadcom to become both a Premier Cloud Services Provider and Premier Reseller Partner.
Here is everything you need to know about these changes, directly from our experts:
First, if your organisation currently has a contractual agreement with VMware that includes a perpetual license and active support, you can continue using the services until your current terms expire, after that support will end. That said, you can trade your current products on a perpetual license for entry into the subscription model and can potentially benefit from upgrade and pricing incentives.
Second, VMware will no longer offer perpetual licenses for any of its products. This means that current licenses will no longer be able to be renewed once they conclude, and instead you will need to choose between either a hybrid purchase programme (HPP) or a subscription purchase programme (SPP). There is also the option to bring your own subscription license to ‘VMware validated hybrid cloud endpoints running VMware Cloud Foundation.’, though this is limited to Pinnacle partners and pending final confirmation.
Strategix consultants will work with you to explore both subscription and cloud-based license models to ensure you find the most suitable solutions for your requirements.?
Third, while on the topic of VMware Cloud Foundation, the subscription list has been reduced by half and higher support levels have been added. A streamlined licensing model will be implemented to reduce complexity, by focusing on four core options
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Fourth, the traditional VMware Cloud Partner Programme has been depreciated, and will be phased out in March with final reporting due in April. Currently, there is a process of transitioning to a new Cloud Services Provider costing model, which could affect customer platforms in the coming months.
Strategix’s expert teams are available to assist in reviewing your existing environment, and enabling a smooth transition to this new model.?
What happens next?
If your company happens to be on a VMware perpetual license, then you need to take some very simple steps to prepare for the change. Strategix has been invited as both a premier Cloud Services Partner and a Premier Reseller Partner for Subscription Licensing due to our proven track record and deep expertise; we are well positioned to help you navigate these changes.
Start by assessing your existing license contracts and explore your options with us to ensure you know exactly when they are due to expire. Then, get in touch with one of our experts today, and let’s work with you to explore subscription or cloud-based alternatives and ensure you find the most suitable licensing solution for your business requirements and budget. For partners and resellers not invited into the CSP programme, Strategix is open and ready for partnership which is at the core of our collaborative approach.?