VMware ends perpetual licenses, causing a huge increase in costs

The manufacturer VMware, which virtualises computer systems with vSphere, was sold at the end of 2023. The publicly listed company is now sparking concern, as the changed licensing model for the software entails considerable additional costs. Michael Gempp, IT System Architect at ControlTech Engineering AG in Liestal, explains exactly what this means.

What exactly is changing with the new licensing model for VMware products?

For many VMware customers, the way in which they purchase the products will change significantly in the future. In the past, VMware tried to persuade its customers with more or less gentle pressure to switch from perpetual licenses to subscription models.

Following the takeover, the new owner Broadcom is now simply presenting customers with a fait accompli. Current support contracts will still be fulfilled, but support extensions for such licences will no longer be offered.

The new licensing strategy affects all products, including vSphere Standard and vSphere Enterprise Plus. The new licensing model uses hardware-specific parametres such as the number of cores or the size of the memory in TiB for vSAN to calculate costs. For many customers, this translates into a huge increase in costs.

Is it possible to optimise costs in view of the rising licensing costs?

Yes, this is possible. You can optimise the hardware-specific parameters, adapt the licensing strategy or even consider a product from another provider.

Are there good alternatives to VMware vSphere and vSAN?

There are alternatives to vSphere and vSAN. However, it's difficult to make a general recommendation, as the alternatives must of course fit the customer's needs.

Which sectors need to take action?

Virtual environments are common in industrial production as well as in industrial IT. We have implemented virtualisation solutions with VMware for our customers from various industries, from pharmaceuticals to the food industry to transportation. Everyone who uses VMWare products is affected by the licence changeover.

A professional assessment helps you to put things into perspective

ControlTech Engineering will provide you with expert support in answering your most important questions: Which products are currently licensed and how will costs foreseeably change in future? If required, there are options available involving the optimisation of the hardware in line with the licensing model or different products could be considered. Our experts will be happy to advise you.