Broadcom’s VMware Changes: What It Means for Your IT Strategy

Customers are facing licensing and cost changes as a result of Broadcom’s VMware changes, and we’re already seeing this impacting IT budgets and strategies. If your organization relies on VMware today, it’s time to consider what these changes mean and what your options are.

What’s Changed with VMware?

Specifically, Broadcom introduced significant changes to VMware’s licensing and pricing model:

Subscription-only licensing: Broadcom eliminated perpetual licenses, so customers must move to subscription bundles.
Per-core pricing increases: Modern multi-core servers now drive significantly higher costs.
Reduced flexibility: Fewer product bundles can force you to pay for features you don’t need.

As a result, enterprises that have long depended on VMware lose control, face higher costs, and encounter uncertainty in long-term planning.

Why Standing Still Isn’t an Option

This means that remaining on VMware under the new model absorbs higher costs with less flexibility. Hardware refresh cycles, training, and growing licensing fees quickly compound. CIOs and IT leaders increasingly face expensive renewals with little room to maneuver.

IDC research warns that organizations without a cloud strategy risk escalating costs and slower innovation.

Azure VMware Solution: The Fastest Path Forward

Microsoft’s Azure VMware Solution (AVS) offers a proven path forward. With AVS, you can run your VMware workloads natively in Azure without refactoring applications or retraining your teams.

Key advantages include:

Rapid migration using VMware HCX with minimal disruption
Keep your tools – vSphere, vSAN, NSX, Horizon all supported in Azure
Predictable costs with Azure’s OpEx model and cost-optimization tools
Enterprise security and compliance (HIPAA, PCI-DSS, GDPR, ISO 27001)
Native Azure integration to unlock AI, analytics, backup, and disaster recovery

The ROI of Moving Now

Independent research confirms the business case:

Enterprises saw a 357% three-year ROI and 37% lower cost of operations when migrating to AVS (IDC).
A Forrester Total Economic Impact™ study projects a 298% ROI, $7.9M net present value, and payback in under six months, with up to 80% reduction in downtime.
Customers avoid 90% of server refresh costs, decommission up to 75% of servers by year three, and save $5.1M in hardware and ESU costs (Forrester TEI).

The numbers are clear: AVS not only helps organizations escape Broadcom’s rising costs, it creates measurable financial and operational advantages.

How Quisitive Can Help

As a multi-year Microsoft Partner of the Year and holder of 19+ advanced specializations, Quisitive has helped enterprises across industries navigate this transition. Our AVS Migration Services minimize risk and maximize ROI with:

Comprehensive assessments and migration roadmaps
Proven migration methodology with rollback/failback safeguards
Post-migration optimization and managed services

Next Steps

By moving VMware workloads to Azure, you can stabilize costs, modernize faster, and future-proof your IT operations.