Insights
VMware costs set to soar? Act now to secure licensing savings until 2030
- Date 05 May 2025
- Filed under Insights
Impact of Broadcom’s VMware acquisition on pricing and infrastructure
The acquisition of VMware by Broadcom in 2022 has brought about an enormous shift to the way customer’s VMware devices will be managed, with much discontent centred around potential rising costs of its new pricing model, and persistent on premises infrastructure expenses.
The key impacts include:
- A shift to subscription / end of Perpetual Licenses
- Drastic product consolidation
- Broadcom halved VMware’s workforce, resulting in reports of longer response times, and heavier reliance on community forums.
For existing VMware customers looking to save costs, we’re here to support you on that journey. To get started, we’re offering a free assessment for organisations looking to move workloads to Oracle OCI. You’ll know costs upfront, and we’ll also provide a no-obligation comprehensive migration proposal.

Since the announcement and changes, many customers have reported dramatic cost increases – some between 2× to 10×, and even claims of up to 600%, 800%, or 1200% hikes. And, whilst a consolidated line-up of subscription bundles has simplified things, many customers holding niche and standalone tools are on their way to being unsupported once their contract ends.
For many customers, it has been the signal to start planning an exit strategy.
Computershare which manages data for 40,000 companies and 75 million individual customers announced it had migrated 24,000 virtual machines onto Nutanix AHV, after the news that its VM software fees would increase up to 15 times. Others include Sydney’s Macquarie University and Gold Coast’s Bond University, who also recently outlined their efforts to exit a VMware environment.
Challenges for budget-constrained sectors
Roger Barlow, General Manager of Managed Services Clients here at NRI ANZ says “Many organisations are impacted by the new changes to VMware licensing, with budgetary restrained sectors such as education and healthcare at a particular disadvantage.
For our customers, we’re helping them understand what’s running under their VMware estate, with the first step being to identify which underutilised licenses can be eliminated; which are compliant and cannot be deemed as misaligned by a Broadcom audit; and giving them a comprehensive benchmark as to how they should respond in the months and years to come,” says Roger.
Scalability and control with Oracle OCI
One of our recommendations to avoid the immediate risk of cost escalations is Oracle Cloud’s VMware Solution (OCVS). This promotes a quick and easy shift of workloads to Oracle Cloud Infrastructure (OCI) and promises stable VMware licensing costs until 2030.
OCVS is the only cloud offering providing full administrative control over VMware environments, mirroring on premises setups, and serves as an extension of existing on premises systems, enabling migration at your pace —whether fast or slow.
READ MORE: Oracle Cloud VMware solution
OCVS doubles as disaster recovery for both on premises and hybrid configurations, enhancing resilience. From a VMware perspective, it’s the simplest lift-and-shift to any cloud, requiring minimal adjustment.
Beyond cost and ease, OCVS ensures control and scalability. With full oversight of VMware and Oracle Database environments, application customisations and database compatibility are preserved.
Roger says, “Oracle OCI’s scalability shines for organisations with fluctuating compute and storage needs, helping them counter VMware’s price surge with a flexible, controlled, and scalable path forward, making it a strategic choice for businesses navigating this shift.”
Seamless cloud transition with OCVS
For existing VMware customers looking to save costs, we’re here to support you on that journey.
Our expert team will help guide you forward with a plan that suits you. Ensuring your next move is strategic and sustainable. To get started, we’re offering a free assessment for organisations looking to move workloads to Oracle OCI. You’ll know costs upfront, and we’ll also provide a no-obligation comprehensive migration proposal.
Book now
For a limited time, for qualifying environments we’re offering a free assessment of existing VMware workloads, and you’ll also receive a no-obligation comprehensive migration proposal.
Qualifying environments: 100 to 400 hosts and 1,000 to 4,000 virtual machines (VMs). Subject to availability. NRI reserves the right to modify or withdraw this offer at any time without notice.