Cores the hardware doesn’t have
Every processor licenses at least 16 cores. On hosts with smaller CPUs, part of the bill covers capacity that does not physically exist.
How Broadcom prices VMware for enterprises
Broadcom sells VMware as term subscriptions. Perpetual licenses are gone, and the catalog is concentrated into two bundles: VMware Cloud Foundation, or VCF, the full private cloud stack, and vSphere Foundation, or VVF, the compute-focused tier.
Both are licensed per physical core across every host in scope. Hyper-threading does not count, but every physical core does, including cores deactivated in the BIOS, and each processor carries a minimum of 16 core licenses even when the CPU has fewer.
Storage comes with the bundle. VCF includes 1 TiB of vSAN capacity per core and VVF includes 0.25 TiB per core, with more sold as a capacity add-on. Terms run one, three or five years.
Broadcom does not publish list prices for VMware. Its fiscal year ends on the Sunday closest to October 31, so fiscal 2026 closes on November 1, 2026.
What has changed recently
- 2024
Perpetual licensing retired
Broadcom ends new perpetual license sales and support renewals on perpetual terms. Existing perpetual licenses keep their run rights, without new versions or support.
- 2024 to 2026
The catalog collapses into two bundles
Standalone products fold into VCF and VVF, and the license metric moves from processors to physical cores.
- Apr 2025
An order-level core minimum appears
Channel notices report a 72-core minimum per order alongside the 16-core per processor rule. Broadcom’s own licensing documentation still states the 16-core minimum, so it is worth confirming which applies on your quote.
What moves a VMware renewal
A VMware renewal is priced from a core count and a bundle, and both are decided before anyone discusses a discount.
BundleVCF or VVF, and the distance between them
CoresEvery physical core, with a 16-core floor per processor
TermOne, three or five years
StoragevSAN capacity included per core, then charged
Each of these changes what the business actually pays for the same estate. Knowing which one is moving the number is the starting point.
Where a VMware renewal gets expensive
Cores switched off still count
Physical cores deactivated in the BIOS are licensed all the same, so trimming cores in hardware settings does not reduce what is owed.
The bundle above the one you run
VCF carries networking, storage and automation that many estates never deploy. The distance between VCF and VVF is a commercial question, not a technical certainty.
No path back to perpetual
Existing perpetual licenses keep running, but new versions and support renewals stopped. Staying put carries a support and security cost that belongs in the comparison.
Deal IQ has an excellent process, and we completely trust them to find us savings.
A MODEL CHANGE, NOT A PRICE LIST
Broadcom changed the metric. That doesn’t make the quote arithmetic.
Subscription, per-core licensing and bundling all moved at once, which makes a renewal quote look like a calculation rather than a negotiation. The inputs are commercial: the bundle, the term, the cores in scope and what Broadcom will approve against them.
What well-prepared buyers do before a VMware renewal
Start 12 months out
VMware renewals involve core counts, bundle choice and alternatives. That takes longer than a standard renewal.
Count your cores first
Physical cores per host, with the 16-core floor applied, before the quote arrives.
Decide which bundle you actually run
Know which VCF components are deployed and which are not.
Understand your alternatives
Know what moving would cost and how long it would take, before you need the answer.
Know where you fall in Broadcom’s year
Broadcom’s fiscal year ends on the Sunday closest to October 31.
DEAL IQ ON VMWARE
We know how Broadcom decides.
Broadcom publishes the licensing rules but not the prices, and the quote arrives looking like arithmetic. Our network of 350+ former vendor sales, pricing and deal desk leaders includes people who sold VMware and know how those numbers are put together. We pair that with our own VMware pricing data and a 32-factor assessment on every deal, then negotiate directly with Broadcom or behind the scenes with your team.
Savings come from the price. Same products, same quantities, same scope.
DEAL IQ EXPERIENCE WITH VMWARE
50+VMware negotiations
$250M+in VMware contract value negotiated
350+former vendor sales, pricing and deal desk leaders in our expert network, including people who sold VMware
Frequently asked questions
What are VCF and VVF?
The two bundles VMware is now sold in. VMware Cloud Foundation is the full private cloud stack, including networking, storage and automation. vSphere Foundation is the compute-focused tier. Both are subscriptions licensed per core.
How does the 16-core minimum work?
Every processor in a licensed host is licensed for at least 16 cores, even if the CPU has fewer. A host with two 8-core CPUs is licensed as 32 cores, not 16.
Do cores disabled in the BIOS still count?
Yes. Broadcom’s licensing terms require every physical core on the server to be licensed, including cores deactivated in the BIOS.
Is there a 72-core minimum per order?
A 72-core order minimum was reported through the channel in April 2025. Broadcom’s own licensing documentation states the 16-core per processor minimum, so confirm which rule your quote has been built on.
Can we still buy perpetual VMware licenses?
No. Broadcom ended new perpetual sales and perpetual support renewals. Existing perpetual licenses keep running but do not receive new versions or support.
What subscription terms are available?
One, three and five years, with annual billing and co-terming available.
Is vSAN included?
A capacity entitlement is included per core: 1 TiB per core with VCF and 0.25 TiB per core with VVF. Capacity beyond that is bought as an add-on.
When does Broadcom’s fiscal year end?
On the Sunday closest to October 31. Fiscal 2026 ends November 1, 2026.
Is Broadcom’s “best and final” offer really final?
Best and final is a sales position, not a floor. It reflects what the account team expects you to accept, not the lowest price Broadcom will approve.
Do we have to shrink the estate to get a better price?
No. We negotiate the price of what you run. Hosts, cores and scope stay the same.
Has Deal IQ negotiated with VMware before?
Yes. More than 50 VMware negotiations covering $250M+ in VMware contract value, with a network that includes people who sold for VMware.
How does Deal IQ charge for a VMware negotiation?
No savings, no fee. We agree the starting price with you before we negotiate, and our fee is a share of the improvement against it.