Broadcom’s VMware Licensing Has Changed—Here’s What You Need to Know in 2025

In May 2025, Broadcom introduced significant changes to VMware Cloud Foundation (VCF) licensing that affect how organizations license, report on, and deploy their VMware environments.

Broadcom’s May updates to VMware Cloud Foundation (VCF) licensing mark a significant departure from legacy models—and introduce a new set of compliance and operational requirements that organizations can’t afford to overlook.

Whether you’re managing software licenses in-house or across hybrid environments, these changes bring new rules around how VMware is licensed, deployed, and reported. A new mandatory compliance reporting schedule, a shift to per-core licensing with strict minimums, reduced flexibility in hosting and portability, and the phasing out of perpetual licenses are just the start.

In this article, we’ll break down the most important changes, outline the risks of inaction, and explain how Anglepoint helps clients navigate Broadcom’s evolving licensing landscape with clarity and control.

Compliance Reporting Is Now Required

Broadcom’s May 2025 Specific Program Documentation (SPD) introduces a major shift in VMware license compliance. Organizations using VMware Cloud Foundation (VCF) must now submit a verified compliance report every 180 days. Missing the deadline triggers a 270-day countdown before Broadcom begins restricting platform functionality—starting with blocked access to the VCF management plane.

This update marks a clear move toward stricter oversight of VMware usage and licensing. Staying ahead of reporting requirements is now essential to avoid service disruptions.

VMware Licensing Moves to Per-Core Model

One of the most impactful changes Broadcom made at the end of 2023 was introducing a new per-core subscription model, replacing the traditional perpetual, CPU-based licensing. This shift included the launch of two bundled offerings: VMware Cloud Foundation (VCF) and VMware vSphere Foundation (VVF). While the individual components of these bundles existed previously, Broadcom repackaged them under these new names, made them available only as per-core subscriptions, and discontinued standalone and perpetual license options. VCF includes 1 TiB of vSAN entitlement per core, while VVF includes 0.25 TiB—both only usable within vSAN-enabled vSphere deployments.

In addition, key VMware management tools, including vCenter, vRealize Operations, and VMware Automation, are now restricted for use exclusively within VCF environments. Cloud usage is limited to approved Managed-as-a-Service (MaaS) platforms, such as:

• Azure VMware Solution
• Google Cloud VMware Engine
• Oracle Cloud VMware Solution

Perpetual VMware licenses are now capped at version 5.x. Any organization looking to upgrade must transition to the subscription-based VMware model, adding urgency for businesses relying on older software licensing agreements. Mixed environments using both perpetual and subscription licenses face added complexity and risk when it comes to VMware license tracking and optimization.

Hosting and Portability Restrictions

Broadcom’s updated terms also limit flexibility around VMware workload portability. Under the new model, the full VCF stack must be moved together—partial portability is no longer permitted. Additionally, VMware hosting rights are now allowed only for internally developed applications and only under strict guidelines. These restrictions may affect organizations operating in hybrid or distributed environments, where the ability to move individual components previously offered cost and operational benefits.

The Risks of Inaction

Failing to address these changes quickly can lead to costly consequences. Missing a compliance report may result in lost access to VMware’s management tools. Legacy licenses won’t support upgrades to future versions, and expanding vSAN storage now requires close monitoring of entitlement thresholds.

For organizations scaling infrastructure or operating in mixed-license environments, the risk of overspending—or falling out of compliance—is high.

Navigating Broadcom’s VMware Licensing with Anglepoint

These changes underscore a fundamental shift in how VMware is licensed, reported, and used. At Anglepoint, we work directly with clients to interpret Broadcom’s evolving terms, ensure VMware compliance reporting is timely and accurate, and build proactive strategies for VMware license management and optimization.

Whether you need to assess your current VMware software licensing position, plan for a move to subscription, or audit your vSAN usage, our team can help you make informed, strategic decisions.

Don’t wait until access is restricted or unexpected costs appear. Get ahead of Broadcom’s VMware changes with expert guidance and a proven framework for staying compliant and in control.