Free ESXi Is Back! But What’s the Catch?

Broadcom quietly revives VMware’s free hypervisor, and the virtualization world takes notice.

In a quiet yet significant pivot, Broadcom has reinstated the free version of VMware ESXi, the widely used Type 1 hypervisor, just over a year after pulling the plug on it. The return was noted subtly in the release notes for vSphere 8.0 Update 3e, where it states:

“Broadcom makes available the VMware vSphere Hypervisor version 8, an entry-level hypervisor. You can download it free of charge from the Broadcom Support portal.”

This unexpected development reverses a controversial decision made in early 2024 when Broadcom, after acquiring VMware, eliminated the free ESXi offering as part of a broader transition toward subscription-based licensing and the retirement of perpetual licenses (source).

What’s Changed?

At the time, the decision to discontinue free ESXi sparked outcry from IT pros, hobbyists, educators, and small businesses who relied on the hypervisor for labs, testing, and training. Now, it appears Broadcom is attempting to throw a lifeline back to that community, though with a few caveats:

• You must register on Broadcom’s support portal to download it.
• The announcement lacks transparency around specific features, support, and any usage limitations.
• Licensing terms and integration with newer VMware technologies remain unclear.

This version of free ESXi is based on the latest 8.0 codebase, suggesting it’s not a legacy bone thrown to the community, but a potentially viable tool for home labs and testing environments.

Implications for Existing and New Customers

For existing customers, especially those previously relying on the free ESXi to support edge, lab, or secondary environments, this is a much-needed reprieve. However, it doesn’t change the broader reality: Broadcom’s direction for VMware is still heavily enterprise-focused, with subscription models at the core. Free ESXi is unlikely to be useful at scale or as a production-grade solution.

For new customers and developers, the return of a no-cost hypervisor provides a safe, legal way to explore VMware’s tech stack. It may even be seen as a tactical move to compete with community-friendly platforms like Proxmox, XCP-ng, or Nutanix’s Community Edition.

However, the lack of fanfare and missing details raise a fair question: Is this a permanent reinstatement or just a token gesture to calm criticism?

Strategic Considerations

Broadcom’s return of free ESXi might reflect:

• Pressure from the open-source virtualization ecosystem eating into VMware’s grassroots adoption.
• Developer advocacy for maintaining access to test environments.
• A strategic funnel to onboard new users who may eventually convert into paying customers.

It’s a classic “freemium” play, but one that, if not clearly communicated, risks confusing and frustrating the very user base it’s meant to support.

The Bottom Line

Free ESXi is back, but users should temper expectations. It may be less a restoration of VMware’s community ethos and more a breadcrumb from Broadcom’s enterprise table. For now, it’s a win for home labs and training setups, but the virtualization crowd will be watching closely for the fine print.