VMware Walks Back Controversial Licensing Change After Industry Backlash, Denies Official Announcement

VMware customers and partners were recently taken aback by reports of a significant licensing policy change: the minimum core requirement for VMware licenses was to increase from 16 to 72 cores per purchase order. This change, set to take effect on April 10, 2025, was communicated through distributor memos, notably from Arrow, and was perceived as a move that would disproportionately affect small and medium-sized businesses (SMBs) by forcing them to pay for more cores than they needed.

The backlash was swift and widespread. Industry professionals, especially those managing smaller infrastructures, voiced concerns over the increased costs and the potential need to seek alternative virtualization solutions. The uproar was particularly pronounced in Europe, where stringent data protection regulations make on-premises solutions like VMware more appealing. Trade groups and IT communities feared that the new licensing model would render VMware’s offerings less accessible to smaller clients.

In response to the mounting criticism, Broadcom, VMware’s parent company, reversed its decision. By April 10, 2025, reports emerged indicating that Broadcom had retracted the 72-core minimum requirement, opting to maintain the existing 16-core minimum per CPU. This reversal was confirmed by distributors and reflected in updated reseller price lists. Broadcom’s communication strategy, however, was notably opaque. When questioned, a company spokesperson stated that “Broadcom has never announced a price change,” suggesting that the initial 72-core requirement was never officially sanctioned.

This incident underscores the importance of transparent communication and the need for companies to consider the diverse needs of their customer base. While Broadcom’s initial move may have aimed to streamline operations and focus on larger clients, the swift reversal highlights the power of collective feedback and the necessity of balancing business objectives with customer needs.

For SMBs and other affected customers, the retention of the 16-core minimum offers a reprieve, allowing them to continue leveraging VMware’s solutions without incurring prohibitive costs. However, the episode serves as a reminder of the ever-evolving nature of software licensing and the need for vigilance and adaptability in navigating such changes.

As the industry continues to evolve, stakeholders must remain engaged, voicing concerns and collaborating to ensure that technological advancements and business strategies align with the broader needs of the community.