Navigating VMware Licensing Changes: Why IT Leaders Are Choosing Oracle Cloud

When Broadcom acquired VMware in late 2023, it promised simplification. What customers got was a licensing revolution: perpetual licenses are gone, core-based subscriptions are mandatory, SKUs have been consolidated into expensive bundles, and support is restricted if you’ve let your contract lapse. Some early adopters have seen VMware bills surge up to 500–1,500%, while others face audits and forced renewals they never signed up for.

Some customer groups have lodged legal appeals, claiming that Broadcom’s contracts are anti-competitive, unfairly hike prices up to tenfold, and exclude smaller cloud providers via an invite-only partner program. For those holding old perpetual licenses without support, patch access is now blocked for up to 90 days, exposing critical systems to risk.

Oracle Cloud VMware Solution (OCVS) on OCI

To provide stability and immediate relief, Oracle Cloud VMware Solution (OCVS) lets you lift and shift VMware workloads onto Oracle Cloud Infrastructure (OCI), bare‑metal SDDCs, where pricing is locked in, administrative control stays with you, and support isn’t dangling by a contract renewal.

Reports from CTO Advisor highlight that Oracle offers the market’s most consistent VMware experience, closest to on‑prem, while retaining complete customer control.

Here are the possible options to consider:

• Option 1: Move to OCVS with a 2-year license lock-in.
• Option 2: Migrate the VMs to native OCI compute.
• Option 3: If the current OCPU pricing cannot be matched, consider moving to Bare Metal and exploring a transition from VMware to OLVM.
• Option 4: If the preference is to remain on-premises, the options are to use either Private Cloud Appliance (PCA) or Compute@Customer.

Why OCI + OCVS Wins

Use Case Reflecting Real Trends

Consider a mid‑sized public sector organization experiencing 400–600% license renewal hikes under Broadcom’s new VMware model. They pivoted to OCVS via Oracle Cloud, gained pricing locked in, and maintained operational control while they evaluated longer-term modernization (e.g., to Oracle Linux KVM). Working with DSP-Eclipsys, we conducted architecture reviews, cost modeling, and migration readiness assessments to stabilize the environment and plan strategically.

Contact DSP-DSPEclipsys for Roadmap Support

DSP-Eclipsys can help you map your VMware footprint, model future costs, and align your environment with platforms like OCVS (and beyond). Contact us for a tailored VMware Impact Assessment—and sidestep Broadcom’s licensing traps.