Broadcom ends Perpetual Licensing

Broadcom, following its acquisition of VMware, has announced significant changes to VMware’s product lineup and licensing model. The company is simplifying its portfolio and transitioning all VMware solutions to subscription licenses, ending the sale of perpetual licenses and related Support and Subscription renewals. This move, driven by customer and partner feedback, aims to streamline offerings and align with the industry’s shift towards subscription-based cloud consumption. VMware’s two primary offers, VMware Cloud Foundation and VMware vSphere Foundation, will now be more accessible, with reduced prices and enhanced support services. This transition reflects Broadcom’s strategy to enhance customer and partner success in digital transformation.

Q&A below copied from Broadcom’s official announcement link which can be found here

Q: What are the changes to perpetual licenses?

A: As part of our transition to subscription and a simplified portfolio, beginning today, we will no longer sell perpetual licenses. All offerings will continue to be available as subscriptions going forward. Additionally, we are ending the sale of Support and Subscription (SnS) renewals for perpetual offerings beginning today.

Q: Why make this change from perpetual licenses to subscription? 

A: This shift is the natural next step in our multi-year strategy to make it easier for customers to consume both our existing offerings and new innovations. VMware believes that a subscription model supports our customers with the innovation and flexibility they need as they undertake their digital transformations.

Q: Can customers continue to use their perpetual licenses?

A: Yes, customers can continue to use perpetual licenses that they’ve purchased for products.

Q: Can customers still purchase and add additional perpetual licenses after today?

A: After a customer’s effective date for the end of availability of perpetual licenses, customers will not be able to purchase new perpetual licenses. Customers will be able to purchase subscription software or term licenses to supplement or replace their current perpetual-licensed install base.

Q: Can customers renew their Service and Support (SnS) contracts after today?

A: No, customers cannot renew their SnS contracts for perpetual licensed products after today. Broadcom will work with customers to help them “trade in” their perpetual products in exchange for the new subscription products, with upgrade pricing incentives. Customers can contact their VMware account or partner representative to learn more.