VMware Licensing Changes 2025: What IT Teams Need to Know

Over a year ago, we provided the first update from Broadcom and VMware regarding licensing changes. Well, beginning April 10, 2025, Broadcom rolled out additional, major changes to VMware’s licensing model — and it’s causing a stir in the IT world.

Here’s the quick rundown:

• Minimum Core Licensing Jumps from 16 to 72 Even if your server only uses 8 or 16 cores, you now have to license 72. That’s a big cost jump for SMBs and edge deployments.
• Late Renewals Now Come with a 20% Penalty Miss your renewal window? You’ll pay 20% more for your subscription when you come back.

These changes could have a serious impact on budgets, especially for smaller environments and SMBs. Many IT teams are now reassessing their strategy — from rightsizing deployments to exploring alternative platforms like Hyper-V, Nutanix or Proxmox.

How ServerMonkey Can Help

At ServerMonkey, we’re already helping customers make sense of these shifts. Here’s how we can support you:

✔️ Break down what these changes mean for your environment

✔️ Explore cost-saving alternatives or hybrid strategies

✔️ Supply high-quality refurbished Dell & HPE servers to help offset costs

✔️ Offer third-party support with TekShield to extend hardware ROI

As a VMware partner, we can help you move forward confidently — whether that means adapting to the new model or pivoting to something more flexible.