Since Broadcom’s acquisition of VMware in late 2023, the virtualization landscape has been anything but stable. For MSPs and IT teams, the past year has brought a series of abrupt changes, reversals, and uncertainty, making it clear that relying on a single vendor can be risky business.
A quick recap: last year’s upheaval
As we explored in our blog post last year, after Broadcom’s $69 billion takeover, VMware’s world changed overnight. The company:
- Ended its popular Partner Connect Program, moving to an invitation-only model
- Dropped perpetual licenses in favor of subscriptions
- Discontinued the free ESXi hypervisor, a favorite for labs and small deployments
- Bundled products and shifted pricing, often to the detriment of smaller customers
These moves left many MSPs and smaller organizations scrambling for alternatives and rethinking their virtualization strategies.
April 2025: The 72-Core minimum – and the swift reversal
At the end of March, Broadcom announced a dramatic new licensing rule: the minimum number of cores required for VMware licenses would jump from 16 to 72 per command line. This meant that even a small server with just 8 cores would need to be licensed for 72, massively increasing costs for small deployments.
The community and stakeholders’ backlash was immediate and intense. Customers, partners, and industry voices made it clear that this change would price out many loyal users and drive them to competitors.
In response, Broadcom quickly reversed the decision, restoring the previous 16-core minimum. While this is a relief for now, the episode highlights just how quickly licensing terms can change—and how little control customers have over these decisions.
the free ESXi hypervisor returns, but with limits
In another surprising twist, Broadcom also announced the return of the free ESXi hypervisor with the release of ESXi 8.0 Update 3e. This move is a response to mounting pressure from the community and the growing popularity of alternative platforms.
The free version comes with familiar limitations: no vCenter integration, a cap of 8 vCPUs per VM, and no enterprise support. Still, it’s a welcome option for labs, training, and small environments, and it helps keep VMware in the conversation for new users and future professionals.
what does this mean for MSPs and IT teams?
The rapid changes—and reversals—at VMware are a clear signal: when you depend on a single vendor, you’re at the mercy of their business decisions. Even if a controversial policy is rolled back today, there’s no guarantee it won’t return tomorrow.
why control matters
- Predictability: Frequent licensing changes make budgeting and planning difficult.
- Flexibility: Alternatives like Proxmox VE, Microsoft Hyper-V, and others offer robust features without vendor lock-in.
- Resilience: Diversifying your virtualization stack reduces risk if a vendor’s terms become unfavorable.
At Ynvolve, we strongly believe in brand-agnostic solutions, so we would recommend exploring alternatives so you don’t depend on a single company that can significantly raise prices overnight.
alternatives to VMware: take back control
As we highlighted in our top 3 alternatives to VMware article, there are strong alternatives to VMware that put you back in the driver’s seat. Here is an overview of our top 3 choices and how they compare each other and to VMware vSAN :
conclusion: stay agile, stay in control
Broadcom’s recent U-turn on the 72-core minimum is a win for the community—but it’s also a warning. The power to change the rules remains with the vendor, not the customer. For MSPs and IT leaders, now is the time to evaluate your options, diversify your virtualization platforms, and ensure you’re never caught off guard by sudden policy shifts. We understand decision fatigue is lurking around the corner, but we encourage each and everyone of you to stay educated as vendor lock-in might prove harder to overcome as you scale up.
The best way to future-proof your infrastructure? Stay informed, stay flexible, keep control firmly in your hands, and don’t hesitate to get in touch with us for any advice or infrastructure needs!
