VMware users are raising their voices over Broadcom’s licensing changes, which have forced them into three-year commitments for vSphere license renewals. After Broadcom acquired VMware in late 2023, it introduced a “simplified” licensing structure that many interpret as a recipe for skyrocketing costs and reduced flexibility.

The company scrapped perpetual licenses and standalone support options, replacing them with bundled, per-core subscriptions. This shift has already driven major clients like Geico and John Deere away, and smaller businesses now feel the pinch. Many relied on annual license renewals to manage budgets but now face mandatory multi-year agreements that critics describe as heavy-handed.

Reddit user “bschmidt25” detailed how these policies have wreaked havoc on financial planning. “We do annual renewals because that’s how our budget works. Last year, the renewal jumped 70%. Now, they demand three years upfront, and the VMware Cloud Foundation numbers are nearly three times higher.”

Industry experts believe Broadcom deliberately locked customers into longer terms, hoping to secure revenue from businesses planning to migrate away. Analyst firm Gartner cautions that moving off VMware’s platforms involves steep costs and logistical hurdles, especially for large enterprises that depend on VMware’s management, storage, and network tools.

Broadcom claims its contracts reflect customer needs. Despite these assurances, many users feel the promised “flexibility” exists only on paper. If customers begin acting on their frustrations, VMware risks losing even more ground as competitors step in to offer viable alternatives.