In a subtle move that could have wide-reaching effects across IT labs and enterprise sandboxes, VMware has reintroduced a free version of its vSphere Hypervisor—just over a year after it abruptly pulled the plug on its no-cost option.
The update appeared with little fanfare, tucked away in the release notes for vSphere ESXi 8.0 Update 3e. There, a single line confirmed what many virtualization enthusiasts had been hoping for: the return of a free hypervisor, now available via Broadcom’s support portal. Although VMware has yet to release full details about what’s included in this edition, its quiet return is raising eyebrows for more than just its suddenness.
The timing is indicative. Broadcom’s purchase of VMware initiated broad license revisions early in 2024, ending perpetually licensed VMs in favor of multiyear subscriptions. The change drove off a large chunk of VMware’s core constituency, particularly smaller businesses, students, and developers, who had come to depend upon the free hypervisor for proof-of-concepts and experimentation over many years.
By reinstating the free ESXi edition, VMware appears to be softening that stance—perhaps recognizing that access to entry-level tools is not just a goodwill gesture but a strategic lever.
After all, when rivals like Nutanix and Platform9 offer free community versions and open-source alternatives remain plentiful, it’s risky to shut out the very users who often evolve into enterprise buyers.
Meanwhile, reports suggest Broadcom may also be walking back another unpopular decision—raising minimum core license thresholds. Sources indicate the requirement may revert to 16 cores instead of the proposed 72, possibly in response to partner pushback.
This all plays out as VMware’s Distributed Services Engine, which offloads network tasks to SmartNICs and DPUs, struggles to gain momentum beyond hyperscalers. Analysts say adoption remains mostly confined to cloud titans like AWS and Azure, though innovations like DPU-based switches may widen the market.
For now, VMware’s pivot seems less like a product update and more like a recalibration—one that acknowledges the value of community, competition, and accessibility in a shifting enterprise tech landscape.
