The VMware ecosystem has changed significantly over the last 18–24 months.
Changes to licensing models, SKU consolidation, and the move toward a more standardised platform approach have forced many organisations to re-evaluate their virtualisation strategy often under tight VMware renewal timelines.
For many customers, this has meant a shift toward VMware Cloud Foundation (VCF) as the primary supported option going forward.
At C4C Group, we help organisations approach this moment pragmatically optimising existing VMware environments, validating the real value of VCF, and negotiating renewals based on evidence rather than assumptions.
The current VMware landscape
Since the acquisition by Broadcom, VMware licensing and packaging has been simplified but also made more prescriptive.
In practice, many organisations have encountered:
- the removal of modular or lower-tier SKUs
- pressure to adopt bundled platforms such as VCF
- significant list price increases framed as structural change
- renewals presented as “fixed” or non-negotiable
None of this means VMware is no longer viable.
It does mean that renewals now require architectural and commercial scrutiny, not just procurement approval.
Why VMware Cloud Foundation can still deliver strong value
It’s important to separate platform capability from commercial execution.
When deployed intentionally and sized correctly, VMware Cloud Foundation offers:
- an integrated software-defined stack
- operational consistency across on-prem and hybrid environments
- improved lifecycle management and automation
- a solid foundation for private-cloud operating models
For organisations running enterprise workloads at scale, VCF can represent good long-term value if licensing and consumption reflect reality.
Cost issues typically arise when:
- historic over-provisioning is carried forward
- growth assumptions go unchallenged
- bundled capabilities are licensed but unused
- renewals inherit legacy architecture decisions
This is where optimisation becomes essential.
Optimising VMware environments before renewal
A VMware renewal should not start with pricing it should start with understanding the environment.
Before engaging commercially, we help organisations audit:
- real host, cluster, and workload utilisation
- entitlement versus actual consumption
- which VCF components are genuinely required
- architectural decisions that inflate licensing
- opportunities to right-size without increasing risk
This optimisation step alone often identifies material cost reduction before any negotiation begins.
Negotiating renewals from a position of evidence
C4C Group is not a VMware or Broadcom partner — by design.
Our independence allows us to act solely on behalf of the customer, combining vendor-side commercial experience with practical understanding of VMware estates.
Because we have worked on the vendor side, we understand:
- how VMware deals are now structured under Broadcom ownership
- where flexibility still exists, even when it appears limited
- which assumptions can be challenged constructively
- how to frame negotiations commercially rather than emotionally
In recent engagements, this approach has delivered significant reductions against initial renewal positions even within a more constrained licensing model.
The key is not confrontation, but clarity.
Considering alternatives: on-prem and public cloud
Renewal pressure often triggers conversations about exit — typically toward public cloud platforms such as Amazon Web Services or Microsoft Azure.
In theory, this can appear attractive.
In practice, the economics are frequently misunderstood.
When assessed properly, we often find:
- steady-state cloud costs exceed an optimised VCF environment
- networking, egress, and operational overheads are underestimated
- cloud introduces different forms of lock-in rather than removing it
- migration effort and business risk are underplayed
Cloud can be the right answer but only when evaluated with full lifecycle cost and risk, not as a reaction to renewal pressure.
For many workloads, a right-sized VCF platform remains the most economically and operationally sensible option.
Why independence matters
Because C4C Group is not incentivised by resale margin or partner targets, our role is straightforward:
- tell you when VCF makes sense
- tell you when it doesn’t
- help you optimise and negotiate when it does
- prevent historic waste being carried into a new licensing model
We don’t promote platforms.
We promote better decisions.
This approach aligns closely with our broader work in technology acquisition and vendor negotiation, where we help organisations optimise platforms before entering commercial discussions.
https://www.c4cgroup.co.uk/technology-acquisition/
Final thought
VMware Cloud Foundation isn’t the problem.
Unchallenged assumptions are.
Organisations that treat VMware renewals as a reset technical and commercial consistently achieve better outcomes than those that accept inherited positions.
If you’re approaching a VMware or VCF renewal, the most valuable step is to pause, optimise, and validate before you sign.
That’s where leverage still exists.
Discuss your upcoming VMware renewal
If you’re planning a VMware renewal, VCF transition, or facing licensing changes, now is the right time to assess your position.
C4C Group helps organisations optimise VMware environments, validate VCF value, and negotiate renewals with confidence, based on evidence and vendor-side insight.
Get in touch to discuss your upcoming renewal and how we can help.
or reach out at hello@c4cgroup.co.uk