Minimising Broadcom Licensing Impact Through Independent Insight
When Broadcom restructured VMware’s licensing model, many enterprises faced steep, unpredictable cost increases — in some cases rising by over 400%.
A major UK enterprise operating a large-scale VMware environment turned to C4C Group for independent expertise in licensing audit, cost modelling, and negotiation support.
C4C’s goal: to protect the client from extreme renewal uplifts while building a sustainable virtualisation strategy for the future.
The Challenge
The client operated a distributed VMware estate spanning across multiple data centres. Under Broadcom’s new per-core subscription model, perpetual licences were withdrawn, forcing migration to subscription-based terms.
Initial modelling indicated annual renewal costs could jump by 80% to 410%, depending on Broadcom’s interpretation of entitlement and SKU changes.
The key challenges were:
- Understanding how Broadcom’s 16-core minimum rule affected their licensing baseline.
- Validating entitlement vs. actual deployment to avoid inflated renewal costs.
- Negotiating renewal terms amid limited transparency and shifting SKUs.
- Preserving performance, resilience, and compliance while evaluating exit paths to other platforms.
The Solution
C4C Group conducted a comprehensive VMware audit covering compliance, entitlement, usage, and commercial exposure.
Leveraging deep vendor-side experience, the team applied a structured advisory approach:
- Licensing Audit: Analysed active cores, CPUs, and entitlement gaps to define the true baseline
- Commercial Modelling: Forecasted renewal exposure under multiple Broadcom scenarios, highlighting potential uplifts from 80% to over 410%.
- Negotiation Strategy: Equipped the client with clear, data-backed cost models to challenge Broadcom’s proposed pricing and historic entitlement anchoring.
- Optimisation Planning: Identified opportunities for consolidation and right-sizing, while ensuring these steps wouldn’t negatively affect renewal leverage.
- Future Platform Evaluation: Outlined a hybrid roadmap to evaluate Nutanix, open virtualisation and cloud based alternatives.
The Outcome
Through C4C’s independent analysis and negotiation support, the client:
✅ Kept renewal uplifts to a minimum, far below Broadcom’s projected increases (well under 80%).
✅ Retained flexibility by securing a 1-year renewal rather than a long-term lock-in.
✅ Optimised entitlement alignment, ensuring licensing was based on actual usage rather than legacy commitments.
✅ Improved cost predictability and transparency for future renewal cycles.
✅ Built a strategic roadmap to explore hybrid and alternative virtualisation platforms.
The result: the organisation avoided a potential six-figure annual cost increase and maintained control over its infrastructure strategy proving that data and independence are the strongest negotiation tools.
Why C4C Group
Unlike traditional resellers, C4C Group acts purely in the client’s interest.
Our independence allows us to challenge vendor assumptions, interpret complex licensing changes, and negotiate from a position of clarity and evidence.
With deep experience across VMware, Dell, and Broadcom ecosystems, C4C brings the inside knowledge and technical depth needed to translate uncertainty into savings and strategy.
“We help clients cut through the noise, model the reality, and negotiate based on truth — not fear.”
Key Results
| Metric | Result |
|---|---|
| Potential Uplift | 80%–410% |
| Actual Renewal Uplift | Significantly Below Market Average |
| Licence Cost Exposure | ↓ Substantially Reduced |
| Renewal Flexibility | 1-Year Term Secured |
| Strategic Readiness | Hybrid Platform Roadmap Established |
Next Steps
Facing Broadcom’s VMware licensing changes?
C4C Group can help you understand your exposure, protect your cost base, and future-proof your infrastructure strategy.
📧 hello@c4cgroup.co.uk
🌐 www.c4cgroup.co.uk
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