Case study · VMware & licensing

VMware and Broadcom licensing transformation

Major UK enterprise

As Broadcom reshaped VMware licensing, a UK enterprise turned to C4C for independent audit, cost modelling and negotiation, avoiding a six figure increase.

Under 80%uplift, against up to 410% projected
6 figureannual increase avoided
1 yearrenewal secured, keeping options open

The challenge

Under Broadcom’s new per core subscription model, perpetual licences were withdrawn and early modelling showed annual renewal costs could rise by 80 to 410 percent.

The solution

C4C ran a comprehensive VMware audit covering compliance, entitlement, usage and commercial exposure, drawing on deep vendor side experience.

Delivered through our IDEAL framework, the disciplined method behind every C4C engagement.

  1. IdentifyAudited active cores, CPUs and entitlement gaps to establish the true licensing baseline, separating what was consumed from what was billed.
  2. DecideModelled renewal exposure under multiple Broadcom scenarios so the commercial choice was made on data, not on the vendor's first quote.
  3. ExecuteLed the negotiation with clear, data based cost models, challenging vendor assumptions rather than accepting them.
  4. AdoptBuilt optimisation planning and a hybrid roadmap so the estate stayed performant while alternatives were evaluated honestly.
  5. LifecycleSecured a one year renewal to keep options open and force a fresh review before the next cycle, rather than locking in.

The outcome

Independent analysis and negotiation support kept the client in control of its infrastructure strategy.

Why C4C Group

Unlike a traditional reseller, we act purely in the client’s interest. Our independence lets us challenge vendor assumptions and interpret complex licensing changes, and our experience across VMware, Dell and Broadcom turns uncertainty into savings.

Frequently asked questions

How much have VMware renewal costs risen under Broadcom?

It varies widely by estate. After Broadcom moved VMware to per core subscription and withdrew perpetual licences, modelled renewal increases of roughly 80 to 410 percent became common, driven by how cores are now counted and a 16 core per processor minimum. In this engagement, independent modelling and negotiation held the actual uplift well under 80 percent.

Can a Broadcom VMware renewal be negotiated?

Yes. The first quoted figure is rarely the floor. The leverage comes from an independent entitlement audit and a data based cost model that separate what you genuinely consume from what you are being billed for. With that evidence the renewal can be challenged on facts rather than accepted as fixed.

What is the 16 core per processor minimum?

Under the subscription model every populated processor is licensed at a minimum of 16 cores, even if the physical CPU has fewer. Estates running lower core count processors can end up paying for capacity they do not have, which is one of the main reasons renewal quotes jump.

Should we sign a long VMware renewal now or keep options open?

It depends on your exit readiness. Locking into a multi year term removes leverage if the commercial terms keep moving. Here a one year renewal preserved flexibility while alternatives were assessed, which is often the stronger position while the market is still settling.

Do we need a reseller or an independent adviser for a VMware renewal?

They are not the same. A reseller earns on the transaction, an independent adviser does not. Independence is what allows the vendor’s assumptions to be challenged and the alternatives to be evaluated honestly, which is where most of the saving on a Broadcom renewal actually comes from.

Facing something similar?

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