A Survival Guide for UK Businesses
Are you a UK business navigating the recent Broadcom acquisition of VMware? You’re not alone. Many businesses face challenges from new VMware licensing requirements, subscription transitions, and rising renewal costs. At C4C Group, we specialise in helping UK SMEs effectively manage VMware licensing changes and optimise their IT infrastructure.
Understanding the VMware Licensing Changes Broadcom acquired VMware in December 2023, marking a significant shift from perpetual licenses to subscription-based models. One critical change is the increase in minimum core licensing requirements from 16 to 72 cores. This shift impacts costs significantly even smaller servers with 8 cores now face 72-core licensing fees. Some businesses report renewal price hikes up to 450%, plus a 20% penalty for late renewals, creating financial pressure and operational complexity.
How UK Businesses Can Mitigate VMware Licensing Costs
Comprehensive VMware Licensing Audit
Conducting a thorough audit of your VMware environment is essential. Identify unnecessary licenses and unused features to eliminate excess spending. An effective audit can significantly reduce your IT budget and simplify operations. At C4C Group, comprehensive VMware audits form the foundation of our cost-saving strategies.
Develop a Tailored VMware Licensing Strategy
Decide whether a VMware subscription is right for your business or if exploring alternative solutions makes more sense. Create a strategic roadmap aligned with your budget, operational needs, and subscription timelines. Our team at C4C Group helps you develop customised strategies to keep your IT systems efficient and cost-effective.
Effective Negotiation with Broadcom
Broadcom is open to negotiations regarding pricing and terms, especially for existing perpetual license holders. Engage experienced negotiators to secure discounts, flexible terms, or beneficial trade-in deals. C4C Group’s negotiation expertise can maximise your licensing investment and help you achieve significant savings.
Explore VMware Alternatives
Now is an excellent time to consider VMware alternatives. Solutions such as Proxmox, Microsoft Hyper-V, Red Hat Virtualisation, and Nutanix offer lower costs and increased flexibility. Open-source platforms like Proxmox provide scalable, cost-effective solutions free from restrictive licensing constraints. Our expert team can guide you smoothly through migration to these alternatives.
Utilise Third-Party VMware Support
If Broadcom’s direct support proves inadequate or costly, third-party providers like Rimini Street or Spinnaker Support offer affordable maintenance options for existing VMware licenses. Leveraging third-party support can extend the lifespan of your current investments and reduce overall expenses.
Stay Prepared for Compliance Audits
Broadcom intends to increase compliance audits. Maintain detailed, accurate records of your VMware licenses and usage to avoid penalties. C4C Group provides tools and strategies to ensure your business remains audit-ready, protecting you from unexpected costs.
Why This Matters for UK businesses
These licensing changes particularly affect SMEs, education, and healthcare sectors, where budgets are tight. Proactive management turns potential financial strain into an opportunity to optimise IT spending and infrastructure efficiency.
Partner with C4C Group for VMware Licensing Solutions
C4C Group is your trusted UK-based partner, offering expertise in VMware audits, strategy planning, negotiation, migration, and ongoing support. Our experienced team ensures clarity, compliance, and cost-efficiency in your IT operations.
Ready to optimise your VMware licensing?
Contact C4C Group today we’re here to help your business succeed.