Updated Oct 2026. This guide was first published in June 2023, when VMware still sold perpetual licenses. It has been rewritten to reflect Broadcom's licensing changes, current support dates and BTI's advice today.
If you run your servers on VMware vSphere, the licensing question has changed. A few years ago the choice was perpetual or subscription. Today, VMware by Broadcom sells subscriptions only, and the real question is what to do at your next renewal date. This guide explains both license types in plain terms, what Broadcom changed and when, what happens to a perpetual license when its support runs out, and how to plan your next step.
The short answer. A perpetual license let you use a specific VMware version for as long as you liked, with support and updates bought separately each year through Support and Subscription (SnS). A subscription gives you the right to use the software, with support and updates included, only for the term you pay for. On December 11, 2023, Broadcom ended the sale of new perpetual licenses and of SnS renewals for perpetual offerings (Broadcom, December 11, 2023). Licenses you already own keep working, but without active support you lose access to patches and to Broadcom support.
Perpetual vs subscription licensing at a glance
| Perpetual license (no longer sold) | Subscription license (how VMware is sold today) | |
|---|---|---|
| What you buy | The right to use a specific version with no end date | The right to use the software for a set term |
| Support and updates | A separate SnS contract, renewed each year | Included for the length of the term |
| If you stop paying | The software keeps running at the version you own, with no new patches and no support requests | The right to use the software ends with the term |
| Major version upgrades | Needed active SnS | Included during the term |
| How capacity is counted | Per physical CPU under the older VMware model | Per physical CPU core, with a minimum of 16 cores per CPU (Broadcom KB 313548) |
| Can you still buy it? | No, and SnS renewals for perpetual offerings are no longer sold | Yes, as VMware Cloud Foundation, VMware vSphere Foundation and smaller editions |
What a perpetual license was, and what it means now
With a perpetual license you paid once and owned the right to run that version indefinitely, much like buying equipment outright. Support was a separate annual contract. SnS gave you technical support, patches and the right to upgrade to newer versions, but it never changed the license itself.
That separation matters today. Broadcom's own knowledge base explains that when SnS on a perpetual license expires, ESXi hosts and vCenter Server keep running, virtual machines stay powered on and the features of your edition stay unlocked. What you lose is access to the Broadcom Support Portal for new patches and security updates, and the ability to open a support request. Broadcom also advises against adding new ESXi hosts or attempting major version upgrades during the gap, because those require active SnS for license conversion (Broadcom KB 429208).
In other words, a perpetual license does not stop working. It stops being supported, and over time an unpatched hypervisor becomes a security and compliance problem.
What subscription licensing means under Broadcom
A subscription is closer to a lease. You pay for a term, and support and updates are included while the term is active. When the term ends, so does the right to use the software, unless you renew.
Broadcom completed its acquisition of VMware on November 22, 2023 (Broadcom, November 22, 2023). Less than three weeks later it announced that every VMware product would be sold only as a subscription or term license, and that it was simplifying the product lineup (Broadcom, December 11, 2023). VMware's follow-up post named VMware Cloud Foundation (VCF) and VMware vSphere Foundation (VVF) as the two main offers, with many products now available only inside those bundles rather than on their own (VMware Cloud Foundation blog, January 22, 2024).
Subscriptions are counted per physical CPU core on every ESXi host, with a minimum of 16 cores per CPU, even if a processor has fewer cores (Broadcom KB 313548). For a small business with older, lower-core servers, that minimum is worth checking against your own hardware before you look at a quote.
BTI does not quote VMware prices in this guide. Your own renewal quote is the most reliable picture of what these changes mean for you.
Timeline: what changed and when
- November 22, 2023. Broadcom completes its acquisition of VMware (Broadcom).
- December 11, 2023. Broadcom announces subscription-only licensing, ending the sale of perpetual licenses and of SnS renewals for perpetual offerings, with effective dates that vary (Broadcom).
- January 22, 2024. VMware confirms the end of availability of perpetual licensing and the move to VCF and VVF (VMware blog).
- April 2024. After European CIO groups complained to the European Commission, Broadcom said it had extended support for many perpetual license customers and would offer free zero-day security patches for supported vSphere versions (Ars Technica, April 17, 2024).
- July 1, 2024. Broadcom's end-user computing division, which includes VMware Horizon, becomes Omnissa, an independent company owned by KKR (Business Wire, July 1, 2024).
- September 2025. Broadcom says it is reducing the number of authorized VMware Cloud Service Provider partners in most markets (Broadcom, September 22, 2025).
- October 2, 2025. End of general support for vSphere 7 (ESXi 7.x, vCenter 7.x and vSAN 7.x), after a six-month extension from April 2, 2025 (Broadcom KB 415405).
- October 11, 2027. End of general support for vSphere 8 (ESXi 8.x, vCenter 8.x and vSAN 8.x) (Broadcom KB 459135).
Perpetual or subscription: which is better now?
For a new purchase, there is no longer a choice to make: VMware is sold by subscription only. For an existing environment, the decision is between renewing a VMware subscription and moving your workloads to another platform.
BTI's advice to small and mid-sized businesses is to plan a move off VMware rather than renew. In 2025 Broadcom ended our VMware partnership, along with those of most managed service providers, and we have watched what the licensing and support changes mean for the businesses we support. Customers and industry groups have objected publicly to price increases and to the handling of perpetual license support (Ars Technica, April 17, 2024). For most smaller environments, the destinations we use most often, Microsoft Hyper-V and Microsoft Azure, are a better long-term fit.
There is no need to rush a move. A planned migration, started well before your renewal date, is safer and easier to budget than a rushed one.
Your VMware renewal decision timeline
Work back from the earlier of two dates: your next VMware renewal date, or the end of general support for the vSphere version you run.
- 12 months or more before. Find your contracts and dates. List every license, whether it is perpetual or subscription, and when SnS or the subscription ends. Export the vCenter inventory of hosts and virtual machines.
- About 9 months before. Choose a destination for each workload: Hyper-V on your own servers, Azure, or hardware hosted in BTI's Phoenix office inside the Iron Mountain AZP-1 facility. Use your renewal quote as the budget baseline for the move.
- About 6 months before. Build the new platform and move a few low-risk virtual machines as a pilot. Test them with the people who use them.
- About 3 months before. Move production in planned batches, with a rollback step for each batch and a test restore from backup after each one.
- By the renewal date. Retire the old VMware hosts and licenses. If the move cannot finish in time, talk to us early about how to cover the gap safely.
Throughout the move, keep ESXi and vCenter patched. Several VMware flaws have been exploited by attackers, including three ESXi vulnerabilities that CISA added to its Known Exploited Vulnerabilities catalog on March 4, 2025 (CISA, March 4, 2025). BTI's managed patching and vulnerability management covers ESXi and vCenter during a move, then the new platform after it.
Where to go from VMware
- Hyper-V on your own servers. Hyper-V is Microsoft's hypervisor, built into Windows Server (Microsoft Learn). For Windows-heavy businesses it keeps servers on premises, with host patching folded into the Windows Server updates your team already runs.
- Microsoft Azure. Microsoft's Azure Migrate service can replicate VMware virtual machines to Azure and run a test migration before the final cutover (Microsoft Learn).
- Hosted hardware in Phoenix. Servers you supply or buy through BTI, hosted in BTI's Phoenix office inside the Iron Mountain AZP-1 facility, which Iron Mountain describes as built to Tier III standards.
BTI is a Microsoft Partner, and Hyper-V and Azure are the moves we deliver most often. For the full comparison of destinations and how a move runs, see our guide to planning a VMware migration to Hyper-V, Azure or hosted hardware in Phoenix.
Using VMware Horizon for virtual desktops? Horizon is now sold by Omnissa, not Broadcom, but on-premises Horizon desktops usually run on vSphere hosts, so your vSphere licensing still matters. Microsoft's Azure Virtual Desktop and Windows 365 are the Horizon alternatives we are asked about most.
Plan your next VMware renewal with BTI
Bring your renewal quote and your vCenter inventory. On a free consultation, BTI reviews your licenses and support dates, recommends a destination for each workload and shows the cost of the move against your renewal.
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VMware licensing FAQ
Can you still buy a VMware perpetual license?
No. Broadcom ended the sale of perpetual licenses on December 11, 2023, with effective dates that varied by product. VMware products are now sold only as subscriptions or term licenses.
Does a VMware perpetual license stop working when support expires?
No. According to Broadcom, ESXi hosts and vCenter Server keep running and your edition's features stay unlocked after SnS expires. You lose access to new patches, security updates and Broadcom support, and you should not add hosts or attempt major version upgrades without active SnS.
Can I renew Support and Subscription (SnS) on my perpetual licenses?
Broadcom ended the sale of SnS renewals for perpetual offerings in its December 11, 2023 announcement, while honoring existing contracts. In 2024 it said it had extended support for many perpetual license customers. Check the end date of your current SnS contract, because that is the date your patch access ends.
How is VMware subscription licensing counted?
Per physical CPU core on each ESXi host, with a minimum of 16 cores per CPU. A server with two 8-core processors is counted as 32 cores.
When does support end for vSphere 7 and vSphere 8?
General support for vSphere 7 ended on October 2, 2025. General support for vSphere 8 ends on October 11, 2027, according to Broadcom.
Is VMware Horizon still part of VMware?
No. Horizon moved to Omnissa, an independent company owned by KKR, on July 1, 2024. On-premises Horizon desktops often still run on VMware vSphere, so vSphere licensing can still affect a Horizon environment.
Should we renew VMware or move to another platform?
BTI's advice to small and mid-sized businesses is to plan a move off VMware rather than renew, starting well before the renewal date. Hyper-V and Azure are the destinations we use most often, with hosted hardware in Phoenix as a third option.
Can BTI keep our VMware environment patched while we move?
Yes. BTI's managed patching covers ESXi and vCenter during a move, and the new platform after it.
Sources are linked in each section. Broadcom product names, dates and licensing terms change; check your own contract and quote for the terms that apply to you.
