When Broadcom acquired VMware in late 2023, most IT leaders expected some changes. What they got instead was a wholesale restructuring of VMware’s pricing, licensing, and product availability leading to double and triple-digit cost increases for thousands of organizations across the U.S.
Fast forward to 2025, and the shock has turned into ongoing operational pain.
Contracts are now cycling up for renewal under Broadcom’s new model, and companies are discovering that the tools they’ve relied on for years suddenly come with dramatically higher costs and far fewer options.
Healthcare systems, financial organizations, SaaS companies, and mid-market IT teams are feeling the impact most acutely — because virtualization isn’t optional for them. It’s the backbone of their infrastructure.
Here’s what’s happening, why it matters, and how SmartBase Solutions is helping organizations transition without compromising security, performance, or compliance.
What Actually Changed After the Broadcom Acquisition?
Broadcom didn’t just raise prices — they fundamentally changed how VMware can be purchased and used. The biggest shifts include:
1. Perpetual licenses were discontinued
Organizations can no longer buy one-time licenses. VMware is now subscription-only, often with higher baselines and narrower bundles.
2. Bundles replaced individual products
Popular standalone products (like vSphere Essentials or Horizon SKUs) were rolled into larger bundles, forcing customers to pay for features they may not need.
3. Pricing jumped dramatically
Across IT forums, Reddit threads, and industry analyses, companies report:
- 100–300 percent increases in licensing costs
- Mandatory migration to higher-cost editions
- Renewal quotes that exceed entire prior infrastructure budgets
One IT director summarized it bluntly on Reddit’s r/vmware:
“Our renewal went up 250 percent. Nothing changed except the name on the contract.”
4. Smaller and mid-market organizations were hit hardest
Enterprises can absorb price shocks.
Mid-sized IT teams cannot — and many are now searching urgently for alternatives.
Why the VMware Price Hike Matters for Regulated Industries
Healthcare, finance, and other high-security sectors rely on VMware for stability, isolation, and uptime. But Broadcom’s changes create several new challenges:
Predictability is gone.
Budgeting for infrastructure is now harder, especially for organizations required to maintain three-year forecasting models or to justify capital expenditure to boards and compliance teams.
Compliance complexity increases.
HITRUST, SOC 2, HIPAA, and cyber insurance requirements demand clear documentation, repeatability, and control. Licensing uncertainty makes planning infrastructure audits more difficult.
Talent shortages make transitions risky.
Many internal IT teams are already overextended. Re-architecting virtualized environments is not something they can absorb quickly or safely.
Cybersecurity risk rises when renewals stall.
If organizations hesitate or delay upgrades due to price spikes, they may fall behind on critical patches — something ransomware groups actively exploit.
What Companies Are Doing Instead of Absorbing the Cost
Across Reddit, LinkedIn, and industry blogs, the trend is clear: Organizations are actively exiting VMware or reducing their dependency.
Common alternatives include:
- Private cloud hosting providers
- Managed virtualization platforms built on Proxmox, Nutanix, or Hyper-V
- Hybrid or multi-cloud architectures
- Fully managed compute environments from specialized IT providers
But transitioning virtualization is not simple — especially for regulated industries.
This is where SmartBase Solutions plays a uniquely valuable role.
How SmartBase Solutions Helps Organizations Reduce VMware-Driven Costs Without Sacrificing Security
SmartBase works with healthcare, finance, and high-security organizations who must maintain strict uptime, compliance, and audit readiness regardless of what VMware or Broadcom decides.
Here’s how we support organizations navigating the price surge:
Private Cloud Hosting That Absorbs VMware’s New Licensing Costs
We operate secure, high-availability private cloud environments built for:
- Healthcare
- Finance
- SaaS
- High-security regulated industries
Our platform provides the stability businesses expect from VMware, but without Broadcom’s inflated pricing or restrictive licensing bundles. Let us worry about the VMware changes, allowing you to focus on keeping your teams efficient, your customers happy, and growing your business.
Clients often save 30–60 percent compared to renewed VMware contracts.
Managed Migrations that Reduce Risk and Downtime
Moving away from VMware can feel overwhelming.
Our team handles:
- Architecture planning
- Secure migration
- System validation
- Compliance documentation
- Backup and disaster recovery alignment
- Ongoing management and monitoring
We transition organizations without downtime, without gaps in security, and without forcing internal teams to absorb additional workload. The SmartBase Private Cloud utilizes VMware, greatly simplifying your transition.
A Predictable Cost Model — No Surprise Increases
SmartBase uses flat-rate, predictable pricing designed for long-term planning — essential for CFOs, CIOs, compliance teams, and audit cycles.
Instead of unexpected triple-digit increases, clients know exactly what they will pay each year.
HITRUST-Certified Environments for Healthcare and Finance
For organizations in regulated industries, we don’t just migrate workloads — we ensure the entire infrastructure meets compliance requirements.
Our private cloud is ideal for companies that must maintain:
- HITRUST
- HIPAA
- SOC 2
- Cyber insurance requirements
- Security audits and attestations
VMware’s pricing model changed. Your compliance requirements did not.
Business Continuity and Backup Solutions Independent of VMware
If an organization relies on VMware snapshots or VMware-native backup features, their entire recovery strategy may now be subject to new licensing costs.
SmartBase provides:
- Immutable backups
- Offsite replication
- Disaster recovery failover
- Managed recovery testing
- RTO/RPO planning
This ensures continuity planning remains intact — without VMware as the single point of dependency.
What This Means for Businesses in 2025 (and Why You Should Act Now)
Organizations facing VMware renewals this year have three choices:
- Absorb significantly higher costs
- Accept reduced functionality or flexibility
- Move to a secure, compliant alternative that controls long-term spending
Most IT leaders we speak with choose the third option.
And they choose it before their next renewal deadline forces their hand.
If your organization hasn’t evaluated alternatives yet, now is the time.
SmartBase Can Help You Reduce Costs, Improve Security, and Plan Your VMware Exit Strategy
Whether you want to fully transition away from VMware or simply reduce dependency, our team can guide the strategy, architecture, migration, compliance, and ongoing management.
We become your IT partner — not just a vendor.
If your VMware renewal is approaching or your costs have already increased, reach out to SmartBase Solutions at info@smartbasesolutions.com or click here to contact us. We’ll help you evaluate your options and build a path forward that protects your budget, your infrastructure, and your compliance obligations.
