VMware by Broadcom has officially declared war on small and mid-sized businesses with the rollout of its new licensing policy, set to take effect this April. The policy mandates a minimum purchase of 72 CPU cores for both renewals and new licenses — a move many IT administrators and infrastructure managers view as a blatant dismissal of long-standing loyal customers in favor of massive enterprise accounts.
Previously, VMware allowed businesses to license per socket, giving flexibility to scale based on real needs. Now, even if a company only requires 32 or 48 cores, it will be forced to pay for 72. To make matters worse, Broadcom has introduced a 20% penalty for late renewals, pushing even more financial pressure onto already constrained IT budgets.
A Clear Message: Small Customers No Longer Welcome
The message from Broadcom is unmistakable: VMware is no longer interested in serving smaller organizations. Instead, it’s turning its focus to Fortune 500 companies, large financial institutions, and hyperscalers.
David Carrero, co-founder of European cloud infrastructure provider Stackscale (Grupo Aire), expressed strong concern: “Broadcom has made it crystal clear that smaller customers are no longer part of their strategy. At Stackscale, we are actively encouraging customers to consider Proxmox as a real, robust alternative to VMware — an open-source platform that respects flexibility and customer choice.”
Proxmox Gains Momentum as VMware Discontent Grows
Across IT forums, communities, and industry circles, frustration is giving way to action. Proxmox, with its open-source virtualization and container management, user-friendly interface, and transparent licensing model, is quickly emerging as the most attractive alternative.
“Proxmox lets businesses scale as needed, without arbitrary restrictions or licensing surprises,” Carrero added. “We already work with several partners and clients who have begun migrating away from VMware, tired of Broadcom’s heavy-handed tactics.”
The Breaking Point for Many IT Teams
For organizations running lean infrastructures, the requirement to purchase 72-core licenses — even when their usage doesn’t come close to that — has been seen as the final insult. Additionally, the 20% penalty for renewing outside the defined window has been criticized as a blatant money grab that disregards operational realities.
Industry experts warn that VMware risks alienating the very segment of the market that helped build its dominance over the past two decades.
Exploring Open-Source and Flexible Alternatives
Alongside Proxmox, open-source solutions such as OpenStack and hybrid infrastructure models are gaining rapid adoption. IT leaders are increasingly looking for platforms that offer freedom, scalability, and cost control — not forced, inflexible contracts that feel more like traps than solutions.
“It’s not just about pricing,” emphasized Carrero. “It’s about having control over your infrastructure and avoiding dependency on unilateral vendor decisions. At Stackscale, we’re committed to providing open, sustainable alternatives that give customers back that control.”
A Costly Gamble for VMware
Broadcom’s licensing overhaul may have been designed to drive profitability in the short term, but the long-term consequences could be far-reaching. Thousands of IT professionals are reconsidering their reliance on VMware, and the mass exodus to open-source solutions is already gaining pace.
As Carrero puts it: “VMware may think it can afford to lose small clients. But these clients are precisely the ones driving innovation, agility, and growth in the IT ecosystem. Ignoring them could end up being a costly strategic mistake.”
The coming months will reveal whether VMware can weather the backlash or if its aggressive licensing changes will accelerate the rise of more open, flexible platforms that truly listen to what the industry needs.
Versión en Español: VMware se olvida de las pymes: licencias imposibles y castigos por renovar tarde
