Leaving VMware after Broadcom: OpenShift Virtualization, Nutanix or cloud, and what the move really takes
VMware is now sold only as per-core subscriptions, the cloud loopholes are closing and vSphere 8 support ends in 2027. Here's how the exit options compare, what stalls migrations, and how to time the renewal.
part 4 of 8 · Cloud calls you'll have to makethe ideaPrice the exit before you sign the renewal, then move VMs in waves.
after reading, you can- Explain to finance why you can't decide the VMware renewal without an exit plan
- Pick a home for each group of VMs instead of one platform for the whole estate
- Spot what stalls a migration before the first wave, from missing VDDK to backups that can't follow
Broadcom now sells VMware only as per-core subscriptions, and the cheap ways around that are closing: Azure retires its pay-as-you-go VMware SKUs with the licence included at the end of this month, and vSphere 8 loses general support next October. If your renewal lands in the next year, price the exit before you sign, so the renewal buys you time instead of locking you in.
Your servers keep running. What changed is the price of staying, and the rules for leaving
Most companies run their business applications on virtual machines, and for years most of those VMs sat on VMware. Broadcom bought VMware in late 2023 and changed how it's sold: no more one-off licences, only yearly subscriptions priced per processor core, bundled into two large packages. Many customers say their renewal quotes jumped several times over. You now have three choices. Renew and stay, renew for a short term while you move, or move to another platform such as Red Hat OpenShift Virtualization, Nutanix, Microsoft Hyper-V or a public cloud. Each one costs money and staff time, and the worst outcome is signing a long renewal because nobody planned the move.
It's like the landlord of the building your shops are in being bought by a new owner who rewrites every lease. Rent is now per square foot including floors you never use, and month-to-month deals are gone. You can sign, sign short while you look, or move. Moving takes months, so you start looking well before the lease runs out.
- Companies running vSphere or VCF
- CFOs facing a VMware renewal
- Teams on Azure VMware Solution
- Infrastructure and platform engineers
- Backup and DR owners
Why it matters to you
The first hit is the bill. Broadcom stopped selling perpetual licences and support renewals in December 2023 and moved everything to subscriptions. Its own knowledge base says you must license at least 16 cores for every CPU, whatever the chip actually has. AT&T said in court papers that it faced a proposed 1,050% rise. A German user group complained to the European Commission about increases of several hundred percent, and CISPE, a European cloud trade body, says some providers saw more than 1,000%.
The second hit is time. Some customers told The Register their quotes arrived a handful of days before the old contract expired, and a trade press report says late renewals carry a 20% surcharge. Leaving takes longer than most budgets assume. The same paper reported that Toshiba expects one to two years to move 2,200 VMs.
Gartner's analysts expect real movement, but slowly. One Gartner research VP said more than a third of VMware workloads will run somewhere else by 2028, and Gartner now expects 55% of enterprises to start proofs of concept to move away by 2029. A CloudBolt-sponsored survey reported by CIO.com in February 2026 found 86% of firms cutting back on VMware, yet only 2% had moved three quarters of their estate. Most people are in the middle, paying for VMware while they work their way off it.
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01 Perpetual licences stop
You can't buy one-off licences or renew their support any more. The software you own still runs, without patches or new versions.
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02 Subscriptions per core
Renewal means a VCF or vSphere Foundation subscription, counted per core with a 16-core floor per CPU.
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03 Cloud loopholes close
Azure, Google and AWS now need you to bring a VCF subscription bought from Broadcom to run VMware in their clouds.
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04 Old versions age out
vSphere 7 lost general support in October 2025. vSphere 8 follows in October 2027, so staying put isn't free either.
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05 You pick a road
We usually recommend renewing for a short term while you move. Which contract you sign should come out of the migration plan.
For engineers: an expired support contract doesn't switch anything off. Broadcom's own KB says the entitlement stays, ESXi and vCenter keep working, and licensed features stay unlocked. You lose support cases and the right to new patches. In May 2025 heise reported that Broadcom sent cease-and-desist letters asking some perpetual-licence holders with lapsed support to remove updates installed after their contracts ended, so patching an unsupported estate quietly is a legal risk as well as a technical one.
What Broadcom changed, and the dates that matter
The changes that drive the decision
No longer sold since December 2023. Existing perpetual licences keep working, but without new patches once support lapses.
VMware Cloud Foundation (VCF) and vSphere Foundation (VVF), counted per physical core with a minimum of 16 cores per CPU. vSAN is counted per TiB.
A distributor's email reported a 72-core minimum per order line last year, and its staff later said it was dropped across EMEA, which Broadcom didn't confirm. Late renewals reportedly cost 20% extra. Ask for both in writing on your own quote.
Azure VMware Solution and Google Cloud VMware Engine now need a portable VCF subscription that you buy from Broadcom. Moving VMware into a cloud no longer gets you away from the licence.
AWS stopped reselling VMware Cloud on AWS in 2024. You can still run VMware there on Amazon EVS, inside your own VPC, but you bring the VCF licence yourself.
Broadcom took down the public download of VDDK in August 2026. Many migration tools read VM disks through it, so check how yours gets a copy.
The VDDKdefinitionVMware's disk library. Backup and migration tools use it to read VM disks fast, and Broadcom stopped offering it as a public download this summer. change gets the least attention and hurts migrations the most. Azure Migrate, Red Hat's Migration Toolkit for Virtualization, Nutanix Move and virt-v2v all use it to read VM disks quickly. Red Hat's docs say VMs on vSAN won't migrate without it. One practitioner in the middle of a large Azure Local migration told Hacker News they'd saved a copy before it disappeared, and guessed the agent-based alternative fails on 10% or more of VMs. Before you pick a tool, ask its vendor how they get VDDK today.
| Version | Released | End of general support | What that means |
|---|---|---|---|
| vSphere / vSAN 7.x | Apr 2, 2020 | Oct 2, 2025 (extended from Apr 2025) | No product support. Technical guidance applies only to old VMware contracts |
| vSphere / vSAN 8.x | Oct 11, 2022 | Oct 11, 2027 | Still supported for now. Plan the next move before late 2027 |
| VCF 9.x | Jun 17, 2025 (9.0) | Subscription only | The current platform (9.1 since May 2026), sold only as a subscription |
The dates to put in your plan
- Nov 22, 2023Broadcom completes the VMware deal
- Dec 2023Perpetual licences and SnS renewals end
Everything moves to subscription.
- Jan 15, 2025OpenShift Virtualization Engine launches
Red Hat's VM-only edition of OpenShift. Its migration toolkit comes in the box.
- Jun 17, 2025VCF 9.0 released
- Oct 2, 2025vSphere 7 general support ends
- Nov 1, 2025Clouds require portable VCF
From here on, running VMware in Azure or Google means buying VCF from Broadcom yourself.
- Aug 2026Public VDDK download removed
Migration tools that read disks through VDDK need another way to get it.
- Oct 31, 2026AVS pay-as-you-go licence-included SKUs retire
- Aug 30, 2027All AVS licence-included SKUs retire
Reserved instances must switch to bring-your-own VCF or the workloads must leave AVS.
- Oct 11, 2027vSphere 8 general support ends
Anyone on AVS pay-as-you-go has until the end of this month. Microsoft is keeping AVS. It's the SKU with the licence baked in that goes. Staying means buying VCFdefinitionVMware Cloud Foundation, Broadcom's full VMware bundle. It's sold as a subscription per processor core, and you now need it to run VMware in the big clouds too. from Broadcom and putting the key in the portal, plus a separate Broadcom vDefend Firewall add-on if you use the NSX firewall beyond what an older reservation covers. Microsoft tells Broadcom about those registrations every month.
Your options, side by side
There's no single winner here. Most estates end up split: some VMs stay on VMware for a while, a group moves to a new on-premises platform, and the rest go to cloud or get retired. The table shows what each road actually involves.
| Option | What it is | How VMs move | Watch out for |
|---|---|---|---|
| Renew VCF or VVF | Stay on VMware with a subscription | Nothing moves | Per-core cost, 16-core floor, short quote windows, vSphere 8 support ends Oct 2027 |
| Red Hat OpenShift Virtualization | VMs run as Kubernetes objects on OpenShift (KubeVirt), next to containers | Migration Toolkit for Virtualization: cold, or warm from vSphere using CBT | Needs Kubernetes skills, RWX storage for live migration, a new backup and network design |
| Nutanix AHV | Nutanix's hypervisor on its own platform, on-premises or in cloud (NC2) | Nutanix Move, or in-place conversion of ESXi-on-Nutanix clusters | External storage only on select arrays (Dell PowerFlex, Pure FlashArray), new hardware otherwise |
| Hyper-V or Azure Local | Microsoft's hypervisor in Windows Server 2025, or Azure Local (was Azure Stack HCI) | Azure Migrate to Azure Local (agentless), or SCVMM offline conversion | SCVMM needs VMs powered off and VMware Tools removed, and can't convert vSAN-hosted VMs |
| Proxmox VE | Open source KVM platform, all features free, paid support per socket | Built-in ESXi import wizard (no VDDK needed) | No import from vSAN or encrypted disks, Linux skills needed, younger backup integrations |
| Public cloud | AVS, Amazon EVS, Google VMware Engine with your own VCF, or native cloud VMs | HCX for AVS, Azure Migrate, AWS Transform and MGN, Google Migrate to VMs | VMware-in-cloud still needs a Broadcom subscription. Native cloud needs resizing and new ops |
OpenShift VirtualizationdefinitionPart of OpenShift, Red Hat's Kubernetes platform, that runs virtual machines next to containers on the same cluster. Under the hood it's the KubeVirt project. makes most sense when you already run containers or plan to. A VM becomes a Kubernetes object, so the same cluster, pipelines and policies cover both. Red Hat sells a VM-only edition, OpenShift Virtualization Engine, that allows unlimited VMs on each subscribed host but no application containers. Its migration toolkit can move a running vSphere VM warm, copying most data first and cutting over with a short stop, as long as Changed Block TrackingdefinitionA VMware feature that records which parts of a disk changed. Migration tools use it to copy a running VM first and move only the changes at cut-over. is on for every VM and every disk.
Nutanix is the closest match to how a vSphere team already works: a GUI-first platform with its own storage and the Move tool for migrations. Microsoft describes Move as a no-cost tool. Nutanix says Move can convert clusters that already run ESXi on Nutanix hardware to AHVdefinitionNutanix's own hypervisor, which runs the VMs on Nutanix servers. You'd use Nutanix Move to get VMs onto it. in place, installing VirtIO drivers and keeping IP and MAC addresses. If you've got a general Fibre Channel SAN, though, check the list first. Nutanix's external-storage support covers Dell PowerFlex and Pure FlashArray, and a generic SAN isn't on it.
Proxmox VE draws smaller teams because every feature is free and support costs from €120 to €1,100 per socket each year. Its import wizard connects to ESXi directly and doesn't need VDDK. One team of four posted that their move to six Proxmox clusters took eight months. Talking to stakeholders took longer than copying a 192 TB VM, and they said Fibre Channel multipathing and the Veeam integration were the rough edges.
Cloud is really two different moves. Running VMware inside a cloud moves the hardware problem but keeps the licence, since Azure, AWS and Google now all want your own VCF subscription. Moving to native cloud VMs ends the VMware bill. Someone still has to resize every VM and rebuild backup and operations around that cloud's own tools, and AWS offers Transform for VMware, which uses AI agents to map dependencies and plan the waves.
- Sign a multi-year VCF or VVF subscription
- No migration work, no new skills to hire
- Cost set by per-core pricing at every renewal
- You'll still face a bigger VMware upgrade before vSphere 8 support ends in late 2027
- Cloud options still need a Broadcom licence
- Buy the shortest term that covers the migration
- Renew only the cores still on VMware
- Inventory, pilot and wave plan run in parallel
- Backups, DR and monitoring rebuilt for the new platform
- Next renewal is smaller, or never happens
Cleveland Clinic took the second road in public. At Red Hat Summit it said it had renewed for three years to buy time, had moved 450 of its more than 10,000 VMs to OpenShift Virtualization, and aims for a 50% lower total cost before the next renewal. Those are vendor-stage numbers, so treat them as a direction rather than a promise.
What the move really takes
Copying disks is the easy part. What makes VMware exits slow is everything plugged into vCenter, from backup jobs to the NSX firewall rules. Someone involved in Red Hat's virt-v2v work called a 12,000-VM customer medium to large but not unusual. Their estimate for a job that size was a scoping exercise, then perhaps one to three months of conversions, with each VM down from a reboot up to 12 hours depending on the strategy.
Before: everything hangs off vCenter
Windows and Linux VMs run on ESXi clusters managed by vCenter, with vSAN storage and NSX networking. Backup, DR and monitoring tools all talk to vCenter's APIs, so each one has to be replaced or re-pointed.
After: most VMs moved, tools rebuilt, a small VMware cluster left
Most VMs run on the new platform, here OpenShift Virtualization with storage that supports RWX for live migration. A small VMware footprint stays for appliances the vendor hasn't certified elsewhere. Backup and monitoring were rebuilt and tested before each wave moved.
How we'd run a VMware exit, from the quote to the last host
- 01Read the contract and the quote
Put the renewal date, core counts, term and any AVS or cloud reservations on one calendar. Work out the shortest term that covers a realistic migration, with buffer.
- 02Export the vCenter inventory
Pull every VM with CPU, memory, disks, guest OS, snapshots, datastore type and network. Flag vSAN-backed, encrypted, NVMe and RDM disks, plus Windows VMs with Measured Boot or Secure Boot, because migration tools treat those differently.
- 03Give every VM a destination and an owner
Stay on VMware for now, new platform, cloud VM, managed service or retire. Nobody claiming a VM is a decision too: shut it down in a change window and see who calls.
- 04Settle the tooling first
Confirm how your migration tool gets VDDK today. Check your backup product supports the target, and plan what replaces NSX segments and firewall rules before any VM moves.
- 05Build the target and pilot it
Build storage, networking and backup on the new platform. Move a mix of Windows and Linux VMs, one database and one appliance, then test performance, restores and failover.
- 06Migrate in waves by dependency
Group VMs that talk to each other, enable CBT where warm migration is used, and keep each source VM powered off but intact until the wave is signed off.
- 07Shrink VMware as clusters empty
Retire hosts as they empty, and size the next renewal to the cores that are left. Keep written proof of what was removed and when.
Backup is where many plans come unstuck. Veeam Backup & Replication 13 now protects Proxmox VE, Nutanix AHV and OpenShift Virtualization VMs, and it can restore vSphere backups into OpenShift or AHV. One practitioner pointed out that backup products still carry VDDK, so a cross-platform restore can work as a migration path if your normal tool can't read disks. Check yours against the target before the pilot, not after the first wave. Our OpenShift page covers the platform work, and our cloud migration service covers wave planning and cut-overs.
What to do now
What to do now, by who you are
- Find your VMware renewal date and the last price you paid, and ask for the new quote early
- Ask IT for a one-page plan: what stays, what moves, by when, before you sign anything
- Sign the shortest term that covers the plan, for only the cores still needed
- Export the vCenter inventory now and mark every disk your tool might refuse. Better to find them in a spreadsheet than on cut-over night
- Ask your migration tool's vendor how it gets VDDK now. If you hold a licensed copy, keep it safe
- List every tool that calls vCenter. Backup, DR, monitoring and old scripts all need a new home when vCenter goes
- If you're on AVS pay-as-you-go, sort out a VCF BYOL licence or a move before October 31
- Map NSX firewall rules and segments to what replaces them on the target
- Don't patch hosts whose support has lapsed without checking your licence rights
- Keep vSphere 7 hosts that no longer get patches away from the internet and sensitive systems until they move
- Say which VMs are yours and which can go. Anything nobody claims gets shut down in a change window
- Ask appliance vendors which platforms they certify besides VMware
- Agree a cut-over window and test plan for each of your VMs
# Every VM with size and guest OS Get-VM | Select Name, NumCpu, MemoryGB, ProvisionedSpaceGB, @{N='OS';E={$_.Guest.OSFullName}} | Export-Csv vms.csv # Is Changed Block Tracking on? (warm migration needs it) Get-VM | Select Name, @{N='CBT';E={$_.ExtensionData.Config.ChangeTrackingEnabled}} # vSAN datastores (some tools can't read them without VDDK) Get-Datastore | Where-Object {$_.Type -eq 'vsan'} # Raw device mappings Get-VM | Get-HardDisk -DiskType RawPhysical,RawVirtual | Select Parent, Name, DiskType
Make the next renewal less painful
Teams get squeezed like this because the hypervisor was treated as permanent, so everything was built to depend on it. Whatever platform you land on, the same habits keep the next vendor change from becoming a crisis.
What keeps you able to leave
- 01Keep a live inventory with owners
Every VM has a named owner, a destination and a retirement date. The inventory you build for this exit should keep running after it, fed from the platform, not a spreadsheet updated once a year.
- 02Provision through code
Build VMs and networks with Terraform or GitOps instead of vCenter-only scripts, so the definitions can be pointed at another platform with less rework.
- 03Pick backup that restores across platforms
Choose a backup product that supports both your current and your target platform, and test a cross-platform restore once a quarter.
- 04Put contracts on the change calendar
Renewal dates, notice periods and support end dates sit next to change freezes, with a decision point six months before each one.
- 05Keep proof of what you removed
Allstate alleges in court filings that VMware started a licence audit once it learned Allstate wouldn't renew. Record when each host was wiped and each licence key retired, so an exit audit is a document request, not a dispute.
If a migration wave goes wrong
If a wave fails or the timeline slips
The safest way back is the original VM. Keep each source VM intact and powered off until its wave is signed off, and a failed cut-over becomes a restart instead of a restore.
- 01Stop the wavefirst hour
- Halt further cut-overs in the wave and keep the failed VMs powered off on the target
- Work out whether it's drivers, network, storage or the app. Each one has a different fix
- 02Roll backsame window
- Power the source VMs back on in vSphere and check the app works. Users should be back where they started
- If the source was changed, restore it from the last backup taken before cut-over
- Tell app owners and the service desk which copy is live, so nobody chases the wrong system
- 03Fix and retestfirst week
- Reproduce the failure on a copy, for example missing VirtIO drivers or a lost static IP
- Update the runbook and rerun the pilot VM of that type before rescheduling
- 04Protect the contractas soon as it slips
- Re-check the renewal date against the new plan and ask for a short extension early
- Renew only the cores still needed, for the shortest term that covers the slip
What this could look like
What this looks like in four different companies
- the setup
- A software firm moved its data center to Azure VMware Solution two years ago and pays monthly with the licence included. Nobody has bought anything from Broadcom directly.
- what happens
- The SKU they pay for disappears on October 31. Nobody owns the Broadcom relationship, so nobody has a VCF key to register.
- what to do
- Get a VCF quote from Broadcom now, and in parallel price moving the VMs to native Azure VMs with Azure Migrate. Pick whichever covers the next two years for less.
- the setup
- A bank runs 3,000 VMs on vSAN with NSX microsegmentation, and its renewal is due in five months. It already runs OpenShift for a few new apps.
- what happens
- The quote is several times last year's. The team starts a migration, then finds its tool can't read vSAN disks without VDDK, and the NSX rules have no direct equivalent.
- what to do
- Renew short for only the cores needed. Secure VDDK, move VMs onto storage the tool can read, and rebuild NSX rules as OpenShift network policies before the first wave.
- the setup
- A manufacturer runs vSphere 7 on three hosts with perpetual licences. Support lapsed last year, and a small IT team looks after it alongside everything else.
- what happens
- The hosts still run, but no new patches arrive. The team hesitates to patch at all, given the reported cease-and-desist letters, and the auditors note the platform is unsupported.
- what to do
- Compare Hyper-V on Windows Server 2025, Proxmox VE and Nutanix for a small estate. Run a pilot of two VMs, then move the rest over a few weekends.
- the setup
- A retailer picks a new hypervisor and moves its first 200 VMs. Backup and DR tools were licensed for vSphere and nobody checked the target.
- what happens
- Backups of the moved VMs stop. A restore test fails and the next waves are frozen until protection is back.
- what to do
- Check backup and DR support for the target before any VM moves, run a restore test in the pilot, and keep the source VMs until protection is proven.
We help infrastructure teams through the whole thing, from reading the renewal quote and building the inventory to piloting the target platform and running the waves. We stay neutral on where VMs should land, because most estates end up using more than one platform. See our OpenShift engineers if you need people for the build, or start with a free assessment.
What to take from this
- 01
VMware is subscription-only now, counted per core with a 16-core floor per CPU. Price the exit before you sign the renewal.
- 02
On Azure VMware Solution pay-as-you-go? Bring your own VCF licence by October 31, 2026, the same rule Google and AWS now apply.
- 03
vSphere 7 is past general support and vSphere 8 follows in October 2027, so on perpetual licences you'll end up running versions without general support sooner or later.
- 04
Check VDDK access, vSAN disks, NSX rules and backup support before choosing a target. Those stall migrations more than VM counts.
- 05
A short renewal for only the cores you still need, plus an inventory and pilot running now, is the route we usually recommend.
01Will my VMware servers stop working if I don't renew?
No. Broadcom's knowledge base says an expired support contract doesn't revoke a perpetual licence, and ESXi and vCenter keep running. You lose support cases and new patches. Some customers with lapsed support were asked to remove patches installed after their contracts ended, so check your rights before patching.
02What are the real alternatives to VMware?
On-premises, the main ones are Red Hat OpenShift Virtualization, Nutanix AHV, Microsoft Hyper-V or Azure Local, and Proxmox VE. In the cloud you can run VMware in Azure, AWS or Google with your own VCF subscription, or move to native cloud VMs. Most companies end up using two or more.
03How long does a VMware migration take?
It depends on VM count, storage, how many appliances you have and how much tooling depends on vCenter. Someone involved in Red Hat's virt-v2v work estimated a 12,000-VM job at scoping plus perhaps one to three months of conversions. The Register reported that Toshiba expects one to two years for 2,200 VMs. A pilot gives you real numbers for your own estate.
04Our AVS runs pay-as-you-go. What happens at the end of October?
Microsoft retires the pay-as-you-go SKUs that include the VMware licence. AVS itself carries on, but you need a portable VCF subscription bought from Broadcom. Reserved instances with the licence included must switch to bring-your-own VCF by August 30, 2027, or the workloads must leave AVS.
05Is OpenShift Virtualization a good VMware replacement if we don't use containers?
It can be. Red Hat sells OpenShift Virtualization Engine, a VM-only edition that allows unlimited VMs per subscribed host but no application containers. You'll still need Kubernetes skills, storage that supports RWX for live migration, and new backup and network designs.
06Can we keep our SAN if we move to Nutanix?
Only if it's on Nutanix's list. Nutanix supports external storage with Dell PowerFlex and Pure Storage FlashArray. A general Fibre Channel SAN isn't on that list, so plan for Nutanix storage or another platform that works with your array.
07What is VDDK, and does it affect our migration?
VDDK is the VMware library that tools use to read VM disks fast. Azure Migrate, Red Hat's migration toolkit and Nutanix Move use it, and VMs on vSAN won't migrate with Red Hat's toolkit without it. Broadcom removed the public download in August 2026, so ask your tool's vendor how they get it.
08Is vSphere 7 still supported?
No. vSphere 7 and vSAN 7 lost general support on October 2, 2025, and those hosts get no fixes now. vSphere 8 has until October 11, 2027. After that you're looking at a subscription on a newer VMware version, or a different platform.
Three questions, about a minute
Pick an answer and we'll tell you if it's right, and why it is or isn't. The score stays in this browser.
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Q1Your VMware renewal is due in three months and the migration plan needs a year. What would you do?
show the answer
B. Renew for the shortest term that covers the migration, for only the cores you still need A short renewal covers the months of migration without paying for years you won't use. Patching after support lapses carries legal risk, and AVS now needs your own VCF subscription.
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Q2Your migration tool can't read some VMs, and they all sit on vSAN. What's the likely cause?
show the answer
D. The tool has no VDDK, which it needs to read vSAN-backed disks Red Hat's docs say vSAN-backed VMs won't migrate without VDDK, and Broadcom removed its public download in August 2026. Confirm how the tool gets VDDK before the first wave.
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Q3Two hundred VMs moved to a new platform and their backups stopped. What check would have caught it?
show the answer
A. Restore a backup on the target platform during the pilot, before the waves start Backup and DR tools were licensed for vSphere and never tested on the target. A restore test in the pilot shows whether protection follows the VMs before the waves start.