How to Buy VMware Licenses

VMware’s move away from perpetual licensing was one of the biggest shifts in enterprise IT in recent years. In late 2023, under Broadcom’s leadership, the company announced that perpetual licenses would be discontinued in favor of a subscription-only model. The goal was to simplify operations and offer continuous value through updates and unified management, but for many customers, it also introduced new costs and planning considerations.

SKUs and product editions were consolidated to reduce confusion. VMware continues to apply a 16-core minimum per CPU for its current licensing structure, replacing the old processor-based model. That means a dual-CPU server, each with 8 cores, still requires licensing for 32 cores total. The switch to core-based licensing aligns VMware’s model with other leading enterprise software providers, but can significantly impact budgets depending on hardware density.

1. Determine Your Licensing Needs

Start by identifying what you’re running and where you plan to grow. Calculate the total number of hosts, CPUs, and cores in your environment, as these directly determine your subscription level.

Choose the right edition, either vSphere, VMware Cloud Foundation (VCF), or another suite, based on your use case. For example, vSphere supports general virtualization needs, while VCF provides a full-stack private cloud with integrated storage, networking, and lifecycle management.

If you manage workloads across hybrid environments, check whether you’ll need portability between private and public clouds. VMware’s new licensing allows flexibility across environments but requires careful planning to stay compliant. Always leave room for growth, as adding licenses later can cost more than securing them upfront.

2. Choose an Authorized Vendor or VMware Channel

To purchase VMware licenses, you must go through VMware directly or one of its authorized partners. Under Broadcom’s Advantage Partner Program, only approved resellers can provide legal, supported licenses. Beginning in August 2025, only partners within this framework will be permitted to sell or manage VMware subscriptions.

For hosted or private cloud setups, you can also buy through VMware Cloud Service Providers (VCSPs) or Cloud Service Providers (CSPs), which bundle infrastructure and licensing together. This approach often includes managed services and compliance support.

At OTAVA, we operate as an authorized VMware Cloud Service Provider, helping clients avoid unauthorized or gray-market sellers that can void support and create compliance risks.

3. Request a Quote & Compare Costs

When gathering quotes, clarify everything upfront:

• Core counts and CPU configurations
• License term length (1-year, 3-year, or longer)
• Support tier (standard or production)
• Renewal costs and upgrade options

Comparing offers from multiple partners helps ensure pricing transparency. Always confirm whether the VMware license cost includes support and whether renewals lock in current rates or reflect market adjustments.

4. Make the Purchase & Receive Your License Asset

Once approved, you’ll receive your VMware license file or activation key, typically as a single entitlement that covers your environment. For example, with VCF 9.0, VMware simplified activation by issuing unified license files instead of multiple keys for different modules.

In air-gapped or disconnected environments, admins must manually upload and export license usage data every 180 days. This ensures compliance even when systems can’t communicate directly with VMware’s portal.

After activation, store your proof of license, entitlement records, and renewal dates securely. These documents will be essential during audits or system expansions.

Once your environment is running, regularly check your VMware license key status to verify active entitlements and prevent accidental overuse. In VMware Cloud Foundation Operations, administrators can access a real-time dashboard showing license consumption versus available capacity.

For vSphere-only environments, this can be done directly in the vCenter interface under Administration → Licensing. You’ll see how many cores are covered and when renewals are due.

For enterprises managing multiple environments, third-party monitoring tools help track configuration drift and alert teams when workloads exceed licensed capacity. Staying proactive keeps you compliant and avoids interruptions to updates or support.

Licensing doesn’t end after purchase. It evolves with your environment. VMware’s subscription model means you’ll need to plan for renewals and occasionally upgrade editions to maintain compatibility with new product releases.

If your subscription lapses, updates and support are paused, and functionality may degrade depending on the product. For instance, vCenter might continue to operate temporarily but without patch access or technical support.

Expired subscriptions can also trigger penalties. Broadcom’s 2025 terms note that a 20% surcharge may apply to late renewals. Organizations that miss renewal windows risk higher costs or temporary access loss to license management tools.

To renew VMware licenses, you’ll need to extend your subscription using the same core-based model. Renewals usually follow current market rates, not legacy pricing.

In many cases, VMware offers upgrade SKUs that allow you to purchase only the additional functionality rather than a full repurchase, but terms vary by edition, region, and support contract.

As of late 2025, the CSP program has become invite-only, which could limit smaller resellers’ ability to manage renewals or upgrades. Working with a partner like OTAVA ensures continuous access and guidance throughout these changes.

VMware’s new licensing model may seem more streamlined, but it also leaves room for costly oversights, especially for teams juggling multiple environments or lacking dedicated licensing support.

One common error is underestimating total core requirements, which can lead to under-licensing and potential non-compliance. Some organizations also purchase from unauthorized resellers, not realizing this can void their support agreements and expose them to security risks.

Renewals can be another blind spot. Missing a renewal deadline may result in service disruptions or penalty fees, especially under Broadcom’s updated subscription terms. Others fail to regularly track license usage, which creates the risk of workloads quietly outgrowing entitlement limits.

In air-gapped or highly regulated environments, overlooking offline licensing compliance can trigger audit findings. Each of these mistakes impacts cost, disrupts operations, delays updates, and weakens vendor trust. That’s why regular audits and proactive license reviews should be baked into every organization’s IT governance plan.

Getting VMware licensing right is about compliance, stability, scalability, and control. When you buy VMware licenses through authorized partners like OTAVA, you gain access to certified experts who handle everything from initial planning to lifecycle management.

We help clients forecast core usage, optimize license allocation, and manage renewals so they can stay focused on growth. Whether you’re trying to upgrade VMware licenses, renew VMware licenses, or just understand how VMware licensing works, our team ensures every deployment remains aligned with the latest Broadcom policies and pricing.

If you’re unsure where to buy VMware licenses, we can walk you through every option, direct from VMware, through the Advantage Partner Program, or as part of a managed private cloud service. No matter how complex your infrastructure is, we make licensing simpler and more predictable. Contact us to get started.