VMware VCF License Portability: A Guide for MSPs

Broadcom’s restructuring of the VMware Cloud Service Provider (VCSP) program has created new rules and new opportunities for Managed Service Providers (MSPs). One of the most important changes is license portability. For partners and customers, understanding what this means, what you can and cannot do, and the critical deadlines is essential to avoid disruption and protect your VMware investments. 

What Is License Portability? 

License portability is a feature of the new VMware Cloud Foundation (VCF) subscription model. It allows customers to take their VCF licenses and run them across validated environments — including on-premises, edge deployments, and authorized partner clouds without having to repurchase or re-license. 

For MSPs, this means you can help customers extend the value of their existing VMware investments, while giving them the freedom to choose the right cloud execution venue for each workload. 

What MSPs Can Do with License Portability

• Add-On Portability: Certain add-on services (such as security, DR, and AI) can also be ported from on-premises to the cloud. 
• Managed Services: MSPs can operate customer-owned licenses under the Broadcom EULA, provided they assume full compliance responsibility.  
• Bring Your Own License (BYOL): Customers can port their active VCF subscriptions from on-premises to an authorized partner environment like OTAVA’s private cloud. 
• Hybrid Deployment: VCF licenses are portable across on-prem, edge, and partner-hosted private or public clouds, enabling flexible workload mobility. 

What MSPs Cannot Do Moving Forward 

• No Hosting with Reseller Licenses: VMware licenses purchased via traditional resellers or OEMs cannot be repurposed for hosted or multi-tenant services. 
• No White Label Program: Broadcom is sunsetting the White Label model on October 31, 2025. 
• No New Contracts Post-Deadline: Departing VCSP partners cannot add new customers, execute new contracts, or renew existing ones after October 31, 2025. They may only support existing commit contracts until their term expires. 

Key Dates to Watch 

• July 15, 2025:
  • Broadcom issued non-renewal notices to VCSP partners not invited to the new Pinnacle or Premier programs. 

• October 31, 2025: 
  • Current VCSP program ends. 
  • Final day for new orders and White Label contracts. 
  • Transition to “support-only” for existing commit contracts. 

• November 1, 2025: 
  • Departing partners limited to supporting existing customers only. 
  • No new logos, expansions, or renewals permitted. 

Why License Portability Matters 

• Choice and Flexibility: Customers can move licenses between validated endpoints without repurchasing. 

• Investment Protection: Existing VCF subscriptions remain usable during and after the transition. 

• Hybrid/Multi-Cloud Readiness: Workloads can move seamlessly across on-premises, edge, and authorized partner clouds. 

• Compliance-Driven Continuity: Portability supports regulated industries that cannot afford licensing disruptions.

How OTAVA Helps MSPs Navigate the Transition 

As an authorized Pinnacle VCSP partner, OTAVA is fully validated for license portability and ready to help MSPs transition customers before the October 31, 2025 cutoff. 

Here’s what you can expect when you partner with OTAVA: 

• Zero-Downtime Migration: Expertise to move VMware workloads quickly and securely. 

• Full-Stack Services: Security, compliance, backup, disaster recovery, and AI-ready infrastructure layered on VCF. 

• Partner-First Model: We operate as a “partner for partners,” enabling you to retain customer relationships and revenue streams while OTAVA provides the infrastructure and services. 

• Free Dedicated Private Cloud and Migration: To help with these changes, OTAVA is providing a dedicated VCF environment free for three months and free migration assistance to help partners navigate these changes in time.  

License portability is one of the most important tools MSPs have in the Broadcom era. It provides flexibility, protects investments, and ensures customers can continue to run VMware Cloud Foundation wherever it makes the most sense. But time is short. The October 31, 2025 deadline is approaching fast, and partners must align with authorized providers to keep serving customers without disruption. 

Don’t wait until it’s too late. Contact OTAVA today to discuss how license portability and our Pinnacle VCSP status can safeguard your customers and open the door to new opportunities.