From April 10th, 2025, Broadcom (the company that acquired VMware) are introducing changes to its licensing structure, increasing the minimum core purchase requirement from 16 to 72. For businesses relying on VMware solutions, this could mean substantial cost increases and reduced flexibility for your business.

‍

What’s changing?

There are three main changes for VMware users to be aware:  

• Under the new pricing structure, VMware customers will need to license at least 72 cores per product instead of 16. If your business does not require 72 cores per product, you will still be charged for 72 cores as a minimum.  

• Broadcom is introducing 20% reinstatement fees for lapsed contracts, meaning that businesses that don’t renew themselves on time will face penalties.

• Shift to a mandatory three or five-year commitment.

These changes are a large shift from the previous model where businesses could scale their licensing more efficiently based on their actual infrastructure needs. However, now businesses with smaller VMware environments will be forced into higher licensing commitments.

The impact on your business

These license changes will have a direct financial impact on businesses by increasing operational costs. With the introduction of having to commit to at least a 3-year commitment, you may also be in a position where IT budgets need to be managed more efferently.  

If your business has relied on VMware for virtualization, you may now be in a position of having to budget for the cost increase or considering alternate solutions. This will especially be the case for smaller businesses that have used fewer than 72 cores.

Did you know you can spread the cost of your software?

Rather than paying for VMware licenses outright, businesses can use finance solutions to spread costs over time. This approach enables companies to keep up with essential IT changes without disrupting cash flow.  

At Bluestone, we have access to an array of funders that recognise software as an asset, giving businesses the flexibility to finance software investments just as they would with physical assets. Not only do we finance physical licenses and contracts, but we are able to arrange finance for wholly hosted or cloud-based solutions.

The benefits of financing your software

By using a finance option as opposed to paying cash for your software you can benefit from:

Tailored finance for software-only solutions

Software can be leased rather than financed through a loan, giving you more flexibility in managing IT investments.

Tax benefits

Finance can unlock 100% tax relief on both capital expenditure and the interest.

Spread costs with predictable payments

Financing your software with fixed, manageable payments avoids you having large capital outlay and supports better cash flow.

Bespoke payment structures

We can structure a payment schedule that align with your business needs, such as structuring repayments to match seasonal income fluctuations.

Easy end-of-term process

Our software finance solutions operate on a fixed-term lease that ends without requiring manual termination, ensuring a hassle-free experience.

Interested?

Our online finance portal enables a simple, efficient route to finance - get a quick quote or apply for finance today.  

Apply for finance now

‍

Funding for your business

Bluestone is an ethical and FCA-regulated finance intermediary. We are committed to ensuring that our clients make informed financial decisions based on their requirements and always recommend that our clients seek independent financial advice from an authorised source before committing to any financial agreements.  

If you would like to explore software finance solutions in more detail, get in touch using the enquiry form below, or contact us here. One of our friendly and experienced team will be in touch as soon as possible.

Last updated: April 2025. Version: BS2025.04.01VPI