VMware's Aggressive Licensing Changes Spark Exodus of SMBs

2025-03-24
VMware's Aggressive Licensing Changes Spark Exodus of SMBs

VMware's new licensing policy, mandating a minimum purchase of 72 CPU cores for renewals and new licenses, has angered small and medium-sized businesses (SMBs). This forces even companies needing far fewer cores to overspend, coupled with a 20% penalty for late renewals. This move is seen as VMware abandoning loyal customers in favor of large enterprises. As a result, many IT admins and infrastructure managers are migrating to open-source alternatives like Proxmox, seeking more flexible and cost-effective virtualization. VMware's strategy shift may have profound long-term consequences.