Is Broadcom Forcing Costly Bundles— and Driving Your VMware Spend Up 5–10X?
Whether facing Broadcom audits, restructuring clusters, or adapting to new licensing rules, LDS delivers the confidence that every license, cluster, and core is fully defensible.
Reduce Costs
Cut licensing expenses by up to 35%
Enterprise-grade optimization
Stay Compliant
100% audit-ready infrastructure
Zero audit penalties
Maximize ROI
75% return on investment
Strategic optimizationThe VMware Licensing Crisis Every Organization Must Confront
For almost two decades, VMware licensing was predictable. You bought perpetual licenses, renewed support when you wanted, and outside of the occasional audit, it was business as usual. But now, in 2025, that stability is gone.
Broadcom didn't just acquire VMware — they ripped up the playbook and built an entirely new game.
Most organizations still think it's business as usual.
Another renewal. Another audit. Another cycle.
It's not.
This is a reset. A complete restructuring of VMware licensing. And if you walk into it unprepared, you're not just risking compliance — you're staring down forced subscriptions, seven-figure budget overruns, and audits designed to take control of your IT spend.
What New Broadcom Terms Trigger Violations?
How New Broadcom Terms Impact Organizations
Cost Impact
LICENSING EXPERT"Broadcom's new terms eliminate perpetual licenses, enforce country restrictions, and require 180-day reporting - driving massive cost increases."
OVERWHELMED BUSINESSES"What do these new terms mean? How much will this cost us? Are we even compliant anymore?"
Budget Impact: UNKNOWNPerpetual Licenses Eliminated
Country-of-Use Restrictions
180-Day Reporting Mandate
Forced Bundle Requirements
SMB Price Explosion
Broadcom's Stealth Audit Practices
When moving customers from legacy VMware licenses to Broadcom's new subscription renewals, Broadcom often directs organizations to use its own tools—KB 95927 (Inventory Script) and KB 96426 (License Calculator). While presented as "helpful planning aids," these scripts are data-harvesting tools that capture detailed infrastructure intelligence.
💡 Here's the Reality:
These scripts capture CPU cores, vSAN storage capacity, host configurations, and then apply Broadcom's new licensing logic. When you share the results, you're essentially providing a stealth audit—exposing compliance gaps and licensing vulnerabilities that lead to renewal quotes 5–10× higher than expected.
📋 The Source Documents:
Broadcom KB 95927
Inventory Collection Script
Broadcom KB 96426
License Calculation Tool
How LDS turn Audit Anxiety into Advantage?
Our comprehensive 5-step methodology transforms licensing chaos into strategic advantage
Strategic Partnership for Licensing SuccessUnaffiliated Software Licensing Advisory
Full Autonomy
15+ Years ExperienceOperating with full autonomy from VMware, Broadcom, or any other software provider. For more than 15 years, our team of former auditors and licensing specialists has sat on both sides of the table—experiencing the pressures and strategies vendors use, while also understanding the practical challenges organizations face during audits, negotiations, and license renewals.
Independent
Expert
Trusted100% Client-Focused
Zero Vendor Conflicts
Unlike resellers or vendor-aligned consultants, we do not receive incentives, commissions, or kickbacks. Our sole commitment is to our clients, ensuring they receive clear, unbiased guidance tailored to their business needs. Over the years, we have gained a deep understanding of VMware's evolving licensing models, audit strategies, and compliance pitfalls.
Holistic VMware Estate Visibility and Data Collection
We establish a complete and accurate picture of your VMware environment by consolidating contract details, entitlement data, and deployment records to give you full visibility.
Key Outcomes
Auditor-Level Compliance and Risk Analysis
Our specialists apply VMware's licensing rules with auditor-level precision, giving you a defensible compliance position and protecting against unexpected audit claims.
Key Outcomes
Auditor-Level Compliance and Risk Analysis
Our specialists apply VMware's licensing rules with auditor-level precision, giving you a defensible compliance position and protecting against unexpected audit claims.
Key Outcomes
Auditor-Level Compliance and Risk Analysis
Our specialists apply VMware's licensing rules with auditor-level precision, giving you a defensible compliance position and protecting against unexpected audit claims.
Key Outcomes
Auditor-Level Compliance and Risk Analysis
Our specialists apply VMware's licensing rules with auditor-level precision, giving you a defensible compliance position and protecting against unexpected audit claims.
Key Outcomes
Our Numbers Speak for Themselves
Proven results that demonstrate our expertise and commitment to excellence in IBM licensing
ENTERPRISE MICROSOFT CLIENTS
CLIENT SAVINGS
MICROSOFT LICENSING EXPERTS
YEARS OF MICROSOFT EXPERIENCE
AUDIT DEFENSE SUCCESS RATE
How LDS implementation process works?
Licensing Data Solutions (LDS) helps organizations ensure VMware software usage remains aligned with Broadcom's contractual requirements.
Our 4-step VMware Compliance Approach
Our comprehensive 4-phase approach to VMware licensing optimization and compliance management
Step 1
Discovery
Infrastructure Analysis
In-depth discovery of VMware infrastructure focusing on compliance metrics including physical core counts, cluster mapping, vSAN capacity, feature utilization, and subscription data.
Step 2
Review
Compliance Assessment
Thorough review of your VMware estate, comparing actual deployments against license agreements. We reconcile device with Active Directory records and map virtual machines to physical hosts for transparent ELP visibility.
Step 3
Analysis
Data Validation
Validate data against VMware entitlements and Broadcom's framework. Focus on per-core licensing compliance and feature alignment assessment.
Step 4
Strategy
Recommendations
Develop tailored licensing strategies aligning VMware deployments with business requirements. Evaluate Broadcom's transition impact and identify cost optimization opportunities.
Expected Outcomes
Complete Discovery
100% Infrastructure Visibility
Compliance Assured
Zero Audit Risk
Data Validated
98%+ Accuracy
Cost Optimized
25-35% Savings
LDS Product Bundling Simulation
At LDS, we don't just compare bundles — we rebuild your VMware licensing strategy from the ground up to ensure every product you use (or don't use) is aligned with Broadcom's new terms.
Product Bundling Simulation Flow
Data Collection
RVTools, vCollector & Environment Analysis
- Legacy Metrics
- Current Usage
- Topology Map
Rules Re-calculation
Legacy vs Broadcom Terms Comparison
Key Changes:
- 16-core minimum
- vSAN entitlements
- NSX/HCX rules
Bundle Simulation
VCF vs VVF Cost & Feature Analysis
VCF Scenario
Full stack + 1TB/core
VVF Scenario
Compute + 0.25TB/core
Risk Analysis
3-5 Year Cost & Compliance Impact
Exposure Analysis:
- Audit penalties
- Uplift costs
- Growth projections
Strategic Roadmap
Optimized Licensing Strategy & Negotiation Plan
- Multi-million savings
Audit protection
Cost optimization
Typical TimelineVCF vs VVF Bundle Analysis
Comprehensive comparison of VMware Cloud Foundation and vSphere Foundation licensing models
VMware Cloud Foundation
Full Stack Solution
Complete infrastructure stackEnterprise-grade featuresStorage & network intensiveVMware vSphere Foundation
Compute Focused
Core virtualization platformLower entry cost
Compute workloadsFeature-by-Feature Comparison
Storage Capacity
VCF provides 4x more vSAN storage per core
VCF
VVFNSX Networking
Network virtualization licensing approach
VCFVVFHCX Migration
Hybrid cloud extension capabilities
VCFVVFCore Minimum
Broadcom's minimum licensing rule
VCFVVFBase Cost
Starting price point comparison
VCFVVF
Strategic Decision Framework
Choose VCF When:
- High storage requirements (>0.25 TiB/core)
- Network virtualization is essential
- Need hybrid cloud capabilities
- Full-stack solution preference
Choose VVF When:
Primarily compute workloads- Lower storage requirements
- Budget-conscious approach
- Flexible feature adoption
Our 5-Phase Approach
Phase 1 — Inventory Normalization & Legacy Metric Baseline
We start by collecting product and workload data from RVTools, vCollector, and other environment sources. This information is normalized into a unified metric set to establish a precise baseline for comparison.
Phase 2 — Legacy vs New Rules Re-Calculation
We re-evaluate your environment against current licensing terms, including vSAN entitlements, NSX rules, and the 16-core minimum. This side-by-side analysis reveals where uplift is required.
Phase 3 — Comparative Bundle Simulations
We run simulation models to see how your environment maps under both VCF and VVF bundles. If a product is no longer sold, we recommend retiring it to avoid unnecessary costs.
Phase 4 — Risk & Cost Delta Analysis
We perform a compliance and financial gap analysis, quantifying exposure, identifying one-time uplift costs, and projecting 3–5 year cost exposure based on growth and workload shifts.
Phase 5 — Tailored Roadmap & Recommendations
Finally, we deliver a defensible licensing strategy. Unnecessary products are eliminated and active workloads are mapped to the optimal bundle based on business fit and financial impact.
What You Get
Accurate Cost Projections
3-5 year financial impact analysis with precise bundle alignment
Risk Mitigation
Compliance gap identification and audit risk elimination
Strategic Roadmap
Long-term licensing strategy that grows with your business
🚀 Ready to Optimize Your VMware Licensing Strategy?
Maximize your VMware Investment with LDS
End-to-End VMware License Management Framework
The Challenge
VMware renewals under Broadcom are no longer a simple formality. They're complex, high-stakes events. Walking in without clarity on licenses, usage, and Broadcom expectations risks overpaying, audit failures, or losing leverage.
LDS Solution
We don't just review licenses — we map your environment, uncover hidden risks, and give you strategic advantage in every renewal discussion. Complete visibility, strategic intelligence, negotiation power.
Audit Defense
Compliance Ready
Proactive compliance mapping
License Mapping
Full Visibility
Complete environment audit
Cost Analysis
Strategic Planning
Perpetual vs subscription models
Negotiation Power
Strategic Advantage
Data-backed positioning
METRICS
Understand Your Full Licensing Footprint
Before you can make any decisions, you need clarity on what you actually own and use. Most organizations rely on old spreadsheet and partial reports or even run vendor-provided scripts — which can expose and weaken your negotiating power. Instead, LDS works with your team to conduct a comprehensive internal audit.
CHALLENGE
Organizations rely on old spreadsheets and partial reports
LDS SOLUTION
Comprehensive internal audit with full environment mapping
KEY ACTIVITIES
RISKS MITIGATED
OUTCOMES DELIVERED
METRICS
Product Fit Analysis
Many organizations still rely on older, standalone VMware products that no longer align with Broadcom's bundled offerings. LDS conducts a detailed SKU and price-list comparison to evaluate whether these legacy products are supported, bundled, or retired under Broadcom's rules.
CHALLENGE
Legacy products misaligned with Broadcom bundles
LDS SOLUTION
Detailed SKU comparison and 3-year cost projection
KEY ACTIVITIES
RISKS MITIGATED
OUTCOMES DELIVERED
METRICS
Effective License Position (ELP)
We don't just deliver a report, we provide actionable intelligence to help you make strategic licensing decisions and avoid costly mistakes. Here's what LDS does in depth: Full Consumption Mapping: We inventory every VMware license, including vSphere, vSAN, NSX, vRealize Suite, and legacy products.
CHALLENGE
Lack of actionable licensing intelligence
LDS SOLUTION
Comprehensive consumption mapping and risk assessment
KEY ACTIVITIES
RISKS MITIGATED
OUTCOMES DELIVERED
METRICS
Negotiating Renewals with Cost Optimization
With your environment fully mapped and your licensing strategy defined, the final battlefield is negotiation. Too many organizations step into renewal talks unprepared — and that's exactly where costs spiral. Vendors know when you're walking in blind. That's when inflated pricing slips through.
CHALLENGE
Walking into renewals unprepared and vulnerable
LDS SOLUTION
Data-driven negotiation with strategic positioning
KEY ACTIVITIES
RISKS MITIGATED
OUTCOMES DELIVERED
Strategic Control Achieved
Your VMware renewal transforms from procedural task to strategic advantage
LDS Cloud Migration Licensing Framework
Moving VMware to the cloud isn't just infrastructure — it's navigating complex licensing rules, cost optimization, and compliance challenges
Assessment
Migration
Optimization
Compliance Defense
Keeping You on the Right Side of the Contract
Moving VMware workloads to the cloud isn't just about infrastructure — it's about whether your licenses are even allowed to move with you. VMware's license mobility rules are strict, and if you don't map your workloads correctly during migration, you could end up out of compliance on day one.
The Risk:
Moving VMs across AWS, Azure, or VMware Cloud Foundation (VCF) means you must understand how your current entitlements apply in the new environment.
LDS Compliance Shield in the Cloud:
LDS runs a full compliance road-map review before you migrate, mapping entitlements against vendor terms, so you don't walk straight into a non-compliance trap. We don't leave it to chance — we stress-test your contracts before the auditors do.
Right-Sizing Defense
VMware Cloud Costs & Density
With VMware Cloud Foundation (VCF), they halved the subscription price, but that doesn't mean you're automatically saving money. If your VMs are oversized or density planning isn't precise, you'll overspend twice as fast in the cloud as you would on-premise.
LDS Right-Sizing Blueprint for Cloud:
LDS conducts a workload and user-demand assessment that identifies what should move, what should stay, and what should retire. The outcome is a right-sized cloud license footprint — lean, compliant, and built to scale. You're not over-provisioned, and you're not under audit fire either.
-
Perform workload density reviews before moving to cloud.
-
Apply cost-modelling to compare on-prem vs. cloud VM economics.
-
Continuously monitor VM sprawl in cloud and hybrid environments.
Optimization Defense
Hybrid & Multi-Cloud Strategy
Cloud licensing looks flexible — until you realize it's riddled with vendor traps: wrong instance types, unnecessary add-ons, double-counting. That's where the bill explodes. Optimization is no longer about "on-prem tuning" it's about running VMware in the most efficient environment at any point in time. But multi-cloud and hybrid strategies increase complexity: each move risks new licensing charges, hidden terms, or stranded costs.
LDS Optimization Playbook in the Cloud:
LDS performs a cloud cost optimization review, analyzing entitlement use, reserved vs. on-demand allocations, and vendor-specific optimization levers. We don't just migrate — we negotiate and configure cloud licensing, so you hit maximum performance with minimum spend. Without optimization, every renewal becomes a bigger liability. With LDS, your cloud spend stays in check.
-
Assess which workloads actually belong in cloud vs. on-prem.
-
Create a cross-cloud licensing roadmap to prevent stranded costs.
-
Run continuous cost-optimization reviews with real-world workload usage data.
Our customers rated us 4.5 for the customer satisfaction
Our clients have saved millions in compliance penalties and optimized their VMware investments
$4.6M savedFacing a VMware compliance report deadline, we discovered our vSAN allocations exceeded licensed capacity... LDS quickly reconciled core counts, remapped vSAN usage, and prepared a compliant report, avoiding $4.6 million in potential audit exposure.
$3.9M savedA review of our VMware estate revealed we were using vSAN capacity across clusters without corresponding VCF core entitlements... LDS performed a full entitlement-to-usage mapping... saving $3.9 million in potential audit penalties and ongoing subscription costs.
$3.2M savedWe missed a 180-day VMware compliance reporting cycle due to an internal tracking gap... LDS implemented automated reporting workflows, validated data accuracy, and trained our teams — restoring compliance and averting an estimated $3.2 million in potential penalties.
$3.2M savedWe missed a 180-day VMware compliance reporting cycle due to an internal tracking gap, risking loss of management features and audit scrutiny. LDS implemented automated reporting workflows, validated data accuracy, and trained our teams — restoring compliance and averting an estimated $3.2 million in potential penalties and remediation costs.
$5.1M savedA pre-audit check revealed our VMware Cloud Foundation components were deployed across additional clusters without matching core licenses, violating portability rules. LDS conducted a detailed compliance audit, aligned licensing with deployment, and negotiated with VMware to resolve the issue — avoiding $5.1 million in audit exposure.
$3.7M savedDuring a quarterly audit preparation, we uncovered that our VMware Horizon deployments were using concurrent connections beyond licensed limits, especially across disaster recovery sites. LDS audited connection usage, optimized our pool assignments, and restructured entitlements to match DR configurations — preventing $3.7 million in projected audit penalties.
$2.9M savedWhile migrating workloads to a hybrid VMware environment, we unintentionally double-counted CPU cores in both on-premises and cloud clusters, inflating our licensing requirement. LDS identified overlap, removed redundant allocations, and recalculated entitlement needs — reducing costs by $2.9 million and ensuring ongoing compliance.
Success Story
Real-world results from our license optimization services
Healthcare Technology Provider
Cost Avoidance Through VMware License Optimization and Audit Defense
Challenge
A U.S.-based healthcare technology provider with 9,500+ employees faced multiple VMware compliance and cost exposure risks:
- Unlicensed ESXi hosts running in production, flagged during an internal review.
- vSphere license mismatches across clusters, leading to potential audit penalties.
- Overprovisioned vSAN storage capacity without matching license coverage.
- Lack of visibility into Horizon VDI usage, creating compliance gaps for concurrent connections.
- Expired SnS (Support and Subscription) agreements, limiting upgrade rights and increasing renewal costs.
The organization received an official License Verification Request from VMware and realized its IT asset management team lacked the specialized licensing expertise to reconcile entitlements, validate deployments, and defend its position before VMware escalated the matter.
Solution
Licensing Data Solutions (LDS) was engaged to perform a comprehensive VMware license optimization and compliance risk mitigation project.
Key activities included:
- Full entitlement normalization across VMware vSphere, vSAN, NSX, and Horizon licenses.
- Deployment-wide host-to-license mapping to detect unlicensed ESXi servers.
- Cluster-level optimization to align CPU core counts and editions with entitlements.
- Horizon concurrent user (CCU) analysis to ensure compliance with active session counts.
- Remediation of overprovisioned vSAN capacity to avoid retroactive charges.
- SnS renewal analysis to ensure upgrade rights and avoid backdated fees.
- Creation of a complete VMware audit defense package with deployment, entitlement, and SnS status reports.
- Support during vendor negotiations to secure favorable true-up terms.
Results
By correcting edition mismatches, reclaiming unused Horizon licenses, and remediating vSAN over-licensing before the VMware audit.
With validated entitlement and deployment data, supported by an accurate Effective License Position (ELP).
Through precise host mapping, concurrent user validation, and removal of excess SnS coverage.
By implementing regular license reconciliation and core-based tracking across VMware infrastructure.
Frequently Asked Questions
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Contact us today to learn how we can support your Software Asset Management goals—with clarity, control, and confidence.
Audit DefenseCost Optimization
Flexera Implementation
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