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Packaging and pricing for VMware by Broadcom

Packaging and pricing for VMware by Broadcom

Broadcom announced several changes to the packaging and pricing of the VMware® portfolio that are effective on 1 May 2024. Cloud service providers, including IBM Cloud®, can no longer sell individual VMware software solutions. These solutions are available only as part of VMware Cloud Foundation™, for which Broadcom announced a new pricing structure.

Starting on 1 May 2024, IBM Cloud is changing its IBM Cloud for VMware Solutions portfolio and pricing in response to the VMware portfolio changes.

Packaging and naming for offerings

Existing VMware Solutions offerings are no longer available as separate components and are replaced by VMware Cloud Foundation. As a VMware Solutions user, you will see these changes in the IBM Cloud catalog and invoices.

The following table shows the changes of the offering names across the VMware Solutions portfolio:

Table 1. Current and updated offering names
Current offering Updated offering
VMware as a Service VMware Cloud Foundation as a Service or VCF as a Service
VMware Cloud Foundation VMware Cloud Foundation for VPC or VCF for VPC
VMware vCenter Server® VMware Cloud Foundation for Classic - Automated or VCF for Classic - Automated
VMware vSphere® VMware Cloud Foundation for Classic - Flexible or VCF for Classic - Flexible
VMware Shared VMware Shared (no change)
This offering is reaching End of Support.
VMware ESXi™ on Bare Metal for Classic VMware ESXi on Bare Metal for Classic (no name change)
VMware ESXi on Bare Metal for VPC VMware ESXi on Bare Metal for VPC (no name change)
This offering is reaching End of Support.

Pricing considerations

For the most up-to-date pricing information, you can create a cost estimate by clicking Add to estimate from the provisioning page.

  • For VMware Cloud Foundation as a Service customers, discounts are available for longer-term commitments. For more information, contact your IBM Sales representative.
  • VMware Cloud Foundation (for Classic and for VPC Bare Metal Servers) is charged at a flexible, on-demand rate of $38 per core and per month with a minimum of 16 cores per CPU. Discounts are available for longer-term commitments.
  • For existing VMware Cloud Foundation for VPC customers, this change represents a price reduction.
  • Starting on 1 May 2024, the VMware Solutions Support and Services fee is removed.

Licensing impact to existing users

If you are using BYOL (Bring Your Own License) for all VMware software licenses in your instance, this change does not impact you. However, if you are using VMware licenses that are provided by IBM or a mix of IBM-provided licenses and BYOL, you are updated to VMware Cloud Foundation on 1 May 2024 and billed at its pricing.

If you are using VMware vSphere, VMware vCenter Server, or VMware ESXi on Bare Metal for Classic, you are updated to VMware Cloud Foundation on 1 May 2024 and billed at its pricing.

You are entitled to the following VMware software products that are included in the VMware Cloud Foundation bundle:

  • vSphere Enterprise Plus
  • vCenter Server Standard
  • VMware vSAN Enterprise
  • VMware NSX Enterprise Plus
  • VMware Aria Suite Enterprise
  • VMware HCX Enterprise
  • VMware Tanzu Kubernetes Grid
  • VMware Data Services Manager

If you need access to a VMware software product or edition that you are entitled to with VMware Cloud Foundation, contact your IBM Business Partner representative or IBM Support.