There is a continuing shift in the virtualisation space, and New Zealand businesses are feeling the impact. Since Broadcom’s acquisition of VMware, pricing models and product offerings have changed dramatically and continue to change – with big implications for Kiwi SMEs.

What’s Changed?

• No more perpetual licences – All VMware products are now subscription-only. If you don’t renew, you lose the ability to manage your environment.
• Continuous price hikes – Annual costs for many businesses have jumped 300–500%, with some cases of increases over 1000% due to new licensing minimums.
• Product range slashed – VMware now offers just two enterprise focussed bundles and no product that suits the SME market.
• APAC VMWare edition limitation – Lower cost Editions of vSphere are no longer able to be purchased in the APAC region.
• New per-core licensing model – Minimum core licensing in place means that each CPU needs to be licenced for 16 cores, with a minimum order number of 72 cores.
• 25% reinstatement fees for late licensing renewal.

These changes are leaving many businesses stuck between a rock and a hard place: Either pay the new licensing costs or risk running on old unsupported platforms.

What This Means for Kiwi SMEs

This one-size-fits-all approach doesn’t work for most New Zealand businesses. Licensing costs are unpredictable, features are being stripped away, and the risk of vendor lock-in is real. Many customers are now reviewing their future with VMware and looking for alternatives that are more stable and transparent.

BTG Has You Covered

At BTG, we’ve been following these changes closely. That’s why we offer a fully functional VMware alternative designed specifically for Kiwi businesses:

• ✅ Predictable costs

• ✅ No lock-in

• ✅ Local support and implementation

• ✅ Full feature set to match your current environment

We’re already helping businesses make the switch – with minimal disruption and long-term savings.

Ready to move away from uncertainty? Let’s chat.

BTG can help you assess your options and plan your next steps.

Contact us to understand your alternatives.