Broadcom’s VMware Licensing Shake-Up: What Changed with Essentials Plus Kit? 

For over a decade, Broadcom’s vSphere Essentials Plus licensing option served as a cost-effective entry point into VMware’s ecosystem. It supported up to three hosts and 96 cores, and included critical features like: 

• High Availability (HA) 
• vMotion 
• vSphere Replication 

This made it ideal for lean IT teams, branch offices, and disaster recovery scenarios. However, as of late 2024, Broadcom has discontinued Essentials Plus, citing a shift toward a more streamlined, subscription-based portfolio. 

In its place, Broadcom has reintroduced vSphere Enterprise Plus, a high-end SKU that includes: 

• Distributed Resource Scheduler (DRS) 
• Distributed Switches 
• VM Encryption 
• Storage vMotion 

While these features are powerful, they are often overkill for smaller environments and come with a significantly higher price tag. Compounding the issue is the per-core licensing model, which enforces a 16-core minimum per CPU, regardless of actual usage. 

Why This Matters 

The removal of Essentials Plus creates a gap in the market for SMBs and IT departments with modest infrastructure needs. These organizations now face a tough decision: 

• Absorb the cost of Enterprise Plus, even if they don’t need its full feature set. 
• Rearchitect their environment to fit within the constraints of other VMware bundles. 
• Explore alternative hypervisors that better align with their budget and operational needs. 

Should You Stay with VMware? 

There are still valid reasons to stick with VMware, especially for larger enterprises or organizations with complex virtualization needs: 

Pros of Staying with VMware: 

• Mature ecosystem with robust third-party integrations. 
• Advanced features like DRS, VM encryption, and NSX integration. 
• Strong support for hybrid cloud and multi-cloud strategies via VMware Cloud Foundation. 

Cons of Staying: 

• Higher costs, especially under the new per-core model. 
• Complex licensing that may not scale well for smaller environments. 
• Limited flexibility for organizations that don’t need enterprise-grade features. 

Exploring Alternatives: Microsoft Hyper-V 

For organizations reconsidering their virtualization strategy, Microsoft Hyper-V presents a compelling alternative. Included with Windows Server at no additional cost, Hyper-V offers a feature-rich, cost-effective solution for many use cases. 

Key Benefits of Hyper-V: 

1. Cost Efficiency 
   • Hyper-V is bundled with Windows Server, eliminating the need for separate hypervisor licensing. 
   • No per-core licensing model—licensing is tied to the Windows Server edition. 
2. Integration with Microsoft Ecosystem 
   • Seamless integration with Active Directory, System Center, Azure, and Windows Admin Center. 
   • Ideal for organizations already invested in Microsoft technologies. 
3. Robust Feature Set 
   • Live Migration 
   • Replica for disaster recovery 
   • Shielded VMs for enhanced security 
   • Storage Spaces Direct for hyper-converged infrastructure 
4. Scalability 
   • Supports both small and large deployments. 
   • Easily integrates with Azure Stack HCI for hybrid cloud scenarios. 
5. Simplified Management 
   • Windows Admin Center provides a modern, centralized management interface. 
   • PowerShell and System Center offer automation and orchestration capabilities. 

Considerations Before Switching 

While Hyper-V is a strong contender, switching hypervisors is not a trivial task. Here are some factors to weigh: 

• Migration Complexity: Moving from VMware to Hyper-V may require reconfiguring VMs, storage, and networking. 
• Training and Skills: Your IT team may need to upskill on Hyper-V and related tools. 
• Feature Parity: Ensure that Hyper-V meets your specific technical requirements (e.g., clustering, backup, replication). 

Other Alternatives Worth Mentioning 

If Hyper-V doesn’t meet your needs, consider these additional options: 

• Proxmox VE: Open-source, Debian-based virtualization platform with support for KVM and LXC. 
• Nutanix AHV: A hypervisor integrated into Nutanix’s hyper-converged infrastructure platform, ideal for turnkey solutions. 

Final Thoughts 

Broadcom’s decision to retire Essentials Plus licensing and push customers toward Enterprise Plus is a pivotal moment for VMware users, especially SMBs. While VMware remains a powerful platform, the cost and complexity of its new licensing model may prompt many to re-evaluate their virtualization strategy. 

Microsoft Hyper-V stands out as a viable, cost-effective alternative, particularly for organizations already using Windows Server. With strong integration, a solid feature set, and no additional hypervisor licensing costs, Hyper-V offers a practical path forward for many IT teams. 

As always, the best choice depends on your specific environment, budget, and long-term goals. Whether you stay with VMware or explore new horizons, now is the time to assess your infrastructure and make informed decisions. 

Have any questions about what virtualization strategy is best for your business? Please reach out to our experts at any time!