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 evolve – with big implications for Kiwi SMEs that rely on stable, cost-effective virtual infrastructure.
What’s Changed?
No more perpetual licences – All VMware products are now subscription-only. If you don’t renew, you lose access to manage or update your environment, effectively locking you out of your own systems. Learn more here.
Continuous price hikes – Annual licensing costs for many businesses have jumped 300–500%, with some seeing increases of over 1000% due to new minimum core licensing requirements and bundled pricing structures.
Product range slashed – VMware now offers only two enterprise-focused bundles, with no tier designed for small to mid-sized businesses. The simplified offering limits flexibility for businesses who don’t need enterprise-level features.
APAC Edition limitations – Lower-cost editions of vSphere can no longer be purchased in the APAC region, further disadvantaging New Zealand businesses that operate on leaner IT budgets.
New per-core licensing model – Each CPU must now be licensed for a minimum of 16 cores, with a required order minimum of 72 cores. This is overkill for many local businesses and inflates total cost of ownership dramatically.
25% reinstatement fees – If you miss your subscription renewal window, you could be hit with a 25% reinstatement penalty just to get current again.
These changes are leaving many businesses stuck between a rock and a hard place: either absorb the dramatically increased costs or continue running on outdated, unsupported infrastructure – risking compliance and stability in the process.
What This Means for Kiwi SMEs
This one-size-fits-all approach simply doesn’t work for most New Zealand businesses. Licensing costs are unpredictable, features are being removed, and the risk of vendor lock-in is growing. Many IT managers and business owners are now reviewing their future with VMware and actively evaluating alternative platforms that offer greater flexibility, transparency, and support.
It’s also worth noting that businesses facing renewals in 2025 may see further pricing or licensing changes. If you’re unsure how these updates will impact your current environment, now is the time to explore your options.
BTG Has You Covered for VMWare Alternatives.
At BTG, we’ve been tracking this situation from day one. We’ve tested and validated fully functional VMware alternatives that are tailored specifically for the needs of New Zealand businesses – especially SMEs who require robust virtualisation but without the inflated licensing costs and rigid vendor constraints.
Whether you’re running VMware ESXi, vCenter, or using vSAN, our team can assess compatibility and offer a like-for-like replacement without sacrificing performance or visibility. We’ll guide you through every step — from discovery and migration to support and optimisation.
Here’s what we offer:
- ✅ Predictable costs – Transparent, stable pricing with no hidden fees, tailored to your business size and usage
- ✅ No lock-in – Full flexibility to scale or switch providers without long-term contracts or penalties
- ✅ Local support and implementation – Delivered by our experienced NZ-based engineers who understand your environment
- ✅ Full feature set – Compatible with your existing VMware setup, including clustering, snapshots, and live migration
- ✅ Tailored solutions – Every business is different, so we design solutions that fit your infrastructure, goals, and budget
We’re already helping organisations make the switch, with minimal disruption and measurable long-term savings. Whether you’re planning for renewal or rethinking your virtualisation strategy entirely, BTG can help.
Ready to move away from uncertainty? Let’s chat.
Many New Zealand businesses are already rethinking their virtualisation strategy to futureproof operations. Whether you’re cloud-first, hybrid, or on-premise, BTG can help you design a solution that aligns with your growth, compliance, and budget goals.
BTG can help you assess your options and plan your next steps.
Contact us to understand your alternatives.
