VMware ESXi hypervisor licensing changes and the alternatives
News|by Leanne Bevan|5 February 2024
In late 2023, Broadcom acquired VMware. As expected with most software company acquisitions, it's since been announced that some product and licensing changes are coming into effect soon. Some products will be discontinued whilst others that were once free will move to a subscription-based model.
This includes the popular Type 1 hypervisor, VMware ESXi.
VMware ESXi is an enterprise-class, bare-metal hypervisor developed by VMware for deploying and serving virtual machines. A hypervisor, also known as a virtual machine monitor (VMM), is a software program that allows multiple operating systems to share a single set of physical hardware resources.
Type 1 hypervisors run directly on physical hardware without the need for an operating system.
What does that mean for you?
If you are an existing customer, you can keep using VMware ESXi as well as receive active VMware support until your current contract is up for renewal. You must then pay a subscription fee to continue using ESXi or an equivalent VMware product. We're a VMware reseller. We'll be on hand to support you with any VMware licensing requirements you have.
If you wish to consider the alternatives to VMware ESXi, then take a look at our breakdown below...
The alternatives
Virtuozzo
A container-based virtualisation platform that offers both containers and virtual machines (VMs). It's known for its efficient use of resources and its ability to isolate workloads.
Is there a cost? - Yes - we're a Virtuozzo reseller and can provide pricing and licensing advice.
Best for: Businesses that need to run a mix of containerised and traditional VM workloads.
Microsoft Hyper-V
A free hypervisor included with Windows Server that offers many of the same features as ESXi. You can run a mix of containerised and traditional VM workloads.
Is there a cost? - Yes (if using Windows Server). We're a long-standing Microsoft Partner and can support you with Windows Server licensing.
Best for: Businesses already using Microsoft products.
Citrix Hypervisor (XenServer)
An open-source hypervisor that is based on the Xen Project.
Is there a cost? - Yes; we're a Citrix reseller and can provide licensing and advice on your options.
Best for: Businesses looking for a low-cost, open-source virtualisation solution.
KVM (Kernel-based Virtual Machine)
An open-source hypervisor that is included in the Linux kernel.
Is there a cost? - No, it's free.
Best for: Businesses looking for an open-source virtualisation solution tightly integrated with Linux.
Proxmox VE
An open-source virtualisation platform that is based on KVM and LXC containers.
Is there a cost? - No, it’s free.
Best for: Businesses looking for a free, open-source virtualisation platform that includes both VMs and containers.
OVirt
An open-source virtualisation platform that is based on KVM and is managed by Red Hat.
Is there a cost? No, it’s free. We're a Red Hat reseller - we can provide pricing and licensing advice.
Best for: It is a good choice for businesses that are looking for a free, open-source virtualisation platform that is supported by Red Hat.
Oracle VM Server
A hypervisor from Oracle that is based on VirtualBox.
Is there a cost? No, but you need to have Oracle; we're also an Oracle reseller, so let us know if you require an Oracle licence.
Best for: Businesses already using Oracle products and looking for a free virtualisation solution.
Considerations
The best alternative for you will depend on your specific needs and budget. Consider factors such as:
- Cost: Some alternatives are free, while others are commercial products. For those that have a cost, we can source and compare pricing for you.
- Features: Different alternatives offer different features, such as high availability, disaster recovery, and security.
- Ease of use: Some alternatives are easier to use than others.
- Support: Some alternatives offer more comprehensive support than others.
Contact us to discuss your options
Now you have an idea of all the options available, get in touch if you require pricing for any of the virtualisation solutions mentioned above.
We're a software reseller and service provider here to support your software procurement and technical needs. Fill in the contact form below and a member of our team will reach out to you.
Contact Grey Matter
If you have any questions or want some extra information, complete the form below and one of the team will be in touch ASAP. If you have a specific use case, please let us know and we'll help you find the right solution faster.
By submitting this form you are agreeing to our Privacy Policy and Website Terms of Use.
Author
Leanne Bevan
Vendor Marketing Manager at Grey Matter
Leanne has been part of our team for over a decade, and has worked as a vendor marketing manager for a number of our key vendors. Now with a keen focus on cyber security as well as developer technologies, Leanne continues to manage marketing across several vendors, including Embarcadero, Acronis, ESET, and more.
Related News
ESET special offer: three years for the price of two
ESET has announced a new special offer for Spring 2026. From 1 April to 31 May 2026, when you purchase new licences or upgrade to the higher-tier products, you’ll receive three years of protection for the price of two. ESET...
Agentic AI for software development: JetBrains Central
Agentic AI is changing how software is built. JetBrains Central is how you can stay in control. AI is no longer just helping developers write code. It’s investigating issues, changing code, running tests and executing multi-step workflows – often across multiple IDEs and tools, without human...
VMware alternatives
The virtualisation landscape has shifted dramatically. Once the default choice for data centres, VMware is now facing growing competition as licensing changes following Broadcom’s 2023 acquisition – combined with the rise of specialised workloads – push organisations to explore alternatives. ...
Developer tools shaping 2026: building with confidence
Discover the best development tools that help you build and maintain high-quality software applications.