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Effective April 2025, Broadcom will introduce a revised licensing policy for VMware virtualization software, compelling small and medium-sized enterprises (SMEs) to procure at least 72-core CPU licenses upon placing new orders or renewals. This shift marks a departure from the previous socket-based licensing approach and is anticipated to significantly escalate costs for SMEs. Furthermore, customers who delay renewals will face a 20% penalty. This adjustment follows Broadcom's acquisition of VMware and is perceived as a strategic move to redirect focus towards large enterprises. In the server and cloud computing sectors, pricing models based on CPU core count are commonplace, with increased core numbers directly correlating to higher license fees.
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