Broadcom VMware Licensing Changes: What Oracle Cloud VMware Solution Customers Need to Know

Transitioning to Oracle Cloud VMware Solution’s BYOL Model

As of March 2026, Oracle Cloud VMware Solution (OCVS) will transition to a Bring Your Own License (BYOL) model, aligning with Broadcom’s updated licensing framework. This change allows customers to continue running VMware workloads on Oracle Cloud Infrastructure (OCI) while managing their own VMware licenses.

Transition Timeline

  • January 20 – March 20, 2026: No immediate changes; existing license-included SDDCs operate as usual. Customers can deploy new license-included SDDCs and scale existing ones.

  • March 21 – May 19, 2026: License-included monthly, 1-year, and 3-year SKUs are discontinued. New SDDCs must be deployed using BYOL. Existing SDDCs continue operating but can only scale using hourly license-included hosts.

  • Starting May 20, 2026: BYOL becomes mandatory for all new SDDCs and host additions.

Action Steps

  • For Existing SDDCs: Continue operations without disruption. Plan for a host-by-host transition to BYOL as commitments expire.

  • For New Deployments: Prepare to procure VMware licenses through Broadcom or authorized partners to deploy new SDDCs under the BYOL model.

This structured transition ensures minimal disruption and provides clear timelines for customers to adapt to the BYOL model.

For detailed guidance, refer to the official Oracle announcement: Evolving Oracle Cloud VMware Solution for Broadcom’s BYOL Model.