Over the last two decades, VMware seemed to be the golden goose of enterprise virtualization. The untouchable prince, protected by a moat of adoption and brand recognition, that no one dared question. Its products helped teams to abstract hardware in a way that, for the most part, just worked, and for many organizations, VMware became synonymous with reliability and control.

But things have changed.

Since Broadcom's acquisition of VMware in late 2023, licensing has transformed dramatically—from a flexible, à-la-carte model into monolithic subscription bundles that have caught many organizations off guard.

Some of the most controversial changes:

• End of perpetual licenses: VMware phased out traditional perpetual licenses in favor of subscription-only bundles like VMware Cloud Foundation (VCF) and vSphere Foundation (VVF), officially closing off legacy options in early 2024 (Licenseware , Colocation Plus ).

• Huge price increases: Customers have reported sticker shocks: price jumps between 150% to 1,000%, and in extreme cases up to 10x or more, depending on how legacy support and minimums were applied (Equal Experts ).

• New minimum core requirements: In early 2025, Broadcom attempted to institute a 72-core minimum per server for licensing, even if the physical hardware had far fewer cores. This would have drastically inflated costs for small and mid-size deployments. Following widespread backlash, the requirement was rolled back to the previous 16-core minimum (Ynvolve ).

• Late-renewal penalties and long-term lock-ins: The new model penalizes missed renewal dates with up to a 20% surcharge and pushes buyers into 3-5 year contract terms, cutting off flexibility for changing business needs (Colocation Plus ).

Feedback from the field has been intense.

On Reddit, one long-time VMware user described the licensing updates as a “cluster$&*#,” saying they were locked out from accessing expired licenses and received zero response when requesting renewal quotes:

"I … got zero response. … VMware and Broadcom merging/migrating seems like such a cluster$&*# at this point. I'm super pissed off … fully disrespected as a customer." (Reddit )

On a corporate level, the Dutch government agency RWS went to court when Broadcom refused a reasonable support proposal. They initially faced an 85% list price increase, which ultimately forced RWS to pursue legal action. A Dutch court later ruled in favor of RWS, mandating Broadcom honor perpetual license support—with penalties of up to €250,000/day if they fail (NetworkWorld ).

Meanwhile, European cloud providers under the CISPE (Cloud Infrastructure Service Providers in Europe) alliance formally filed complaints with the EU. They cited licensing hikes “up to 15x,” forced multi-year subscriptions, cancellation of reseller programs, and expedited contract terminations—arguing Broadcom violated competition laws under European regulation (CRN ).

I think it's safe to say that the main thing technology leaders are looking for in a VMware alternative is a vendor that will treat them as a partner, not just another revenue stream.

Today, we'll walk through what to look for in a replacement platform, compare leading options, and offer a clear view of where each one excels — including a modern orchestration platform called Cycle.io that was purpose-built for the needs of post-VMware infrastructure.

What to Look for in a VMware Alternative

Once you've come to terms with VMware's new reality, the question becomes: what matters most in a replacement? Every team has different goals, but these five principles have consistently emerged in conversations with infrastructure leads as they rethink their virtualization strategy.

• Clear Pricing, No Surprises Per-core minimums, bundle lock-ins, and late renewal penalties have made licensing a minefield. Look for platforms with transparent pricing and modular adoption, so you're not punished for scaling down or switching later.

• Bare-Metal and Hybrid Flexibility Whether you run in colo, on-prem, or across regions, you shouldn't need separate systems or overhead-heavy clustering tools. The right alternative should give you one way to manage infrastructure, wherever it lives.

• Cloud-Native Compatibility VMs and legacy will always be around. That being said, more modern workloads demand automation, API access, and container-native pipelines. Your next platform should support both worlds.

• Operational Simplicity, Not Downgrades Many teams fear trading complexity for something less capable. The best options simplify routine ops without stripping out observability, automation hooks, or control where it counts.

• Support for Private and Regulated Workloads If you're running sensitive workloads, look beyond "can I host it" and ask: does this platform offer isolation, region-aware automation, and governance features that won't require a dozen plugins?

1. Cycle.io: The Modern Alternative for Full Stack Orchestration

Cycle comes in as one of the most wallet-friendly VMware alternatives on the market. It simplifies your stack while eliminating the need for ESXi, vSphere, vCenter, NSX, and Tanzu add-ons. If you're looking to walk away from the Broadcom tax without spinning up a Frankenstein replacement, Cycle is worth a close look.

Where VMware relies on a traditional hypervisor model paired with a full stack of interdependent components, Cycle takes a different route. It runs a managed hybrid SaaS/PaaS control plane that orchestrates VMs, containers, and functions — all in one interface, with built-in automation and workload portability.

There's no hypervisor to license. No cluster manager to stand up. No separate systems for different workload types. Just a clean platform designed for modern infrastructure teams that want control without complexity.

Best for:

Teams building on private, hybrid, hyperscalar, or bare-metal clouds who want to reduce operational overhead without sacrificing flexibility or developer experience.

Key Capabilities

• Runs Containers, VMs, and Functions Together
  One control plane for everything. No bolt-ons or workload silos.

• Cloud-Native Workflows Without Kubernetes
  Automate deployments, manage images, and build pipelines — no clusters to manage or YAML to untangle.

• Multi-Region and Hybrid Cloud Automation
  Add compute from anywhere. Cycle natively automates all pieces of the provisioning, networking, and update process.

• Simplifies Private Cloud
  Especially for teams building on raw infrastructure. Cycle brings automation, visibility, and modern orchestration to environments that usually get left behind.

• Dev and Ops Friendly by Default
  APIs and UI all work seamlessly. Reduce friction in an environment where developers can ship, ops can automate, and everything can be accomplished without waiting on the platform team or a single stakeholder roadblock.

Cycle isn't trying to replace VMware piece by piece. It is built for teams who are ready to move on, not just from a vendor but from the complexity that has built up around traditional virtualization. If you are looking for a simpler way to manage infrastructure across environments without giving up flexibility or control, Cycle is worth a closer look.

2. Proxmox VE: Open Source, Lightweight, and Accessible

Proxmox VE has quietly become a solid option for teams that want a simple, dependable alternative to VMware, and has a good reputation in the bare metal community. It's built on Debian, combines KVM for virtualization and LXC for containers, and comes with a straightforward web interface that makes day-to-day management more approachable than peers without.

Out of the box, the product offers clustering support, high availability, and native ZFS integration. There's nothing flashy here, but that's kind of the point. Proxmox is clean and stays out of your way. For teams with deep Linux chops who want full control over how things run, it strikes a balance between capability and maintainability.

Best For

Teams that want to have more control than they did with VMware, but don't want something as serious to maintain as OpenStack or the like. Proxmox can work for labs, SMBs, and infrastructure teams who prefer open systems they can control and tune as needed.

Key Capabilities

• Full Virtualization and Containers in One
  Run VMs and LXC containers side by side, managed through a single interface.

• Clustering and High Availability Built In
  Proxmox includes native tools for HA and live migration, without requiring third-party plugins.

• ZFS Support Out of the Box
  Take advantage of snapshots, replication, and storage flexibility with native ZFS integration.

• Open Source All the Way Down
  There are no proprietary pieces. You get full access to the underlying system, and commercial support is optional.

• Works Well on Bare Metal
  Setup is fast, and the system runs lean. It's a favorite in homelabs for a reason.

Where It Might Fall Short

Proxmox isn't built for hybrid or multi-cloud orchestration. It lacks the automation, APIs, and workload portability you'd get from platforms like Cycle. And while the web UI works well, it can feel limited if you're managing infrastructure at a larger scale.

3. Nutanix AHV: Enterprise-Grade Hyperconvergence

Nutanix AHV is the hypervisor baked into the Nutanix ecosystem. It's not a drop-in VMware replacement so much as a tightly integrated part of Nutanix's full-stack hyperconverged infrastructure (HCI) offering. This model best serves large IT teams that want an all-in-one environment with minimal integration overhead and are already using Nutanix.

AHV is KVM-based, under the hood, but managed entirely through Nutanix Prism, which also handles storage, networking, and compute from a centralized interface. The result is a workable experience that feels more like managing a platform than stitching together infrastructure.

That said, the tradeoff is flexibility. Adopting AHV usually means adopting most or all of the Nutanix stack, including their storage fabric and control plane. If you're already standardized on Nutanix, it can be a smooth transition. If not, it's a commitment.

Best For

Enterprises that already run Nutanix, or that are looking for a highly integrated virtualization and storage solution where everything is managed as a single platform. Particularly useful in traditional IT environments with strong alignment to centralized operations.

Key Capabilities

• Deep Prism Integration
  Manage hypervisors, storage, networking, and VMs through one interface.

• Simplified Lifecycle Management
  Handle upgrades, scaling, and resource provisioning without external tooling.

• Enterprise Features Included
  High availability, snapshots, DR, and VM replication are built into the stack.

• KVM-Based, but Fully Abstracted
  Users rarely need to interact with KVM directly — it's all handled through Prism.

• Designed for Scale
  Built for multi-node clusters and large data center environments.

Where It Might Fall Short

Nutanix AHV isn't ideal for teams that want flexibility or piecemeal adoption. It requires that you go all-in on the Nutanix ecosystem. It's also less suited for container-first or cloud-native teams, since it remains focused on virtual machines and traditional infrastructure patterns.

4. OpenStack: Full Control, Heavy Lift

OpenStack is probably the most flexible and extensible VMware alternative on the market, and also the most complex. It's an open-source cloud platform made up of dozens of modular services that handle everything from compute and networking to identity management and orchestration.

That modularity is what makes OpenStack so powerful. If you have the time, people, and operational tolerance, you can build a private cloud that rivals the feature set of Linode or Digital Ocean. You can swap in your own storage backend, customize your hypervisor layer, and integrate tightly with internal tooling.

OpenStack isn't light. Even a small deployment can take significant effort to get stable. Ongoing maintenance, upgrades, and service debugging all require deep expertise. For that reason, OpenStack tends to be a fit for large organizations that already have dedicated infrastructure teams and a clear reason to control every layer of the stack.

Best For

Large enterprises, government agencies, and telecom providers that need to build and operate their own IaaS layer. Especially useful where vendor neutrality, deep customization, or regulatory requirements make public cloud or commercial alternatives a poor fit.

Key Capabilities

• Highly Modular Architecture
  Compute, storage, networking, orchestration, and identity — all separate services you can compose to fit your needs.

• Multi-Tenant and Multi-Region Support
  Designed for complex organizations with role-based access, usage quotas, and federated regions.

• Hypervisor Agnostic
  Supports KVM by default, but can work with VMware, Xen, or even bare metal through Ironic.

• Massive Ecosystem and Vendor Support
  Backed by a broad ecosystem of drivers, plugins, and managed service providers.

• Built for Private Cloud at Scale
  Powering private clouds for organizations like CERN, Walmart Labs, and AT&T.

Where It Might Fall Short

OpenStack requires significant expertise and operational overhead. Even well-funded teams can find themselves overwhelmed by the complexity, especially if they're trying to integrate it with modern developer workflows or automation pipelines. For most organizations, it's not a drop-in VMware replacement — it's a long-term infrastructure project.

5. Microsoft Hyper-V: Stable, Familiar, and Windows-Centric

Hyper-V is Microsoft's long-standing virtualization platform, built into Windows Server and available as a standalone hypervisor through Hyper-V Server (although the standalone edition is now deprecated). For teams deeply invested in the Microsoft ecosystem, Hyper-V offers a straightforward, cost-effective way to virtualize infrastructure without adding a new vendor to the stack.

It integrates cleanly with Active Directory, Windows Admin Center, and System Center. That tight coupling makes it easy for traditional IT teams to manage VMs using tools they already know, and for organizations that are already licensing Windows Server, the marginal cost of using Hyper-V is often negligible.

But Hyper-V is largely a traditional hypervisor. It doesn't offer much in the way of modern orchestration, container-native workflows, or cross-environment automation. Microsoft has focused most of its cloud-native investment into Azure, not Hyper-V — so while it remains a solid option for Windows-heavy shops, it hasn't evolved much for the broader world of hybrid infrastructure.

Best For

Organizations that already run Windows Server across the board and want simple, integrated virtualization without introducing new tools. Often a good fit for IT teams managing traditional workloads in on-prem or co-located environments.

Key Capabilities

• Deep Integration with Windows Tools
  Works natively with Active Directory, Windows Admin Center, and System Center.

• Included with Windows Server
  No separate licensing required in most scenarios, making it budget-friendly for existing Microsoft customers.

• Mature and Battle-Tested
  Hyper-V has been in production since 2008 and continues to receive maintenance updates.

• Support for Nested Virtualization and GPU Passthrough
  Useful for lab environments, testing, and virtualization inside VMs.

• Well-Suited for Traditional Workloads
  Designed for running Windows-based applications and infrastructure reliably.

Where It Might Fall Short

Hyper-V is not designed for modern hybrid cloud or container-based infrastructure. It lacks first-class support for Linux container workflows, API-driven orchestration, or multi-cloud provisioning. And because Microsoft's energy is now focused on Azure, Hyper-V's innovation pace has slowed. For teams modernizing their stack, it may not offer enough headroom.

Wrapping up

The right platform will match your organization's workloads, compute, and operational goals. For some, that might mean building something from the ground up and investing millions. For others, it could mean moving further into their current vendor stack with Nutanix or Microsoft.

But for teams that want to rethink how infrastructure is managed, not just who manages it, Cycle offers a modern path forward. It doesn't carry the weight of legacy assumptions and doesn't require teams to compromise flexibility for simplicity.

Where you land depends on what you're solving for, but the good news is, there are real options on the table!