I'm looking for advice on a situation I'm dealing with as a small Managed Service Provider (MSP). We've been operating with a straightforward setup using four VMware ESX servers and a standard vCenter since purchasing our perpetual licenses back in 2018, last extending them in March 2022. These licenses expired in March 2025, and I'm fine with that since we're moving to a public cloud. Recently, I received a letter from the only authorized VMware distributor in the Netherlands, demanding that we switch to VCF licenses, which I feel we don't necessarily need. I'm curious if we're legally required to comply. We've always just extended our existing perpetual licenses and never upgraded to a Cloud Service Provider subscription model. Technically, we've been using our licenses beyond their expiration. Am I in violation of the End User License Agreement (EULA), or can I simply respond by stating we're not interested? Is there any real legal pressure they can apply, or is this just a tactic? I'm sure I'm not alone in this predicament.
3 Answers
You're correct that VMware is likely checking if you’re using a legitimate version. If you lost your support and have moved on software-wise, that could put you at risk if they're looking for compliance. If you feel cornered, inform them that you're transitioning away from VMware. Many smaller MSPs find that's a viable route, and VMware likely won't send auditors your way unless you're really large.
It sounds like you're in a complex situation but don't worry too much just yet. It may come down to contract specifics, but usually, if you're still within the terms of your original perpetual licenses and haven’t signed anything new requiring a switch, you might be okay. It's not uncommon for vendors to push renewals or upgrades, but legal action can be rare, especially against a small entity like yours. My suggestion? Have a lawyer review your contract and be prepared to push back if necessary.
Renewing support doesn't mean renewing your actual licenses. With perpetual licenses, you're not obligated to upgrade unless your contract specifically states that. They might think they can pressure you into switching to a subscription model, but keep in mind that version numbers and maintenance periods usually don't apply to perpetual licenses in the same way. Best approach? Consult a lawyer and keep using what you’ve legally got.
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