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Oracle adds VMware licence portability to cloud VCF

Fri, 23rd Jan 2026

Oracle has updated Oracle Cloud VMware Solution to support Broadcom's VMware Cloud Foundation licence portability model, letting customers use eligible existing subscriptions when running VMware workloads on Oracle Cloud Infrastructure.

The change shifts how VMware Cloud Foundation software gets licensed for the Oracle-managed VMware service. Under the updated model, customers license the VMware software through their own eligible VMware Cloud Foundation subscription entitlements bought from Broadcom or an authorised reseller.

Oracle Cloud VMware Solution runs VMware environments on dedicated infrastructure within Oracle Cloud Infrastructure. Oracle positions the update as a way for customers to manage VMware licensing across on-premises and cloud environments under the same entitlement approach.

Licensing Model

Broadcom has introduced a licence portability entitlement model for VMware Cloud Foundation subscriptions. Oracle said its service now aligns with that approach for customers running VMware on Oracle Cloud Infrastructure.

Oracle said customers can apply eligible VMware Cloud Foundation subscription entitlements when they deploy VMware workloads on Oracle Cloud Infrastructure. The company also said customers can keep the operational model they already use across on-premises, hybrid and Oracle Cloud Infrastructure environments.

The update affects licensing rather than the underlying service structure. Oracle said Oracle Cloud VMware Solution will continue to run on dedicated infrastructure. It also said customers will see the same operational experience they use today.

Transition Plans

Oracle said it will work with customers during the transition. It said existing environments will continue to operate without disruption during the move to the new licensing model.

Oracle said the transition will depend on each customer's environment, readiness and timing. It also said customers will receive a supported path for future deployments and renewals as the updated model rolls out.

"Oracle Cloud VMware Solution is built to give customers choice without compromise. This update reaffirms our commitment to protecting customer investments while delivering the performance, isolation, and control they expect from OCI," said K. Papamiltiadis, Oracle SVP - OCI Partnerships, Oracle.

Partner Positioning

Broadcom said it is working with Oracle on the transition and on integration between VMware Cloud Foundation and Oracle Cloud VMware Solution. Broadcom has focused its VMware strategy on VMware Cloud Foundation as a core platform for private cloud deployments.

"Our collaboration with Oracle will further empower customers to extend their modern private clouds to public cloud infrastructure, by enabling further integrations between VCF and Oracle Cloud VMware Solution. With VCF license portability, Broadcom empowers customers with a single, unified private cloud platform that supports all applications - from traditional to modern and AI-based - with a consistent experience across their data centers, edge, and Oracle Cloud infrastructure," said Abhay Kumar, Global Head of Managed Services in the VCF Division of Broadcom, Broadcom.

Market Impact

Oracle Cloud VMware Solution forms part of a broader set of offerings from cloud providers and partners that host VMware environments for customers that want to move workloads to the cloud without changing virtualisation tools and processes. Licensing terms and portability have become a key factor for customers planning hybrid cloud architectures, particularly where on-premises estates and cloud deployments need to run under consistent entitlement rules.

Oracle framed the change as a way for customers to simplify how they handle licensing management across environments and to keep operational consistency between on-premises VMware deployments and Oracle Cloud Infrastructure. The company also said customers can continue using dedicated VMware infrastructure on Oracle Cloud Infrastructure under the updated model.

Oracle said it will issue additional updates through its official channels as general availability approaches.