VCF renewals ▲ 31.4% YoY· Symantec EDR true-ups ▲ 18%· Carbon Black avg quote uplift +22%· Mainframe MIPS capacity squeezes ▲· Audit notices ▲ 47% QoQ· Our last 10 deals avg −41% on quote· VCF renewals ▲ 31.4% YoY· Symantec EDR true-ups ▲ 18%· Carbon Black avg quote uplift +22%· Mainframe MIPS capacity squeezes ▲· Audit notices ▲ 47% QoQ· Our last 10 deals avg −41% on quote
Wednesday · 27 May · MMXXVIIssue II
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Broadcom Negotiations
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Three signs your vSAN renewal quote is anchored to phantom capacity.

vSAN quotes routinely include capacity the buyer no longer uses. Three audit moves, drawn from live 2026 renewals, surface the phantom number and bring the quote back to the cluster the buyer actually runs.

vSAN renewals across the 2026 book are anchoring against capacity numbers that overstate what the buyer's cluster actually carries. The Desk has reviewed 27 vSAN renewals in the first four months of 2026 and the pattern is consistent. The seller's quote engine generates the renewal size from the most recent entitlement record on file. The entitlement record carries the cluster through its lifecycle including expansions, contractions, hardware refreshes, and policy changes. The record is rarely reconciled to the current production state. The result is a renewal quote that prices capacity the buyer has, capacity the buyer no longer has, and capacity the buyer never had in production. This article is the three signs that the phantom is in the quote and the three audit moves that surface it.

Phantom capacity in a vSAN context is not abstract. It is a specific dollar number attached to a specific block of storage that does not exist in the production cluster the buyer is renewing. The three sources of phantom capacity are unretired expansion entitlements, hardware refresh ghosts, and policy class drift. Each one of them has a different surface. Each one of them is corrected with a different document. All three together are typically worth between 12 and 23 percent of the renewal quote on the median 2026 estate.

Sign one: the quote references an entitlement larger than the running cluster

The first sign is the simplest to detect and the most often missed. The renewal quote includes a capacity number. The vSphere management plane reports a capacity number. The two numbers should match within a small tolerance for in flight changes. On the Desk's 2026 book they match in 9 of 27 renewals. In 18 of 27, the quote number is larger than the management plane number by between 4 and 31 percent.

The driver is unretired expansion entitlements. The buyer expanded the cluster temporarily for a project, a migration, or a capacity test. The expansion was retired in production but the entitlement was never written back to the entitlement record. The seller's quote engine reads the high water mark on the entitlement record and prices the renewal against it. The buyer pays for the temporary expansion across the new term.

The audit move is to request the entitlement reconciliation document from the seller's deal desk and compare it line by line to the management plane capacity export. Where the entitlement record exceeds the management plane, the buyer files a written request to write the entitlement down to the production state. The seller's deal desk has the authority to issue the write down. The deal desk does not volunteer it. The buyer asks.

Sign two: the quote prices a hardware generation the cluster no longer runs

The second sign is more procedural. The renewal quote references a hardware specification that matches the cluster as it stood at the prior renewal. The cluster has since been refreshed, with newer hardware delivering higher density per node and lower node count per terabyte of usable capacity. The entitlement record was not updated to reflect the refresh. The quote engine prices the renewal as if the cluster were still running the older hardware, at the older density, at the older node count.

The financial impact of the hardware ghost is asymmetric. It does not change the headline capacity number directly. It changes the unit price the quote engine applies to the capacity number because the per node and per cluster minimums calculate against the older topology. On the Desk's 2026 book, the unit price differential between current and ghost hardware specifications runs between 6 and 14 percent on the median refreshed estate.

"The vSAN renewal quote is a statement about what the seller thinks the buyer's cluster looks like. The buyer's audit is to read the statement back against what the cluster actually looks like. The differential between the two is the phantom. The phantom is always in the buyer's favour to correct."vSAN Engagement Lead, The Desk

The audit move is to provide the current hardware specification export from the cluster management plane and request the quote engine to price against the current topology. The deal desk's response is usually to re run the quote with the corrected topology, on a different concession band, with a lower realised unit price.

Sign three: the quote prices the prior policy class profile, not the current one

The third sign is the least visible. The renewal quote prices storage policies that no longer exist in the cluster, or omits storage policies that have since been introduced. The seller's quote engine reads the policy class profile from the entitlement record. The cluster's actual policy class profile is in the storage policy management plane. The two diverge over the term of any cluster that has had real workload movement. The driver of divergence is policy retirement and policy introduction over the term, neither of which the seller's entitlement record tracks in real time.

The financial impact is the most variable of the three. Where the cluster has retired a high cost policy and introduced a low cost policy, the renewal is being overquoted. Where the inverse is true, the renewal is being underquoted. In 19 of the 27 engagements reviewed in 2026, the cluster had retired more high cost capacity than it introduced over the prior term, resulting in a phantom overquote. The median impact was 7 percent of the renewal value, with a tail of engagements where the impact reached 14 percent.

The audit move is to produce the current storage policy class profile from the cluster management plane, summarised by capacity per class, and to request the quote engine to price against the current profile rather than the entitlement record profile.

How to run all three audits in one conversation

The buyer does not need three separate conversations. The buyer assembles three documents from the cluster management plane: the current capacity export, the current hardware specification export, and the current storage policy class profile. The buyer files one written request to the seller's deal desk asking for the renewal quote to be regenerated against the three current documents. The deal desk's response is either a regenerated quote, which is the win, or a refusal, which surfaces the seller's posture and gives the buyer a documented basis for the rest of the negotiation. Either response is useful. The documents are the move.

vSAN renewals reviewed in 202627
Renewals where quote capacity exceeded running cluster18 of 27
Renewals priced against ghost hardware generation11 of 27
Median buyer side value when all three phantoms corrected18 percent of renewal

What we have seen on live deals

A North America manufacturing buyer brought a 1.8 petabyte vSAN renewal to the Desk in March. The opening quote referenced an entitled capacity of 2.1 petabytes against a running cluster of 1.6 petabytes after a refresh and a contraction the prior year. The hardware generation in the quote was two generations behind current. The storage policy class profile in the quote referenced a mirror class that had been retired 14 months earlier. The Desk filed one written request with the three documents attached. The regenerated quote came back at the corrected capacity, the current hardware generation, and the current policy profile. The renewal cleared at 21 percent below the original quote on the same scope and same term. The buyer changed nothing in the production cluster. The buyer changed the documents the quote was built against.

The takeaway

  • vSAN renewal quotes are built against the entitlement record, not the production cluster. The two diverge over any real term. The divergence is phantom capacity, which the buyer pays for unless the buyer surfaces it.
  • Three documents from the cluster management plane surface the three phantoms: capacity export, hardware specification export, and storage policy class profile. The documents take hours to produce. The seller's deal desk regenerates the quote on receipt.
  • The combined buyer side value of correcting all three phantoms is between 12 and 23 percent of the renewal on the median 2026 estate, with a median of 18 percent. The cost of producing the documents is the lowest cost negotiation move in the vSAN toolkit.
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Three related articles

Cross references. Service: Renewal Negotiation. Practice: vSAN Licensing. Calculator: Renewal quote validator.
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