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
Independent · Buyer SideLive
vSAN Licensing
Inclusion · Allocation · Capacity bands · Mid term protection The clause inside VCF that has moved three times since the acquisition. Not affiliated with Broadcom Inc.
The Lead · Product Brief · vSAN Licensing

vSAN is inside VCF. The question is on what terms.

Two live vSAN allocation reviews this quarter. The inclusion clause inside VCF has been rewritten three times since the acquisition. Most buyers are pricing the old version.

vSAN is bundled inside VCF, but the way it is bundled is not the same as it was twelve months ago. Allocation rules, capacity bands, and the treatment of stretched clusters have each moved at least once since the acquisition closed. Quotes still arrive priced as if none of that changed. The desk's first job on a vSAN review is to read the current paper, not the paper the buyer signed last cycle.

The economics turn on three questions. How many cores actually need vSAN at the tier the bundle assumes. Whether the buyer is being charged for capacity bands they do not use. And whether the mid term protection clause lets the buyer adjust if capacity drops, or only if it rises. The answer to the third question is currently asymmetric in the seller's favour on most renewals we see.

"We had been paying for vSAN allocation on hosts that had not run vSAN for two years. Nobody on either side had reconciled it."Director Infrastructure · Regional bank in EMEA

The work is a mix of deployment reconciliation, contract reading, and structure rewriting. Reconciliation usually pulls between eight and twenty two percent out of the opening quote. The contract reading finds the asymmetric clauses that protect the seller against consumption changes that go in only one direction. The rewrite makes the protection symmetric, or compensates with a price band that does the same job.

The case below shows what this looks like on a mid market renewal. The field notes describe the inclusion trap most VCF buyers do not see until the second year of the contract.

§ 02

Outcomes on vSAN reviews

Verified · Net of fees · Signed contract delta
Typical reduction
41%
Average across trailing vSAN allocation reviews.
▲ range 28 to 55%
Largest delta
$11M
Three year savings on a vSAN allocation embedded in a VCF renewal.
▲ Q4 2025 case
Bundle clauses rewritten
3
Inclusion, capacity band, mid term protection. All asymmetric by default.
▲ standard rewrites
Reviews delivered
16+
Standalone and VCF embedded vSAN reconciliations.
▲ Q2 cumulative
§ 04

What we negotiate

vSAN licensing · The clauses inside the VCF bundle
#Contract elementWhat we changeTypical liftDifficulty
01
Host allocation reconciliation
Hosts charged for vSAN versus hosts actually running vSAN in production.
The single largest reconciliation finding on most reviews.
−8 to −22%Low
02
Capacity band structure
Pricing bands by raw or usable capacity, including stretched cluster math.
Bands are renegotiated only when somebody asks. Most do not ask.
−6 to −18%Medium
03
Inclusion mechanics
What counts as included with VCF, what is metered separately, what the bundle covers.
Three rewrites since the acquisition. Most quotes use the old paper.
−10 to −20%Medium
04
Mid term symmetry
Protection if capacity falls, not only protection if capacity rises.
Currently asymmetric in the seller's favour by default.
Material posture shiftHigh
§ 05

Field notes · vSAN

Quarterly intelligence from live vSAN reviews
VMware · TrapQ2 · 8 min read

The vSAN inclusion trap most VCF buyers do not see

Bundling looks like a gift. The clause that defines what is included also defines what counts against the cap. Three rewrites in twenty four months have shifted who carries the variance when consumption moves.

Read essay →
VMware · TellQ2 · 8 min read

The three signs your VCF renewal quote is built on stale entitlements

Almost every renewal quote we see this quarter is anchored to a deployment snapshot that is twelve to eighteen months out of date. Three signs in the quote itself tell you when. Each is worth low double digit percent on the final number.

Read essay →
VMware · LeverQ2 · 7 min read

Why the VCF core minimum is the wrong fight to pick first

The core minimum gets all the attention because it is the headline number. It is rarely the term that decides the deal. The real lever sits two clauses deeper, in subscription conversion mechanics and ramp protection.

Read essay →
Adjacent product · VCF renewal desk →   Tanzu bundling desk →
Correspondence Invited

Write before the quote becomes a position.

Two analyst calls. No pitch. We tell you what we would do, what the leverage actually is, and whether we are the right firm. If we are not, we will say so.
Who we work for. Buyer side only. No reseller relationship with Broadcom. No partnership of any kind. We do not earn anything from products sold or renewed. Only from outcomes delivered against the contract.