Oracle today announced updates to its partnership with Broadcom to support the Bring Your Own License (BYOL) model for Oracle Cloud VMware Solution (OCVS). This evolution enables customers to continue running VMware workloads on Oracle Cloud Infrastructure (OCI) while aligning with Broadcom’s updated licensing framework. 

This blog provides clear guidance on how OCVS transitions to the BYOL model beginning in March 2026. It outlines the phased retirement of license-included offerings, how customers can operate and scale during each stage of the transition, and when BYOL becomes available for new and existing environments. The goal is to provide a clear, practical view of what to expect and how to plan ahead. 

A Structured Transition for Customers 

Today, OCVS offers a license-included model in which VMware licenses are bundled with OCI infrastructure. As Broadcom moves to a BYOL-only licensing approach, Oracle plans to phase out the license-included OCVS offerings through a defined, multi-stage transition. 

Throughout this transition, Oracle’s focus is to provide customers with a predictable operating model and clear timelines. Oracle’s plan is that existing SDDCs continue operating as-is; customers retain defined options for scaling during each phase, and host-level commitment behavior is clearly defined to support licensing and capacity planning. 

During the transition:

  • Existing SDDCs continue operating without disruption through their current host commitments. 
  • Existing SDDCs may scale using hourly license-included hosts during the transition period. 
  • New SDDCs require BYOL beginning March 22, 2026, once BYOL is generally available. 
  • Existing SDDCs may transition to BYOL once it becomes publicly available, subject to host commitment terms. 
  • Any changes to the dates below will be communicated in advance.

Key Dates and Milestones

January 21 – March 21, 2026: Announcement Period

  • No immediate changes to customer operations
  • Existing license-included SDDCs continue to operate as-is
  • Customers may: 
    • Deploy new license-included SDDCs 
    • Scale existing license-included SDDCs 
    • Use on-demand (Hourly/Monthly), 1-year, or 3-year license-included commitments 
  • Hosts with expiring commitments renew based on their configured next pricing interval 
  • Customers are encouraged to begin planning for BYOL adoption and engage with Broadcom or authorized partners regarding VMware licensing.

March 22 – May 20, 2026: Transition Period

  • License-included monthly, 1-year, and 3-year SKUs are no longer available
  • New SDDCs:
    • May only be deployed using BYOL once it is generally available
    • License-included SKUs are not available for new SDDCs
  • Existing SDDCs:
    • Continue operating normally
    • May scale only using hourly license-included hosts
    • Hosts with expiring commitments must transition to hourly license-included pricing
    • Customers should plan for a host-by-host transition to BYOL once it becomes available

Starting May 21, 2026: BYOL-Only Offering

BYOL becomes the standard operating model for OCVS.

  • BYOL is mandatory for:
    • All new SDDCs
    • All new host additions
  • For existing hosts:
    • Hosts under active license-included commitments may:
    • Continue operating until the commitment expires, or
    • Transition to BYOL earlier
    • Hosts operating on hourly or monthly license-included pricing must transition to BYOL
  • Customers planning upgrades to newer VMware Cloud Foundation releases (including VCF 9) must transition remaining license-included capacity to BYOL as part of that upgrade.

BYOL Availability for Oracle Cloud VMware Solution

BYOL for OCVS is planned to become generally available in March 2026. Availability confirmation and supporting documentation will be published as part of the GA release.

At general availability: 

  • BYOL-enabled OCVS deployments will support the latest generally available VMware Cloud Foundation (VCF) 5.2.x release
  • BYOL workflows will be fully integrated into the OCVS console and APIs
  • Existing SDDCs may begin transitioning hosts to BYOL, subject to commitment terms
  • New and existing SDDCs operate under a consistent BYOL-based model

What Customers Should Do Now 

Oracle recommends that customers: 

  • Review current SDDC capacity, growth plans, and host commitment timelines
  • Engage Broadcom or authorized partners regarding VMware licensing requirements
  • Align BYOL adoption plans with commitment expirations and VMware lifecycle milestones
  • Work with Oracle account teams to plan deployment and transition strategies

Oracle teams are actively supporting customers through this transition to help determine the best approach for each environment. 

Continuity, Clarity, and Confidence 

Oracle has designed this transition to enable uninterrupted operations, predictable scaling behavior, and transparent host-level lifecycle management. 

Key principles include: 

  • Uninterrupted operations: Existing workloads continue operating normally under active commitments
  • Predictable scaling: Clear rules for when hourly license-included scaling is allowed and when BYOL is required
  • Transparent host lifecycles: Host-level commitment behavior remains explicit and predictable
  • Consistent BYOL adoption: Once available, BYOL becomes the standard model for both new and existing environments
  • Future-ready platform support: BYOL enables access to newer VMware Cloud Foundation releases, including future support for VCF 9

Customers should also consider VMware product lifecycle timelines when planning long-term commitments and BYOL adoption. Detailed lifecycle guidance, operational examples, and OCVS BYOL FAQs are available on the OCVS Product page.

Questions or Assistance 

For deployment planning or questions not covered in the FAQ, customers should work with their Oracle representative or contact the OCVS Product team at: oci_ocvs_product_ww_grp@oracle.com 

Looking Ahead 

Broadcom’s licensing changes require adjustments across the cloud ecosystem, and Oracle Cloud VMware Solution remains committed to delivering consistent VMware operations, full administrative control and deep integration with Oracle Cloud Infrastructure globally. 

Oracle’s priority is to provide customers with a clear and predictable path forward—supporting existing SDDCs under current agreements while enabling new deployments through the BYOL model as it becomes generally available. This approach allows customers to plan transitions in alignment with host commitments without disrupting ongoing operations. 

Customers are encouraged to engage their Oracle account team for planning, licensing, and deployment guidance. Oracle remains dedicated to ensuring a smooth, transparent, and well-defined transition for VMware workloads on OCI.