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Google Cloud Cuts VMware Cloud Prices: 5 Azure, AWS and Broadcom Facts Buyers Need in 2026

Google’s VMware Cloud price cuts and incentives were announced in 2024. Here is what remains relevant in 2026, how Broadcom’s portable-license model changes the math, and how to compare GCVE with Azure VMware Solution and AWS.
From TheFinanceBase Team8 min to read
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Google did cut the advertised cost of VMware Cloud on Google Cloud in July 2024, but that announcement is not a 2026 price list. The offer combined lower VMware Cloud Foundation (VCF) commitment rates, cheaper node commitments, migration and consumption incentives, and support for eligible portable VMware licenses. Since then, Broadcom has moved new hyperscaler deployments to a bring-your-own VCF subscription model. A current business case must therefore price Google infrastructure and Broadcom software separately.

The five-minute answer

Question Answer
Did Google reduce GCVE pricing? Yes. Google announced lower VCF commitment pricing and node discounts on July 18, 2024.
Was every bill reduced by 20%? No. The approximately 20% figure referred to VCF commitment pricing in the announced offering. Region, node type, term, payment method, licensing and ancillary services determine the actual bill.
Is the old $3.60-per-hour example current? No. It was a dated comparison for a specific node, region and commitment.
Can customers bring VMware licenses? Yes, if they have an eligible portable VCF subscription. The Broadcom subscription remains a separate cost.
Who supplies VCF licenses for new 2026 deployments? Broadcom, under the current bring-your-own-subscription model described by Google.
Is Google always cheaper than Azure or AWS? There is no current universal proof. Compare matched, fully loaded quotes.

1. What Google actually announced in July 2024

Google’s announcement made five commercial points:

  1. Lower VCF commitment pricing: approximately 20% lower pricing for VCF support in the new Google Cloud VMware Engine (GCVE) offering.
  2. Lower node rates: Google reported VE1 rates 22% below previous pricing, up to 35% lower for an eligible VE1 node on a three-year prepaid commitment with portable licensing, and VE2 discounts of 37% for one-year prepaid and 55% for three-year prepaid commitments.
  3. Migration and consumption incentives: up to 25% of incremental first-year net spend for qualifying migration services plus up to 15% in additional first-year consumption credits, or a maximum combined opportunity of 40% of first-year GCVE spend.
  4. Assessments and proofs of concept: no-fee assessments, trials and POCs were offered through Google and partners.
  5. Portability and conversion: eligible VCF subscriptions could be brought to GCVE, and a three-year convertible commitment could move some usage among qualifying GCVE node types or Google services such as Compute Engine and GKE, subject to additional cost and contract terms.

These were announcement-era claims, not automatic discounts for every customer. “Up to” percentages depended on node family, region, commitment term, licensing model, agreement eligibility and approval.

Google’s original announcement is at Google Cloud’s July 2024 announcement; the contemporary account is covered by CRN.

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2. What “20% lower” did—and did not—mean

The headline did not mean that every GCVE invoice fell by one-fifth. It described lower commitment pricing for VCF support. A customer’s total cost also includes the node family and shape, region, on-demand or committed-use choice, monthly or upfront payment, storage-only capacity, backup, networking, support and any enterprise-agreement credits.

Google’s current committed-use documentation says VMware Engine commitments apply to eligible node usage. They do not cover storage, backups, IP addresses, outbound network transfer or VMware licensing.

The 2024 Google–Azure example

Google compared a ve1-standard-72 node in Iowa (us-central1) on a three-year prepaid commitment at $3.60 per hour with Azure VMware Solution’s AV36P in Central US at $5.17 per hour. Google characterized that as approximately 30% lower pricing.

That is a dated, like-for-like vendor comparison—not a timeless market ranking. The live GCVE pricing page now shows different figures, and Azure pricing and discounts can also change. A fair quote must normalize compute, memory, usable and raw storage, license treatment, region, currency, commitment term, support, disaster recovery and data transfer.

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3. The Broadcom change that controls 2026 economics

Broadcom acquired VMware in 2023 and subsequently consolidated products and changed licensing and channel arrangements. In 2024, Broadcom’s changes to VMware Cloud on AWS sales created an opening for competing providers; customers were directed toward Broadcom or authorized resellers for renewals and expansion. A CRN-quoted partner predicted that some customers could lose support or move to another provider, but that prediction should not be treated as an independently verified outcome.

The more important current change is licensing. Google says Broadcom moved hyperscaler VCF licensing to an exclusive bring-your-own-subscription model beginning November 1, 2025. New VMware Engine commitments purchased after the relevant October 2025 cutoff require a portable VCF subscription obtained directly from Broadcom. Fully licensed and fully licensed convertible commitments are no longer sold. Commitments purchased before July 25, 2024 are classified as legacy and remain valid until their expiry dates under their terms.

Read Google’s licensing update alongside the current CUD documentation before comparing a renewal with a new deployment.

4. License portability, in plain English

License portability does not make VMware free. It changes who charges for the software component.

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On-premises or separately purchased VCF subscription
                    |
          eligible portability entitlement
                    v
          Google VMware Engine infrastructure
          ├─ Google: GCVE node and service charges
          └─ Broadcom: portable VCF subscription

With license-included pricing, the VMware software component is bundled into the service price. With portable licensing, the customer buys an eligible VCF subscription from Broadcom and pays Google for the infrastructure and service component. The apparent saving comes from avoiding a second bundled VMware charge—not from eliminating the Broadcom subscription.

Verify these points before relying on portability

  • Does the VCF agreement expressly include the required portability entitlement?
  • Do the licensed cores and metric match the GCVE deployment, including burst and disaster-recovery capacity?
  • Do Broadcom and Google commitment terms align?
  • Are the geography and service configuration permitted?
  • Which organization supports VMware software, and which supports the cloud infrastructure?
  • What audit, renewal and compliance obligations apply?

5. What current GCVE pricing looks like

Public pricing viewed on August 18, 2026 showed Iowa VE1 ve1-standard-72 portable-license pricing of $4.530733 per hour for a one-year commitment with monthly payments and $3.46517 per hour for a three-year commitment with monthly payments. Upfront-payment variants were also displayed.

Those are region-, node-, term- and payment-specific figures, not a guaranteed quote. Google states that a normal private cloud requires three nodes; single-node private clouds are available for pilot testing. A pilot does not demonstrate production resilience or production economics. On-demand pricing remains available, while one- and three-year commitments cannot be canceled.

Commitment risk

Google says CUDs are applied at the Cloud Billing account level, cannot be moved to another billing account and continue charging for the term even if applicable usage prices change. Commit only the stable baseline; keep uncertain growth, migration overlap and possible VMware-exit capacity on on-demand pricing where practical.

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6. Azure VMware Solution: when the broader platform matters

Microsoft positions Azure VMware Solution as a managed VMware environment using vSphere, HCX, NSX and vSAN on Azure. It also highlights reservations, Azure Hybrid Benefit for eligible Windows Server and SQL Server licenses, and integration with more than 200 Azure services.

Azure may be the better economic choice when an organization already has a large Azure commitment, can use Hybrid Benefit, depends heavily on Microsoft identity and security services, or has Azure operations and support in place. A higher standalone VMware node rate can be offset by those commercial and operational advantages.

7. AWS and the Broadcom relationship

AWS remains a relevant VMware destination, but distinguish VMware Cloud on AWS from AWS-native modernization and third-party VMware-compatible offerings hosted on AWS. The current AWS VMware page presents migration pathways and options rather than one universal public price.

Do not conclude that GCVE is cheaper than AWS without current matched quotes. Existing AWS enterprise discounts, storage and transfer patterns, availability-zone design, native-service dependencies and reseller terms can outweigh a node-rate difference. The 2024 claim that VMware Cloud on AWS customers would move to Google was a channel-partner opinion, not proof of technical or financial superiority for every AWS customer.

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8. A fully loaded VMware-cloud cost model

Use this structure for every provider:

Total cost = cloud infrastructure + Broadcom VCF subscription + storage + backup and disaster recovery + network transfer + support + migration + management.

  • Infrastructure: nodes, minimum cluster size, memory, storage-only nodes and growth headroom.
  • Licensing: VCF entitlement, core calculations, term, renewal and DR or burst rights.
  • Resilience: secondary region, replication traffic, backup storage and failover testing.
  • Network: outbound transfer, internet access, inter-region traffic, IP addresses and connectivity.
  • Migration: assessment, HCX or equivalent tooling, application remediation, parallel-run capacity and partner labor.
  • Operations: identity, security, monitoring, patching, capacity governance and incident support.
  • Exit: data movement, contract termination exposure and replacement-platform work.

Storage, backup, IP, outbound transfer and licensing are specifically excluded from Google’s CUD discount, so a node-only model can materially understate cost.

9. Who is a good GCVE candidate?

Potentially strong fit

  • An organization with eligible portable VCF subscriptions or a clear Broadcom procurement path.
  • A predictable VMware baseline that can support a three-node production private cloud and a CUD.
  • Workloads that benefit from adjacency to Google services.
  • A low-change migration strategy with enough time to use approved incentives.
  • A modernization roadmap that may shift selected workloads to Compute Engine or GKE.

Potentially weak fit

  • A small estate that cannot use three production nodes efficiently.
  • A company planning to exit VMware soon or reduce capacity sharply.
  • An environment with substantial DR, backup or egress requirements omitted from the quote.
  • A buyer assuming “up to 40%” incentives are guaranteed or cash reimbursement.
  • A customer comparing Google’s portable-license quote with a license-included Azure or AWS quote.

10. GCVE, Azure and AWS: a practical decision matrix

Priority GCVE Azure VMware Solution AWS route
Existing cloud commitment Strongest where Google spend and services already matter Strongest for Azure-heavy enterprises and Hybrid Benefit users Strongest for AWS-standardized organizations and AWS discount holders
VMware licensing New commitments use portable VCF subscriptions under the current model Confirm current VCF portability and quote treatment Confirm Broadcom/reseller arrangement and current quote
Migration posture Low-change VMware move with Google adjacency Low-change move with Microsoft ecosystem integration Low-change move where AWS dependencies dominate
Public price conclusion Region- and term-specific; no universal winner Do not infer total cost from node rate alone No single public price establishes a ranking

11. Questions to ask before signing

  1. Is the proposal license-included or portable-license?
  2. Which Broadcom VCF entitlement and core calculation are required?
  3. How are production, DR, burst and idle capacity licensed?
  4. Which costs are outside the CUD?
  5. What happens if capacity falls below the commitment?
  6. Can the commitment be converted, to which services, at what fee and with what minimums?
  7. How are migration and consumption incentives approved, paid and clawed back?
  8. Which incentives expire, and when?
  9. Who supports VMware software, networking and the cloud infrastructure?
  10. What are the data-egress, termination and exit costs?

Bottom line for a 2026 buyer

Google’s 2024 package made GCVE more commercially aggressive, but the defensible current conclusion is not “Google cut VMware prices by 20%.” It is that Google may offer competitive VMware infrastructure while Broadcom’s portable-license requirement makes the combined Google-plus-Broadcom bill the number that matters. Require a current regional quote, a written VCF entitlement analysis, and matched GCVE, Azure and AWS total-cost models before committing.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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