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VMware ESXi 8.0 Update 3e Free Version Returns After Broadcom Backlash

Problem Description

After Broadcom’s acquisition of VMware in late 2023, the company abruptly discontinued all perpetual licenses and the popular free version of VMware ESXi, pushing users toward paid subscriptions and cloud contracts. This move caused widespread frustration and uncertainty, especially among small businesses, home lab enthusiasts, and IT professionals who relied on the free ESXi hypervisor for testing, education, and non-production environments.

However, in April 2025, Broadcom quietly reversed course. The release notes for VMware ESXi 8.0 Update 3e included a statement that the entry-level hypervisor is once again available for free download from the Broadcom Support portal. This unexpected development has left many wondering about the details, limitations, and future of the free ESXi offering.

Is VMware ESXi 8 Free Again?

Yes. As of ESXi 8.0 Update 3e (April 2025), Broadcom has reinstated a free version of VMware ESXi 8, available for download from the Broadcom Support portal. The free hypervisor is intended as an entry-level solution, primarily for home labs, training, and test environments.

How to Download the Free ESXi 8.0 Update 3e

  1. Create or log in to a free account on the Broadcom Support portal.
  2. Go to the VMware vSphere Hypervisor Download section.
  3. Choose the ESXi 8.0U3e release and accept the terms and conditions.
  4. Complete any required compliance information and download the ISO installer.

No separate license key registration is required; the free license is included with the installation.

Limitations of the Free ESXi Version

  • No vCenter Integration: Cannot be managed by vCenter, so features like clustering, high availability (HA), and vMotion are unavailable.
  • No API Access: Backup solutions (e.g., Veeam) and third-party integrations requiring API access will not work.
  • Standalone Use Only: Designed for single-host, standalone deployments—ideal for labs and testing, not for production clusters.
  • Feature Set: Only the core hypervisor functionality is included. Advanced features remain locked behind paid licenses.

Why Did Broadcom Reverse Its Decision?

  • Customer Backlash: The removal of the free version and aggressive licensing changes led to intense criticism from the community and customers.
  • Competitive Pressure: Rivals like Nutanix and Platform9 offer free community editions, and open-source alternatives (e.g., Proxmox) gained traction.
  • Strategic Repositioning: The free edition helps Broadcom maintain goodwill, attract new users, and build a future talent pool.

Should You Trust the Free ESXi Going Forward?

  • Caution Advised: While the free version is back, many in the community remain skeptical about Broadcom’s long-term intentions and the stability of its licensing policies.
  • Migration Considerations: If you require stability, advanced features, or production support, consider alternatives like Proxmox or other open-source hypervisors.

References

Official Release Notes: The release notes for ESXi 8.0 Update 3e explicitly state:

“Broadcom makes available the VMware vSphere Hypervisor version 8, an entry-level hypervisor. You can download it free of charge from the Broadcom Support portal.”

Community Confirmation: Multiple reputable sources and user reports confirm the free version is live and downloadable.

Broadcom’s decision to restore the free version of VMware ESXi 8 is a positive surprise for the virtualization community, but trust remains fragile. For now, home labbers and small businesses can once again access a free, entry-level hypervisor—just be mindful of its limitations and Broadcom’s unpredictable licensing history.