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“Extreme” Broadcom-proposed price hike would up VMware costs 1,050%, AT&T says

Arstechnica

Arstechnica · 1y ago

“Extreme” Broadcom-proposed price hike would up VMware costs 1,050%, AT&T says

- AT&T has accused Broadcom of quoting a 1,050 percent price hike for VMware offerings in legal documents related to a dispute over support services. - AT&T argues that it should have the right to renew support through September 2026 based on a previously signed five-year deal. - Many VMware customers have complained about Broadcom's changes, including increased prices and bundling products into fewer SKUs. - AT&T claims that migration costs to move away from VMware would range from $40 million to $50 million. - Broadcom has not publicly commented on the allegations and has requested that AT&T's request to block the discontinuation of VMware support be denied.

Related News

AT&T sues Broadcom for refusing to renew perpetual license support

Arstechnica

Arstechnica · 1y ago

AT&T sues Broadcom for refusing to renew perpetual license support

AT&T has filed a lawsuit against Broadcom, accusing the company of retroactively changing existing VMware contracts. The lawsuit alleges that Broadcom is preventing AT&T from renewing support services for previously purchased perpetual VMware software licenses unless certain conditions are met. AT&T claims that support services are critical for software errors, security patches, upgrades, and maintenance. The lawsuit seeks a one-year renewal for support services and aims to prevent Broadcom from cutting off support. Broadcom denies the allegations and argues that AT&T is not eligible for a renewal. The case could have implications for AT&T's provision of services to first responders and the Office of the President.

A long, costly road ahead for customers abandoning Broadcom’s VMware

Arstechnica

Arstechnica · 8m ago

A long, costly road ahead for customers abandoning Broadcom’s VMware

The acquisition of VMware by Broadcom has led to dissatisfaction among its clients due to rising costs and complex service changes. Many companies are contemplating reducing or ending their association with VMware. The price increases are attributed to Broadcom's bundling tactics, and technical support has become inadequate. Migrating from VMware is a challenging and costly process, causing hesitancy among users. Despite some potential pricing relief, the overall scenario presents a tough choice for VMware customers.

Broadcom responds to AT&T’s VMware support lawsuit: AT&T has “other options”

Arstechnica

Arstechnica · 1y ago

Broadcom responds to AT&T’s VMware support lawsuit: AT&T has “other options”

Broadcom has filed a legal response to AT&T's lawsuit, accusing the company of attempting to force it to sell support services for perpetual software licenses that VMware has discontinued. AT&T had filed a lawsuit against Broadcom, alleging that the latter had broken a contract by refusing to provide a one-year renewal for support for VMware software. Broadcom argues that AT&T should have prepared for the transition to a subscription model and has other options available. The two companies have agreed to continue support until October 9, with a hearing on a preliminary injunction scheduled for October 15.

A long, costly road ahead for customers abandoning Broadcom’s VMware

Arstechnica

Arstechnica · 8m ago

A long, costly road ahead for customers abandoning Broadcom’s VMware

After Broadcom acquired VMware in 2023, many customers grew dissatisfied and considered alternatives due to increased costs and restructuring. Organizations like a global food manufacturer faced fourfold cost rises and challenges in finding alternative virtualization platforms. With Broadcom pressuring customers into longer subscriptions and the loss of direct support, companies are concerned. Migration costs, technical challenges, and time requirements add to the complexity of leaving VMware, though some weigh these against staying under Broadcom's management.

Broadcom is selling even more VMware assets — end-compute unit set for billion-dollar deal

Techradar

Techradar · 1y ago

Broadcom is selling even more VMware assets — end-compute unit set for billion-dollar deal

Broadcom is reportedly selling off its End-User Compute (EUC) arm of VMware to private equity firm KKR for $3.8 billion. Since Broadcom acquired VMware in 2023, it has made controversial changes to the cloud computing service, including terminating perpetual licenses and axing the free ESXi Hypervisor. These changes have led to rising costs for customers, with some bills increasing by staggering amounts. The sale of the EUC sector follows Broadcom's announcement in December 2023 of its intentions to sell that part of the business. The move will likely impact VMware's government and regulated industry clientele.

Broadcom says “many” VMware perpetual licenses got support extensions

Arstechnica

Arstechnica · 1y ago

Broadcom says “many” VMware perpetual licenses got support extensions

Broadcom CEO Hock Tan has announced support extensions for some VMware perpetual license holders in an effort to address concerns over the company's recent business model changes. The extensions come after Broadcom's decision to end perpetual license sales for VMware and prioritize subscriptions. Tan also revealed plans to provide free access to zero-day security patches for supported versions of vSphere. These moves follow questioning by EU antitrust regulators over alleged changes to VMware's licensing and support conditions. Meanwhile, VMware channel partners and customers have voiced concerns over Broadcom's focus on larger businesses and increased pricing.

Broadcom ends business with VMware’s lowest-tier channel partners

Arstechnica

Arstechnica · 4m ago

Broadcom ends business with VMware’s lowest-tier channel partners

Broadcom is ending its business with VMware's lowest-tier partners, dismissing the Registered tier in its VMware partner program. This decision aims to focus on top-tier partners with stronger customer engagement and historical performance. This move has faced criticism for potentially increasing costs and reducing competition while forcing smaller partners, like Canadian MSP Members IT Group, to seek alternatives. Broadcom plans to enhance partner relationships through stringent standards, potentially alienating existing partners and driving them to competitors.

Beijing weighs delaying approval of $69 billion Broadcom-VMware deal: report

Economic Times

Economic Times · 1y ago

Beijing weighs delaying approval of $69 billion Broadcom-VMware deal: report

China's State Administration of Market Regulation is reportedly considering delaying the approval of Broadcom's $69 billion acquisition of VMware due to the US government's introduction of stricter chip controls. The deal, which would see Broadcom diversify into enterprise software, has already received clearance from several jurisdictions. However, China's merger and acquisition approvals for US companies now require additional consultations with the Ministry of Foreign Affairs and the State Council.

Tata Motors announces price hike, check stock reaction

Business Today

Business Today · 7m ago

Tata Motors announces price hike, check stock reaction

Tata Motors announced a price hike of up to 2%, effective April 1, 2025, to counter rising raw material and input costs. Over the past year, the company's stock has shown negative performance, dropping 32% in six months and 30% over 52 weeks.

Tata Motors to hike prices of commercial vehicles from next year

Livemint

Livemint · 1y ago

Tata Motors to hike prices of commercial vehicles from next year

Indian automotive manufacturer Tata Motors has announced a price hike of up to 3% on its commercial vehicles, effective January 1, 2024, to offset the impact of previous rises in input costs. The increase will apply to all commercial vehicle models, including Tata Ace, Tata Intra, and Tata Winger. This announcement comes after the company reported a marginal decrease in global sales for November 2023. Tata Motors is also considering a price hike for its passenger and electric vehicles in January. Other automakers in India, such as Mahindra & Mahindra and Honda Cars, are also planning price increases.

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