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VMware perpetual license holders receive cease-and-desist letters from Broadcom

Arstechnica

Arstechnica · 56y ago

VMware perpetual license holders receive cease-and-desist letters from Broadcom

Broadcom has issued cease-and-desist letters to VMware perpetual license holders with expired support contracts, following its 2023 acquisition of VMware. The letters demand users stop utilizing updates beyond their contract expiration. These actions aim to drive users towards subscription-based models. Many affected users report confusion, legal concerns, and migration to alternatives. Broadcom warns of possible audits for non-compliance, prompting backlash and reputational challenges despite the company's financial success post-acquisition.

Related News

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.

Some VMware perpetual license owners are unable to download security patches

Arstechnica

Arstechnica · 6m ago

Some VMware perpetual license owners are unable to download security patches

Some VMware perpetual license owners currently face difficulties downloading essential security patches, with Broadcom indicating that access will be granted at an unspecified later date. This delay follows Broadcom's acquisition of VMware and the shift from perpetual licenses to subscriptions, causing some users without support contracts to miss timely patch updates. Additionally, the European General Court is reviewing an appeal against the European Commission’s approval of Broadcom's VMware acquisition, citing concerns over unfair licensing practices and potential market dominance.

VMware admits sweeping Broadcom changes are worrying customers

Arstechnica

Arstechnica · 1y ago

VMware admits sweeping Broadcom changes are worrying customers

Broadcom's changes to VMware since acquiring the company are causing concerns among customers and partners. VMware is facing challenges as customers evaluate how to maximize value from their products and deal with the shift from perpetual license sales to a subscription-based model. Broadcom's decision to discontinue certain VMware products and end the VMware partner program is also causing confusion and potential infrastructure changes for smaller businesses. While Broadcom defends the changes as necessary, the implications of these decisions remain to be seen.

Broadcom reverses controversial plan in effort to cull VMware migrations

Arstechnica

Arstechnica · 1y ago

Broadcom reverses controversial plan in effort to cull VMware migrations

Broadcom is changing its strategy with VMware, no longer dealing directly with the biggest 2,000 customers, but instead collaborating with VMware's top 500 customers. This shift is aimed at discouraging migrations from VMware. However, customers have voiced concerns over Broadcom's previous controversial changes, including ending perpetual license sales and VMware's channel partner program. Broadcom hopes to mitigate this by involving channel partners in deals and providing additional value for customers. The move is an attempt to retain business and promote the implementation of Broadcom's private cloud bundles.

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.

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.

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 killing VMware partner program could disrupt thousands of businesses

Arstechnica

Arstechnica · 2y ago

Broadcom killing VMware partner program could disrupt thousands of businesses

Broadcom, the new owner of VMware, is ending the partner programs of the virtualization and cloud computing company. From April 30, 2024, VMware's partnership with solution providers, resellers, and distributors will come to an end, potentially disrupting tens of thousands of businesses. The lack of clarity from Broadcom about who will be invited to its partner program has caused uncertainty among VMware partners and customers. There are concerns that only a small percentage of cloud service providers will be invited, leaving many without access to VMware.

“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.

VMware cloud partners demand “firm regulatory action” on Broadcom

Arstechnica

Arstechnica · 8m ago

VMware cloud partners demand “firm regulatory action” on Broadcom

A report by the European Cloud Competition Observatory criticizes Broadcom's business model for VMware, labeling it "legally and ethically flawed." The report accuses Broadcom of imposing burdensome financial obligations on VMware customers by transitioning licensing models and pushing for regulatory action. It claims that Broadcom places pressure on partners and customers while hindering competitors. As smaller cloud service providers struggle, many businesses are seeking alternatives to VMware, prompting calls for urgent regulatory intervention.

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