Broadcom says complaints about VMware rising prices, subscriptions are unfair

Broadcom says complaints about VMware rising prices, subscriptions are unfair

Ever since Broadcom finalized its acquisition of VMware late in 2023, the virtualization company has undergone some pretty seismic shifts and controversial changes, including the termination of perpetual licenses.

Complaints about the rising costs associated with being a VMware customer or partner under Broadcom’s leadership have been widespread, even prompting calls for regulatory intervention regarding the company’s decision to move to a subscription-only model.

Previously acknowledging customer concerns, Broadcom is now asserting that complaints about its changes have been unfair.

In an interview with The Register, Sylvain Cazard, president of Broadcom Software for Asia-Pacific, said that the complaints had been unwarranted because customers using two or more components of VMware’s flagship Cloud Foundation will end up paying less. Cazard also noted that the new pricing includes support.

Despite Broadcom’s efforts to address widespread concerns, industry groups representing European companies have urged regulatory action against Broadcom’s alleged unfair practices and changes.

In a joint letter to European Commission President Ursula von der Leyen, Vice President Margrethe Vestager, and European Commissioner Thierry Breton, Beltug, Le Cigref, CIO Platform Nederland, and VOICE e.V. expressed several concerns. 

The organizations opposed “steeply increased prices, non-fulfilment of previous contractual agreements, disallowing reselling of licenses, refusing to maintain security conditions for perpetual licenses, (re)bundling of licenses, leading to higher costs, a shakeup of the ecosystem of VMware resellers and partners, and a loss of knowledge.”

The letter asks for the Commission’s perspective and guidance on “what courses of action are open.”

Regardless of efforts by Cazard, Prashanth Shenoy, or CEO Hock Tan to tame customer dissatisfaction, many have already been left to reassess their place as a VMware customer or partner.

TechRadar Pro invited Broadcom to share further comments about the widespread disgruntlement and the latest letter addressed to the European Commission, but the company did not immediately respond.

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Craig Hale

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