Subj : Broadcom backs down on VMware pricing rules as EU begins investig
To   : All
From : TechnologyDaily
Date : Tue Apr 16 2024 10:15:05

Broadcom backs down on VMware pricing rules as EU begins investigation 
following complaints

Date:
Tue, 16 Apr 2024 09:00:39 +0000

Description:
Existing VMware customers with perpetual licenses will get some support, but 
Broadcom remains committed to subscriptions.

FULL STORY
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In response to customer feedback and amidst mounting scrutiny from the 
industry and now regulators, Broadcom CEO Hock Tan has announced a 
significant backpedal on the companys pricing model. 

The move comes as the European Union has initiated an investigation into 
complaints about the companys pricing practices following its November 2023 
acquisition of VMware. 

Since then and under its new leadership, VMwares portfolio has seen 
significant changes, including the termination of perpetual licenses which 
left a bitter taste in the mouth of many long-standing customers. VMware by 
Broadcom is addressing some controversial changes 

In an announcement , Tan highlighted the companys intention to shift towards 
simplicity and cost-effectiveness, noting that VMware's and its customers' 
previous pricing structure was complex and costly. 

Tan also acknowledged that the companys move toward a subscription-based 
model had left perpetual license customers unsupported. However, in an effort 
to pacify disgruntled users, Broadcom has now confirmed that it will provide 
free access to zero-day security patches for supported versions of vSphere, 
with more products set to receive a similar treatment in time. 

The CEO said that this was to recognize that fast-moving change[s] may 
require more time, indicating that customers had expressed concerns about 
balancing expenditures between capital and operating spending. 

Still, Broadcom remains committed to transitioning VMware to a 
subscription-based company, claiming that work started in 2018, long after 
many rivals had already done so. 

Besides committing to backing VMware services with billions of dollars in new 
investment, Tan also announced that VMware Cloud Foundation (VCF) would see 
dramatic price reductions. 

A spokesperson for the European Union stated (via Reuters ): The Commission 
has received information suggesting that Broadcom is changing the conditions 
of VMware's software licensing and support. 

Now, according to the report, EU antitrust regulators are enquiring with 
Broadcom about changes to newly VMware's licensing conditions. More from 
TechRadar Pro Broadcom says complaints about VMware rising prices, 
subscriptions are unfair Weve rounded up a list of the best cloud hosting 
providers Check out the best small business servers



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Link to news story:
https://www.techradar.com/pro/broadcom-backs-down-on-vmware-pricing-rules-as-e
u-begins-investigation-following-complaints


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