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rewrote the stub into a full company page. added company history, the perpetual-license to subscription changes, the at&t/tesco/dutch lawsuits, and what happened to free esxi and workstation/fusion. dropped the reddit cite and the incorrect "esxi is based on red hat" line, added a couple primary-source screenshots
 
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{{Stub}}
{{CompanyCargo
{{CompanyCargo
|Description=American tech company developing virtualization software.
|Description=Broadcom ended VMware perpetual licenses and forced subscriptions; price hikes of 800% to 1,500% and cease-and-desist letters followed
|Founded=1998
|Founded=1998
|Industry=Cloud, Information Technology, Virtualization
|Industry=Cloud, Information Technology, Virtualization
|Logo=Vmware.svg
|Logo=Vmware.svg
|ParentCompany=Broadcom
|ParentCompany=Broadcom Inc.
|Type=Subsidiary
|Type=Subsidiary
|Website=https://www.vmware.com
|Website=https://www.vmware.com
}}
}}
'''[[wikipedia:VMWare|VMware]]''' is a major player in the enterprise virtualization software market. The brand has been a subsidiary of [[Broadcom Inc.|Broadcom]] since November 2023.
'''VMware''' is an enterprise virtualization software company that has been a subsidiary of [[Broadcom Inc.|Broadcom]] since November 2023.<ref name="broadcom-complete">{{Cite web |title=Broadcom Completes Acquisition of VMware |url=https://investors.broadcom.com/news-releases/news-release-details/broadcom-completes-acquisition-vmware |website=Broadcom Inc. |date=2023-11-22 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20251217124315/https://investors.broadcom.com/news-releases/news-release-details/broadcom-completes-acquisition-vmware |archive-date=2025-12-17}}</ref> After the takeover, Broadcom stopped selling perpetual licenses, moved existing customers onto subscriptions, & began sending cease-and-desist letters demanding that perpetual-license holders without active support contracts stop installing patches & updates.<ref name="business-transformation">{{Cite web |title=VMware by Broadcom Dramatically Simplifies Offer Lineup and Licensing Model |url=https://news.vmware.com/company/vmware-by-broadcom-business-transformation |website=VMware News |date=2023-12-11 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20240514220844/https://news.vmware.com/company/vmware-by-broadcom-business-transformation |archive-date=2024-05-14}}</ref><ref name="ars-cease">{{Cite news |last=Harding |first=Scharon |title=VMware perpetual license holders receive cease-and-desist letters from Broadcom |url=https://arstechnica.com/gadgets/2025/05/broadcom-sends-cease-and-desist-letters-to-subscription-less-vmware-users/ |work=Ars Technica |date=2025-05-07 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20251013130617/https://arstechnica.com/gadgets/2025/05/broadcom-sends-cease-and-desist-letters-to-subscription-less-vmware-users/ |archive-date=2025-10-13}}</ref> Customers reported annual cost increases of 800% to 1,500%, with AT&T alleging a 1,050% rise, & the changes drew lawsuits in the United States, the United Kingdom, & the Netherlands.<ref name="prices-techradar">{{Cite web |title=Broadcom has allegedly hiked VMware costs between 800 and 1,500% |url=https://www.techradar.com/pro/broadcom-has-allegedly-hiked-vmware-costs-between-800-and-1-500-percent |website=TechRadar |date=2025-05-23 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20250915160445/https://www.techradar.com/pro/broadcom-has-allegedly-hiked-vmware-costs-between-800-and-1-500-percent |archive-date=2025-09-15}}</ref><ref name="att-register">{{Cite web |last=Sharwood |first=Simon |title=AT&T claims VMware offered it a 1,050 percent price rise |url=https://www.theregister.com/2024/10/01/att_broadcom_filings_update/ |website=The Register |date=2024-10-01 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20251128045252/https://www.theregister.com/2024/10/01/att_broadcom_filings_update/ |archive-date=2025-11-28}}</ref><ref name="att-settle" /><ref name="tesco" /><ref name="dutch" />


Since the Broadcom takeover, licensing and business model changes bordering on extortion, price increases, litigations against corporate users such as Siemens, deliberately ending support for [https://arstechnica.com/gadgets/2025/05/broadcom-sends-cease-and-desist-letters-to-subscription-less-vmware-users/ perpetual license] products, have left many customers facing skyrocketing virtualization costs.
==Consumer-impact summary==
* '''End of perpetual licenses.''' On December 11, 2023, Broadcom stopped selling perpetual VMware licenses & discontinued support renewals for existing ones, collapsing the lineup into a few subscription bundles.<ref name="business-transformation" /> Software bought outright can't be updated unless the owner discards the perpetual license they paid for & buys a subscription.
* '''Price increases.''' AT&T alleged Broadcom offered it a 1,050% price rise.<ref name="att-register" /> For many customers, reported cost increases ranged from 800% to 1,500%.<ref name="prices-techradar" />
* '''Cease-and-desist letters and audits.''' Beginning in 2025, Broadcom sent legal notices ordering perpetual-license holders without active support to remove any patches, bug fixes, or upgrades installed after their support expired, then followed with software audits.<ref name="ars-cease" />
* '''Litigation.''' AT&T sued in August 2024 & settled in November 2024;<ref name="att-settle">{{Cite web |title=Broadcom, AT&T reach settlement in VMware legal dispute |url=https://www.ciodive.com/news/broadcom-att-vmware-settlement-licensing-support-lawsuit/733763/ |website=CIO Dive |date=2024-11-22 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20250814074513/https://www.ciodive.com/news/broadcom-att-vmware-settlement-licensing-support-lawsuit/733763/ |archive-date=2025-08-14}}</ref> Tesco sued for £100 million in September 2025;<ref name="tesco">{{Cite web |title=Supermarket giant Tesco sues VMware for breach of contract |url=https://www.theregister.com/2025/09/03/tesco_sues_vmware_broadcom_computacenter/ |website=The Register |date=2025-09-03 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20251223102412/https://www.theregister.com/2025/09/03/tesco_sues_vmware_broadcom_computacenter/ |archive-date=2025-12-23}}</ref> a Dutch court ordered Broadcom to keep supporting the national infrastructure agency Rijkswaterstaat after an 85% price hike;<ref name="dutch">{{Cite web |title=Dutch court forces Broadcom to support VMware migration after 85% price hike backlash |url=https://www.networkworld.com/article/4015489/dutch-court-forces-broadcom-to-support-vmware-migration-after-85-price-hike-backlash.html |website=Network World |date=2025-06-30 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20250911222039/https://www.networkworld.com/article/4015489/dutch-court-forces-broadcom-to-support-vmware-migration-after-85-price-hike-backlash.html |archive-date=2025-09-11}}</ref> and VMware sued Siemens in March 2025 for using unlicensed copies.<ref name="siemens">{{Cite web |title=VMware sues Siemens for using unlicensed software |url=https://www.theregister.com/2025/03/26/vmware_sues_siemens_for_using/ |website=The Register |date=2025-03-26 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20251128045252/https://www.theregister.com/2025/03/26/vmware_sues_siemens_for_using/ |archive-date=2025-11-28}}</ref>


==Consumer-impact summary==
==Background==
In 2024, Broadcom removed the ability to extend support for perpetual licensing, and required that customers switch to subscription licensing. The product you bought can no longer be updated, to receive updates you must throw away your perpetual licensing and buy new subscription licenses. AT&T claimed an annual cost increase of 1050%.<ref>{{cite web |last=Sharwood |first=Simon |date=2024-10-01 |title=AT&T claims VMware offered it a 1,050 percent price rise |url=https://www.theregister.com/2024/10/01/att_broadcom_filings_update/ |archive-url=https://web.archive.org/web/20251128045252/https://www.theregister.com/2024/10/01/att_broadcom_filings_update/ |archive-date=2025-11-28 |access-date=2025-09-08 |website=The Register}}</ref>
VMware was founded in 1998 in Palo Alto, California, and shipped its first product, VMware Workstation, in 1999, bringing x86 virtualization to the desktop.<ref name="itpro">{{Cite web |title=Everything you need to know about VMware |url=https://www.itpro.com/virtualisation/29279/everything-you-need-to-know-about-vmware |website=IT Pro |access-date=2026-06-15 |archive-url=http://web.archive.org/web/20260215200548/https://www.itpro.com/virtualisation/29279/everything-you-need-to-know-about-vmware |archive-date=2026-02-15}}</ref> EMC Corporation announced its acquisition of VMware, a cash deal valued at about $635 million, in December 2003.<ref name="emc-sec">{{Cite web |title=EMC to Acquire VMware, Inc. (Form 425) |url=https://www.sec.gov/Archives/edgar/data/930885/000095013503006035/b48830eve425.htm |website=U.S. Securities and Exchange Commission |date=2003-12-15 |access-date=2026-06-15}}</ref> Dell Technologies later gained control of VMware & spun it back out as an independent company on November 1, 2021, divesting its 81% equity stake.<ref name="dell-spinoff">{{Cite web |title=Dell Technologies Announces Completion of VMware Spin-off |url=https://www.prnewswire.com/news-releases/dell-technologies-announces-completion-of-vmware-spin-off-301413240.html |website=PR Newswire |date=2021-11-01 |access-date=2026-06-15 |archive-url=http://web.archive.org/web/20260507201839/https://www.prnewswire.com/news-releases/dell-technologies-announces-completion-of-vmware-spin-off-301413240.html |archive-date=2026-05-07}}</ref> Broadcom announced its acquisition of VMware in May 2022 in a deal valued at about $61 billion & completed the purchase on November 22, 2023.<ref name="cnet-61b">{{Cite web |title=Broadcom to Acquire VMware for $61 Billion |url=https://www.cnet.com/tech/computing/broadcom-to-acquire-vmware-for-61-billion/ |website=CNET |date=2022-05-26 |access-date=2026-06-15}}</ref><ref name="broadcom-complete" />


==Incidents==
==Incidents==
This is a list of all consumer-protection incidents this company is involved in. Any incidents not mentioned here can be found in the [[:Category:{{FULLPAGENAME}}|{{PAGENAME}} category]].
This is a list of consumer-protection incidents this company is involved in. Any not listed here can be found in the [[:Category:{{FULLPAGENAME}}|{{PAGENAME}} category]].
===Cease and Desist Letters/Notifications===
 
{{Main|VMware extraordinary price increase for licenses since acquisition by Broadcom}}
===Licensing change since the Broadcom acquisition===
{{Main|VMware licensing change since acquisition by Broadcom}}
Broadcom ended perpetual VMware licensing, required customers to move to subscriptions, & enforced the change through the software's [[End-user license agreement|license terms]], sending cease-and-desist letters to perpetual-license holders who kept patching unsupported software.<ref name="ars-cease" /> The licensing changes also drew antitrust scrutiny, including a monopoly investigation by Japan's Fair Trade Commission.<ref name="japan-ftc">{{Cite web |title=VMware investigated by Japanese antimonopoly agency: reports |url=https://www.theregister.com/2024/09/25/japan_vmware_broadcom_monopoly_investigation/ |website=The Register |date=2024-09-25 |access-date=2026-06-15 |archive-url=https://web.archive.org/web/20251125091553/https://www.theregister.com/2024/09/25/japan_vmware_broadcom_monopoly_investigation/ |archive-date=2025-11-25}}</ref>


An incident of a customer receiving a cease and desist letter from Broadcom, regarding perpetual licensing and other services offered.
[[File:Broadcom VMWare cease and desist notice.png|thumb|center|upright=2.4|alt=Scan of a Broadcom Notice of Expiration of Support letter sent to a VMware perpetual-license customer.|A Broadcom notice of expiration of support sent to a VMware perpetual-license customer demands that the customer stop using updates and patches issued after its support contract expired.<ref name="ars-cease" /><ref name="imgur-cease">{{Cite web |date=2025-04-16 |title=Notice of Expiration of Support by Broadcom |url=https://imgur.com/FbrdQya |url-status=live |archive-url=http://web.archive.org/web/20250513083638/https://imgur.com/FbrdQya |archive-date=2025-05-13 |access-date=2026-06-15}}</ref>]]
[[File:Broadcom VMWare cease and desist notice.png|thumb|alt=Re: Notice of Expiration of Support. Dear <Customer>, The above referenced Order(s) between ("Customer") and VMware LLC (as successor in interest to VMware, Inc. and hereinafter referred to as "VMware") expired on or before February 15, 2025 ("Expiration Date"). Accordingly, Customer's right to receive Support Services for the perpetual Software listed in the Order(s) expired on or before such date. As no new order(s) for subscription licenses and support services has been executed between the parties, Support Services are no longer available for the perpetual Software listed in the Order(s) and such Software licenses deployed in your environment are running unsupported. VMware, therefore, immediately demands that all use of Support Services associated with VMware Software, including Maintenance Releases/Updates, Minor Releases, Major Releases/Upgrades extensions, enhancements, patches, bug fixes or security patches (with the exception of zero-day security patches for vSphere 7.x and 8.x, CVSS score greater than or equal to 9.0, so long as those are generally provided by VMware at no cost) be ceased. The implementation of any of the aforementioned (excluding select zero-day patches as defined above) past the Expiration Date must be immediately removed/deinstalled. Any such use of Support past the Expiration Date constitutes a material breach of the Agreement with VMware and an infringement of VMware's intellectual property rights, potentially resulting in claims for enhanced damages and attorneys' fees. Additionally, Customer must comply with any post-expiration reporting requirements related to the Order(s) and governing license agreement. Failure to comply with such requirements may result in a breach of the Agreement by Customer and VMware may exercise its right to audit Customer as well as any other available contractual or legal remedy. If you have questions, please contact your Broadcom/VMware Account Director or authorized reseller. This communication shall not prejudice or waive any rights or remedies that Broadcom or VMware may have as respects the subject matter set forth herein, all of which are hereby expressly reserved. Sincerely, <Representative>|Notice of Expiration of Support by Broadcom<ref>{{Cite web |date=2025-04-16 |title=Notice of Expiration of Support by Broadcom |url=https://imgur.com/FbrdQya |url-status=live |archive-url=http://web.archive.org/web/20250513083638/https://imgur.com/FbrdQya |archive-date=13 May 2025|access-date=2025-09-11}}</ref>]]


==Products==
==Products==
* '''VMware vSphere''' and its '''ESXi''' hypervisor are the core server-virtualization platform. Broadcom discontinued the free edition of ESXi in February 2024, then restored it in April 2025.<ref name="esxi-killed">{{Cite web |last=Sharwood |first=Simon |title=Broadcom terminates VMware's free ESXi hypervisor |url=https://www.theregister.com/2024/02/13/broadcom_ends_free_esxi_vsphere/ |website=The Register |date=2024-02-13 |access-date=2026-06-15 |archive-url=http://web.archive.org/web/20260313150146/https://www.theregister.com/2024/02/13/broadcom_ends_free_esxi_vsphere/ |archive-date=2026-03-13}}</ref><ref name="esxi-revived">{{Cite web |last=Sharwood |first=Simon |title=VMware revives its free ESXi hypervisor in an utterly obscure way |url=https://www.theregister.com/2025/04/14/vmware_free_esxi_returns/ |website=The Register |date=2025-04-14 |access-date=2026-06-15 |archive-url=http://web.archive.org/web/20260426202914/https://www.theregister.com/2025/04/14/vmware_free_esxi_returns/ |archive-date=2026-04-26}}</ref>
* '''VMware Cloud Foundation''' (VCF) is the bundled subscription stack Broadcom steers customers toward after collapsing the former product lineup into a handful of bundles in December 2023.<ref name="business-transformation" />
* '''VMware Workstation Pro''' and '''VMware Fusion''' are desktop hypervisors for Windows, Linux, and macOS. Broadcom made both free for personal, educational, & commercial use on November 11, 2024.<ref name="ws-fusion-free">{{Cite web |title=VMware Fusion and Workstation are Now Free for All Users |url=https://blogs.vmware.com/cloud-foundation/2024/11/11/vmware-fusion-and-workstation-are-now-free-for-all-users/ |website=VMware Cloud Foundation Blog |date=2024-11-11 |access-date=2026-06-15 |archive-url=http://web.archive.org/web/20260502173103/https://blogs.vmware.com/cloud-foundation/2024/11/11/vmware-fusion-and-workstation-are-now-free-for-all-users/ |archive-date=2026-05-02}}</ref>
* '''VMware Horizon''' & the rest of the End-User Computing line are no longer VMware products. Broadcom sold the division to the investment firm KKR, and it now operates as a standalone company, Omnissa.<ref name="omnissa">{{Cite web |title=Introducing Omnissa, the former VMware End-User Computing business |url=https://blogs.vmware.com/euc/2024/04/introducing-omnissa-the-former-vmware-end-user-computing-business.html |website=VMware End-User Computing Blog |date=April 2024 |access-date=2026-06-15 |archive-url=http://web.archive.org/web/20260208162321/https://blogs.vmware.com/euc/2024/04/introducing-omnissa-the-former-vmware-end-user-computing-business.html |archive-date=2026-02-08}}</ref>


* VMWare Horizon (date): summary of incident (software key)
<gallery mode="packed" heights="200">
* VMWare Workstation Pro (date): summary of incident
File:VMware Fusion and Workstation free announcement.png|VMware's own blog post announcing that Workstation Pro and Fusion became free for personal, educational, and commercial use on November 11, 2024.<ref name="ws-fusion-free" />
* VMWare Esxi (date): summary of incident
File:VMware EUC Omnissa divestiture announcement.png|VMware's blog post introducing Omnissa, the former VMware End-User Computing business sold to KKR.<ref name="omnissa" />
 
</gallery>
==See also==
[[Broadcom Inc.]]
 
<ref>{{Cite news |last=Harding |first=Scharon |date=2025-05-07 |title=VMware perpetual license holders receive cease-and-desist letters from Broadcom |url=https://arstechnica.com/gadgets/2025/05/broadcom-sends-cease-and-desist-letters-to-subscription-less-vmware-users/ |access-date=2025-09-11 |work=Ars Technica |archive-url=https://web.archive.org/web/20251013130617/https://arstechnica.com/gadgets/2025/05/broadcom-sends-cease-and-desist-letters-to-subscription-less-vmware-users/ |archive-date=13 Oct 2025}}</ref><ref>{{Cite web |last=HJForsythe |date=2025-04-15 |title=VMWare threatening perpetual license holders than haven't purchased subcriptions. |url=https://www.reddit.com/r/sysadmin/comments/1jzqbte/vmware_threatening_perpetual_license_holders_than/ |access-date=2025-09-11 |via=Reddit |archive-url=https://web.archive.org/web/20250425092928/https://www.reddit.com/r/sysadmin/comments/1jzqbte/vmware_threatening_perpetual_license_holders_than/ |archive-date=25 Apr 2025}}</ref>


==Alternatives==
==Alternatives==
Alternatives include the popular free and open source project  [https://www.proxmox.com/ Proxmox], which has a less polished user interface but is otherwise functionally very close and is backed by an Austria-based company that offers subscription-based support plans for corporate users and [https://www.qemu.org/ QEMU], a fast emulation software whose name means ‘Quick Emulator’ and is open source.
Customers leaving VMware have moved to both open-source & commercial platforms. Proxmox VE is an open-source server virtualization platform from Proxmox Server Solutions GmbH, with optional paid support subscriptions.<ref name="proxmox">{{Cite web |title=Company |url=https://www.proxmox.com/en/about/about-us/company |website=Proxmox Server Solutions GmbH |access-date=2026-06-15 |archive-url=http://web.archive.org/web/20260529161445/https://www.proxmox.com/en/about/about-us/company |archive-date=2026-05-29}}</ref> QEMU is a free, open-source machine emulator and virtualizer.<ref name="qemu">{{Cite web |title=QEMU |url=https://www.qemu.org/ |website=QEMU |access-date=2026-06-15 |archive-url=http://web.archive.org/web/20260609142659/https://www.qemu.org/ |archive-date=2026-06-09}}</ref> On the commercial side, analysts have called Nutanix the most direct challenger to VMware in hyperconverged infrastructure.<ref name="nutanix">{{Cite web |title=VMware by Broadcom changes to continue in 2025 |url=https://www.techtarget.com/searchdatacenter/news/366617362/VMware-by-Broadcom-changes-to-continue-in-2025 |website=TechTarget |date=2025-01-14 |access-date=2026-06-15}}</ref>


Linux virtualization (e.g. Red Hat Enterprise Virtualization) is available with corporate levels of support. The VMware hypervisor shell is based on Red Hat.  Nutanix offers comparable efficiency to VMware.
==See also==
* [[Broadcom Inc.]]
* [[VMware licensing change since acquisition by Broadcom]]


==References==
==References==
{{reflist}}
{{reflist}}
[[Category:{{PAGENAME}}]]
[[Category:{{PAGENAME}}]]
[[Category:Virtualization software]]
[[Category:Virtualization software]]
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