VMware licensing change since acquisition by Broadcom: Difference between revisions
m InTransparencyWeTrust moved page VMware extraordinary price increase for licenses since acquisition by Broadcom to VMware licensing change since acquisition by Broadcom: Improve tone of the article title |
Tone down the article |
||
| Line 6: | Line 6: | ||
|ArticleType=Product | |ArticleType=Product | ||
}}{{ToneWarning}} | }}{{ToneWarning}} | ||
On 22 November 2023, [[Broadcom Inc.]] completed the acquisition of VMware.<ref>{{Cite news |last=Yoo |first=Ji |date=2023-11-23 |title=Broadcom Completes Acquisition of VMware |url=https://investors.broadcom.com/news-releases/news-release-details/broadcom-completes-acquisition-vmware |url-status=live |archive-url=https://web.archive.org/web/20231201233650/https://investors.broadcom.com/news-releases/news-release-details/broadcom-completes-acquisition-vmware |archive-date=2023-12-01 |access-date=2025-09-06 |work=Broadcom Inc.}}</ref> Perpetual licenses for the software were ended | On 22 November 2023, [[Broadcom Inc.]] completed the acquisition of VMware.<ref>{{Cite news |last=Yoo |first=Ji |date=2023-11-23 |title=Broadcom Completes Acquisition of VMware |url=https://investors.broadcom.com/news-releases/news-release-details/broadcom-completes-acquisition-vmware |url-status=live |archive-url=https://web.archive.org/web/20231201233650/https://investors.broadcom.com/news-releases/news-release-details/broadcom-completes-acquisition-vmware |archive-date=2023-12-01 |access-date=2025-09-06 |work=Broadcom Inc.}}</ref> Perpetual licenses for the software were ended and changed to a subscription based model.<ref>{{Cite web |last=Walsworth |first=Rick |date=2024-01-22 |title=VMware End Of Availability of Perpetual Licensing and SaaS Services |url=https://blogs.vmware.com/cloud-foundation/2024/01/22/vmware-end-of-availability-of-perpetual-licensing-and-saas-services/ |url-status=live |archive-url=https://web.archive.org/web/20240124152826/https://blogs.vmware.com/cloud-foundation/2024/01/22/vmware-end-of-availability-of-perpetual-licensing-and-saas-services/ |archive-date=2024-01-24 |access-date=2025-09-06 |website=VMware}}</ref> Customers report that this new model results in higher overall pricing for their use of VMware. Several large customers have started legal action against Broadcom. | ||
==Background== | ==Background== | ||
In 2025, Broadcom | In 2025, Broadcom initiated the second phase of its VMware consolidation.<ref name=":2">{{Cite news |last=Ashare |first=Matt |date=2025-09-05 |title=Broadcom enters ‘second phase’ of VMware consolidation |url=https://www.ciodive.com/news/broadcom-vmware-vcf-adoption-second-phase/759406/ |access-date=2025-09-06 |work=TechTarget Industry Dive: CIODive}}</ref> The CEO stated that "more than 90% of VMware’s largest 10,000 customers have shifted from perpetual licenses to the subscription-based".<ref name=":2" /> | ||
Besides the new pricing models since the acquisition, Broadcom increased the minimum amount of cores from 16 to 72 cores in April 2025; which need to be payed | Besides the new pricing models since the acquisition, Broadcom increased the minimum amount of cores from 16 to 72 cores in April 2025; which need to be payed regardless of use of those 72 cores.<ref>{{Cite news |last=Robu |first=Raluca |date=2025-05-06 |title=VMware Price Increase in 2025: What You Need to Know |url=https://www.colocationplus.com/blog/vmware-price-increase-in-2025-what-you-need-to-know |url-status=live |archive-url=https://web.archive.org/web/20250521023945/https://www.colocationplus.com/blog/vmware-price-increase-in-2025-what-you-need-to-know |archive-date=2025-05-21 |access-date=2025-09-07 |work=ColocationPLUS}}</ref><ref name=":3">{{Cite news |last=Sharwood |first=Simon |date=2025-03-28 |title=VMware distributor Arrow says minimum software subs set to jump from 16 to 72 cores |url=https://www.theregister.com/2025/03/28/arrow_vmware_licensing_change/ |url-status=live |archive-url=https://web.archive.org/web/20250802114935/https://www.theregister.com/2025/03/28/arrow_vmware_licensing_change/ |archive-date=2025-08-02 |access-date=2025-09-07 |work=The Register}}</ref> In addition, being to late with the license renewal causes an additional 20% cost penalty.<ref name=":3" /> | ||
==End of perpetual licenses== | ==End of perpetual licenses== | ||
| Line 20: | Line 20: | ||
===Dutch Ministry of Infrastructure (Rijkswaterstaat v. Broadcom Inc.)<ref>{{Cite web |date=2025-06-27 |title=ECLI:NL:RBDHA:2025:11349 |url=https://uitspraken.rechtspraak.nl/details?id=ECLI:NL:RBDHA:2025:11349 |access-date=2025-09-06 |website=De Rechtspraak |language=nl}}</ref>=== | ===Dutch Ministry of Infrastructure (Rijkswaterstaat v. Broadcom Inc.)<ref>{{Cite web |date=2025-06-27 |title=ECLI:NL:RBDHA:2025:11349 |url=https://uitspraken.rechtspraak.nl/details?id=ECLI:NL:RBDHA:2025:11349 |access-date=2025-09-06 |website=De Rechtspraak |language=nl}}</ref>=== | ||
On Friday, June 27, 2025, the summary proceedings judge granted Rijkswaterstaats request. Broadcom must continue to provide | On Friday, June 27, 2025, the summary proceedings judge granted Rijkswaterstaats (RWS) request. Broadcom must continue to provide RWS with support for a period of 2 years under the existing conditions and price.<ref name=":0">{{Cite web |date=2025-07-03 |title=Rijkswaterstaat wins summary proceedings against Broadcom over continuation of support |url=https://openrijk.nl/en/rijksinstellingen/rijkswaterstaat/artikel/rijkswaterstaat-wint-kort-geding-tegen-broadcom-over-voortzetting-van-support/rijkswaterstaat-wins-summary-proceedings-against-broadcom-over-continuation-of-support |url-status=live |archive-url=https://web.archive.org/web/20250906145425/https://openrijk.nl/en/rijksinstellingen/rijkswaterstaat/artikel/rijkswaterstaat-wint-kort-geding-tegen-broadcom-over-voortzetting-van-support/rijkswaterstaat-wins-summary-proceedings-against-broadcom-over-continuation-of-support |archive-date=2025-09-06 |access-date=2025-09-06 |website=Openrijk}}</ref> | ||
The judge ruled: "Unlike Broadcom et al. have stated, there was [thus] no question of free commercial negotiations between two large professional parties; one could say that RWS was in a bind. The judge ruled that RWS must be allowed to part ways with VMware/Broadcom and still receive support during that process. By failing to do so, Broadcom acts in violation of the care that is owed to RWS in social traffic."<ref name=":0" /> | The judge ruled: "Unlike Broadcom et al. have stated, there was [thus] no question of free commercial negotiations between two large professional parties; one could say that RWS was in a bind. The judge ruled that RWS must be allowed to part ways with VMware/Broadcom and still receive support during that process. By failing to do so, Broadcom acts in violation of the care that is owed to RWS in social traffic."<ref name=":0" /> | ||
| Line 40: | Line 40: | ||
==Consumer response== | ==Consumer response== | ||
This section will highlight the cost hikes as those are often also reported by the contracted parties. | |||
*CISPE's ECCO found that their members costs for VMware increased 8 to 15 times compared to the previous pricing model.<ref>{{Cite news |last=Hale |first=Craig |date=2025-05-23 |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 |url-status=live |archive-url=https://web.archive.org/web/20250726024605/https://www.techradar.com/pro/broadcom-has-allegedly-hiked-vmware-costs-between-800-and-1-500-percent |archive-date=2025-07-26 |access-date=2025-09-06 |work=TechRadar}}</ref> | *CISPE's ECCO found that their members costs for VMware increased 8 to 15 times compared to the previous pricing model.<ref>{{Cite news |last=Hale |first=Craig |date=2025-05-23 |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 |url-status=live |archive-url=https://web.archive.org/web/20250726024605/https://www.techradar.com/pro/broadcom-has-allegedly-hiked-vmware-costs-between-800-and-1-500-percent |archive-date=2025-07-26 |access-date=2025-09-06 |work=TechRadar}}</ref> | ||
*The reliance on VMware is high across many different sectors and is not something that can easily be replaced by other software on a whim | *The reliance on VMware is high across many different sectors and is not something that can easily be replaced by other software on a whim.<ref>{{Cite news |last=Jacobs |first=Skye |date=2025-01-29 |title="We loved VMware. Now we hate it": Customers react to Broadcom's changes |url=https://www.techspot.com/news/106547-loved-vmware-now-hate-customers-react-broadcom-changes.html |access-date=2025-09-06 |work=TechSpot}}</ref> | ||
==References== | ==References== | ||
{{reflist}} | {{reflist}} | ||
[[Category:VMWare]] | [[Category:VMWare]] | ||