VMware extraordinary price increase for licenses since acquisition by Broadcom

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On 22 November 2023, Broadcom Inc. completed the acquisition of VMware. Perpetual licenses for the software were ended, and changed to a subscription based model. This results in extraordinary price increases all over the world, as the software is used globally, which also starts a chain of legal action globally against Broadcom.

Background

Against all criticism, in 2025 Broadcom still decided to initiate the second phase of its VMware consolidation. The CEO stated that "more than 90% of VMware’s largest 10,000 customers have shifted from perpetual licenses to the subscription-based".

End of perpetual licenses

Broadcom's response

Broadcom argues that they have listened to their customers. They close their response to saying they will complete the transition plan to a subscription model for VMware.

Lawsuits

Dutch Ministry of Infrastructure (Rijkswaterstaat v. Broadcom Inc.)

On Friday, June 27, 2025, the summary proceedings judge granted Rijkswaterstaats request. Broadcom must continue to provide us with support for a period of 2 years under the existing conditions and price.

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.

The ruling includes statements about earlier investigations. For instance, on July 22nd 2024, the European Commission stated that they would initiate investigations. They received complaints of the licensing model after Broadcom acquired VMware.

European Cloud Providers

On Wednesday 30, July 30, 2025, the trade body for European Cloud providers CISPE started legal action against the European Commission. The legal action focuses on the acquisition approval by the EU Commission; arguing the remedies taken were "irrelevant to the real threat".

Consumer response

Instead of focusing on the outrage, 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.
• 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, which fuels further frustration.