- ECCO has published its second report on Broadcom, citing not improvements
- The voice of Germany has brought VMware’s price to the attention of the European Commission
- Perpetual licenses were finished, with many customers forced to pay for three years
Broadcom has supposedly increased VMware license costs by eight to 15 times for many customers after eliminating perpetual and payment licenses for use, replacing them with grouped subscriptions that require a minimum contract of three years.
The European Competition Observatory of Cloud (ECCO) has compared the new price to pay the complete and continuous use, regardless of real consumption.
It was revealed that many CISPE members have signed new contracts under pressure to maintain connected services while lacking viable alternatives, with some old contracts for more than 10 years ending abruptly.
“The ECCO role includes continuing continuous or new practices of unfair software license of any software provider in the cloud sector. As such, it has already published a critical report of Broadcom changes in license practices after its acquisition of VMware in November 2023,” Ecco wrote.
Ecco said Broadcom continues to promulgate an “increasingly litigious approach to its partners and customers”, accusing the company of participating in anti -competitive actions. The European Observatory emphasized that it has only had a meeting with Broadcom since its acquisition of VMware, but did not advance.
“This second report considers that the broad and brutal imposition of Broadcom of the terms of the unfair contract for the cloud infrastructure service continues incessantly,” added the body.
In May 2024, CISPE criticized the company for requiring the initial payment of its three -year contracts, stating that “Broadcom must do more.”
Since then, the voice of Germany, an association of IT users, has tried to file a formal complaint against Broadcom before the European Commission.
The general secretary of CISPE, Francisco Mignorance, commented: “Unlike Microsoft, Broadcom shows no interest in finding solutions, or even working with European cloud infrastructure suppliers. Broadcom can report that most have signed new contracts, but we know that these are punitive and threaten the viability of the providers of blocked services in the VMware ecosystem.
Techradar Pro He has asked Broadcom to comment on the current matter, but we do not receive an immediate response.
