Thought Leadership
Broadcom has begun sending warning letters to VMware users who continue to use the virtualization software with expired support contracts. According to Broadcom, anyone who continues to benefit from VMware support after the contract has expired is in breach of the user agreements.
As Ars Technica has learned, these warning letters demand that users remove any patches, updates or bug fixes installed after the support contract expires. The letters threaten legal consequences and point out that Broadcom could carry out audits to check compliance.
Broadcom’s strategy: pushing customers towards the subscription model
Since the acquisition of VMware in November 2023, Broadcom has stopped selling perpetual licenses and pushed customers to subscription models. The cost increase is significant – in some cases up to 300% or more compared to the previous license model.
Many VMware users have opted to continue using the software without support, often while looking for alternatives.
Warnings despite compliance
Even customers who have not installed any updates since their support contracts expired report receiving these warnings. The CTO of a Canadian managed service provider told Ars Technica that one customer received such a letter just six days after his support contract expired.
Users are even reporting warnings on the Internet, even though they have already switched completely from VMware to alternatives. Some affected companies have already called in their legal departments.
Possible audits announced
The warning letters, signed by Broadcom’s Managing Director Michael Brown, also warn of possible audits:
“Failure to comply with these requirements may result in a breach of contract by the customer, and VMware may exercise its right to audit the customer as well as other available contractual or legal remedies.”
Small and medium-sized companies in particular have been affected by Broadcom’s change in strategy. Many have had to reduce or terminate their business relationships with VMware. The aggressive approach could further damage Broadcom’s reputation with current and former customers, even though the financial results since the VMware acquisition indicate that the company will stick to its business plan.
