Broadcom has raised VMware licensing costs between eight to 15 times since its acquisition, prompting significant concern among trade and end customers. The European Cloud Competition Observatory (ECCO) reports that many CISPE members had to renew agreements under considerable pressure due to a lack of alternatives. The company eliminated perpetual licenses and adopted a subscription-only model with three-year commitments, leading to substantial financial burdens for clients as they navigated imposed terms and abrupt contract terminations without sufficient notice from Broadcom.
Broadcom has drastically increased VMware licensing costs, leaving customers with few alternatives to comply with its new pricing structure.
The ECCO report highlights how customers felt pressured into renewing contracts due to Broadcom's monopoly behavior and lack of options.
Broadcom discontinued legacy licensing models and forced a subscription model with significant financial burdens, affecting many businesses.
Existing licensing agreements were terminated abruptly to push clients into the new terms, according to the ECCO report.
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