"After a 10 plus year strategic relationship with Broadcom ... I am sad to report that we appear to be at an impasse on our VMware deal," Johnson wrote on August 19. "The latest offer that we have received would put us at an average of $REDACTED per year for a 5-year deal, where we currently pay $REDACTED per year to support previously purchased perpetual licenses with a right to renew support through September, 2026. This proposed annual increase of +1,050 percent in one year is extreme and certainly not how we expect strategic partners to engage in doing business with AT&T."
"My team and others at AT&T have been exploring a possible migration away from the VMware software since Broadcom announced in December 2023 that it would force customers to employ a new, more costly subscription model for its VMware software licenses," the filing reads.
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