#broadcom-acquisition

#broadcom-acquisition

The document notes that as of 2024 VMware dominated the server virtualization market with over 96 percent of revenue share, and that none of its rivals can completely match the capabilities of Virtzilla's stack. But Gartner feels "many" of its clients are sufficiently upset by Broadcom's actions, which have usually seen VMware customers' software costs rise 300 to 400 percent, that they have lost trust in the virtualization pioneer and are ready to "explore alternatives for current and/or future infrastructure requirements."

Last month, the supermarket giant announced plans to sue Broadcom for £100 million over VMware licensing contracts. Broadcom bought VMware in 2022 for $61 billion, sparking a backlash from its own customers by changing licensing terms in a way that led to price increases for many. Tesco said via court filings that the licensing changes led to prices it paid for VMware software to jump by 237%, accusing Broadcom of refusing to negotiate and taking advantage of its market dominance to hike up prices.