HomeTechnologyBroadcom pressures VMware prospects with cease-and-desist letters over perpetual licenses

Broadcom pressures VMware prospects with cease-and-desist letters over perpetual licenses


Editor’s take: After buying VMware in 2023, Broadcom has wasted no time reshaping the corporate right into a profit-focused operation, usually on the expense of excellent buyer relations. The most recent transfer on this contentious technique includes cease-and-desist letters despatched to VMware customers, warning that they will not obtain new patches or bug fixes except they proceed paying for official assist.

Broadcom desires to push each single VMware buyer “proudly owning” a perpetual license to a brand new subscription-based contract, and is keen to antagonize your entire VMware userbase to succeed in this objective. Firms and professionals nonetheless utilizing VMware merchandise have just lately began receiving a brand new form of cease-and-desist letter, with Broadcom asking for brand spanking new assist contracts and even threatening an energetic “inquiry” into customers’ programs.

The letters are seemingly focusing on VMware prospects that acquired a perpetual license earlier than Broadcom digested the virtualization large. Some organizations are threatened as a result of they selected to not convert the earlier license to a subscription, as they’re doubtless in search of different options or do not need to give in to Broadcom unreasonable requests.

The wording utilized by Broadcom in its letters focuses on official assist companies, that are not out there if a software program product was beforehand bought with a perpetual license. Subsequently, Broadcom “calls for” that such prospects cease putting in new updates to VMware merchandise, together with upkeep releases, minor releases, patches, or safety fixes. The one exception is about zero-day vulnerabilities for vSphere 7.x and eight.x, Broadcom mentioned, and solely when the failings have a CVSS rating higher than or equal to 9.0.

Broadcom now treats patches and bug fixes as a part of its official assist companies, successfully forcing firms to pay for the proper to put in updates. Based on the corporate, making use of a patch with out an energetic subscription violates VMware’s software program license and infringes on its mental property – grounds Broadcom seems keen to pursue in court docket.

Broadcom has escalated the state of affairs by claiming the proper to audit prospects, aiming to catch anybody putting in official patches on perpetually licensed software program with out an energetic assist contract. Critics have dubbed these cease-and-desist letters “nastygrams,” all signed by Mike Brown, who serves as Broadcom’s Managing Director.

Dean Colpitts, CTO of Canadian service supplier Members IT Group, advised Ars Technica some prospects obtained Broadcom’s letter shortly after their assist contracts expired. Whereas a couple of organizations pushed again with authorized groups, the tactic has unfold confusion inside on-line communities about Broadcom’s motives.

Broadcom has repeatedly proven a willingness to pressure a subscription mannequin on most VMware customers. The corporate has imposed steep value hikes and brought authorized motion towards main ICT companies refusing to pay for brand spanking new assist licenses.

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