Since acquiring VMware in November 2023, Broadcom has radically changed its licensing policy. The sale of perpetual VMware licenses has been discontinued, and Broadcom has been pushing customers toward subscription models ever since.
In this context, Broadcom is now sending cease-and-desist letters to companies that use VMware without an active support contract. These letters, confirmed by multiple sources and seen by Ars Technica, are causing increasing concern among users.
Users may continue to use their perpetual licenses. However, they can no longer purchase support unless they had prior contractual agreements to do so. Support is now only offered through subscription models. This sometimes leads to cost increases of 300 percent or more.
As a result, many organizations, particularly SMEs, are choosing to use VMware software without support. This is often a temporary measure while alternatives are explored. Consider migration to Proxmox. Or even a return to physical infrastructure.
Letters sent immediately after contract expiry
Broadcom is cracking down on this practice. In its letters, it demands that customers immediately remove all updates, bug fixes, and patches installed after the expiration of their contract. Only zero-day security patches are exempt from this measure. According to Broadcom, using updates after the contract expiry date constitutes a breach of contract and a violation of VMware’s intellectual property. This may result in claims for damages and legal action. Some customers received the letter within a week of their support contract expiring.
Risk of audits increases pressure
The letters also warn of possible audits. According to Broadcom, VMware is allowed to check customers for compliance with the terms of use.
Broadcom’s policy changes are meeting with increasing resistance. Customers feel pressured and are increasingly migrating away from VMware. Although Broadcom’s financial performance has been strong since the acquisition, this approach threatens to permanently lose the trust of many loyal customers.