Broadcom’s Cease-and-Desist Strategy Targets VMware License Holders
Following its acquisition of VMware in November 2023, Broadcom has begun to issue cease-and-desist letters to owners of perpetual VMware licenses whose support contracts have expired. This move, confirmed by Ars Technica, raises significant concerns among users regarding software support and licensing agreements.
The Transition from Perpetual Licenses to Subscriptions
After ending the sale of VMware’s perpetual licenses, Broadcom is navigating a contentious strategy that encourages existing users to transition to subscription-based models. While users can still utilize their previously purchased software, they no longer have the option to renew support services unless they had a prior agreement that permits such action. Reports indicate that costs associated with VMware subscriptions have surged by up to 300 percent, prompting many users to explore alternative solutions.
Cease-and-Desist Notifications: The Details
Recent communications from Broadcom have combined users’ concerns with a sense of urgency. Reports have surfaced of users receiving cease-and-desist letters shortly after their support contracts expired. The letter, signed by Broadcom managing director Michael Brown, warns users against using any maintenance or security updates issued after their contract expiration.
The letter specifies that “any such use of Support past the Expiration Date constitutes a material breach of the Agreement with VMware and an infringement of VMware’s intellectual property rights.”
Implications for Unsupported Users
Some users have opted to run VMware unsupported, as they search for alternatives such as competing products or even open-source solutions. However, the risk of non-compliance with Broadcom’s directives leads to potential legal repercussions, including audits, as detailed in their correspondence with users.
CTO Dean Colpitts of the Members IT Group, a Canadian managed services provider, highlighted the challenges customers face: “Our biggest concern is that staff accidentally apply patches to those customers who are running unsupported software.” Although many users have ceased receiving updates after their contracts expired, they still receive letters from Broadcom, sometimes mere days after expiration.
User Experiences and Reactions
The broader community has expressed unease over these letters, with some believing that they imply a breach of contract. However, reports suggest that these letters are being sent preemptively, regardless of actual software usage. Legal teams have been consulted by some affected users, showcasing a significant level of concern.
A Shift in User Trust
The ramifications of Broadcom’s enforcement of these cease-and-desist letters has begun to erode trust among VMware users. Many small to medium-sized businesses are reconsidering their relationship with VMware due to the abrupt changes in licensing and price structures. Several firms report migrating away from VMware, reflecting a growing skepticism regarding Broadcom’s commitment to customer service.
Conclusion
As the landscape continues to shift following Broadcom’s acquisition and subsequent policy changes, VMware’s user base finds itself navigating a period of uncertainty. While Broadcom’s fiscal strategies appear successful, user satisfaction and trust are crucial elements that the company must address moving forward.
This overview is based on original reporting from Ars Technica.