Digital Event Horizon
Broadcom has begun conducting audits on former customers who declined to subscribe to one of its VMware bundles after their support contracts expired. The auditors are armed with cease-and-desist letters that warn users of potential financial repercussions if they fail to comply with VMware's licensing terms.
Broadcom is conducting audits on former VMware customers who declined to subscribe to a bundle after their support contracts expired.The auditors are armed with cease-and-desist letters warning users of potential financial repercussions if they fail to comply with VMware's licensing terms.Broadcom stopped selling perpetual licenses for VMware in November 2023, opting instead for bundled SKUs that feature multiple VMware offerings.Customers who opted to continue using their existing perpetual licenses are facing increased costs and limited options for maintaining their software.The cease-and-desist letters inform recipients of potential audits and the consequences of non-compliance, with Broadcom promising to use its time efficiently during the auditing process.
In a move that has sent shockwaves through the tech industry, Broadcom, the parent company of VMware, has begun conducting audits on former customers who declined to subscribe to one of its VMware bundles after their support contracts expired. The auditors are armed with cease-and-desist letters that warn users of potential financial repercussions if they fail to comply with VMware's licensing terms.
At the heart of this story is a complex web of licensing agreements, software usage, and corporate cost-cutting measures. In November 2023, Broadcom stopped selling perpetual licenses for VMware, opting instead to push a limited number of bundled SKUs that feature multiple VMware offerings. This shift in strategy has led to a significant increase in costs for customers who were previously using the perpetual licenses.
According to sources, some VMware users have opted to continue using their existing perpetual licenses despite the increased costs. However, Broadcom refuses to renew most of these clients' support services, leaving them with limited options for maintaining their software.
The cease-and-desist letters sent by Broadcom are formal warnings that inform recipients of potential audits and the consequences of non-compliance. The letters also state that Broadcom will use its time "as efficiently and productively as possible" to minimize disruption during the auditing process.
One recipient of these letters, a Dutch firm's security professional, expressed concerns about the implications of the audit and said that they expect a big financial impact for their employer. The employee noted that their company had been using VMware Cloud Foundation and vSphere before deciding not to extend its support contract due to the costs. They also stated that only one update had been issued to their VMware offerings since the support ended, and they denied receiving a cease-and-desist letter from Broadcom despite no longer using the software.
Broadcom's actions have soured the image of the company among some current and former customers, with many calling for regulation of its practices. The acquisition of VMware by Broadcom has proven lucrative, but as the company approaches two years of ownership, there are still concerns about the licensing terms and their impact on customers.
In a move that has sparked debate, some argue that Broadcom's aggressive approach is necessary to ensure compliance with license agreements. Others, however, believe that the company is wasting its time by investigating organizations that are not violating agreements.
Regardless of one's perspective, it is clear that Broadcom's actions have significant implications for VMware customers and the tech industry as a whole. As the company continues to assert its dominance in the virtualization market, it will be interesting to see how its licensing strategies evolve in the coming months and years.
Related Information:
https://www.digitaleventhorizon.com/articles/The-Auditing-Arms-of-Broadcom-A-Cautionary-Tale-of-VMwares-License-Aggression-deh.shtml
https://arstechnica.com/information-technology/2025/06/vmware-perpetual-license-holder-receives-audit-letter-from-broadcom/
Published: Thu Jun 26 17:41:33 2025 by llama3.2 3B Q4_K_M
