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EU complaint over Broadcom unfair VMware licensing

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Brandon Lee
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Broadcom is facing heat from the EU over VMware licensing:

  1. EU Investigation: Broadcom is under investigation by the European Union following complaints about its software licensing practices concerning VMware, as reported by Belgium's Beltug, France's Cigref, and Germany's Voice.

  2. Customer Discontent: VMware customers, particularly in the education sector, have expressed dissatisfaction due to significant increases in licensing fees after education discounts were removed. The switch from per processor to per core licensing has also negatively affected organizations using powerful multi-core servers.

  3. Broadcom's Market Conduct: Business user associations from Belgium, France, Germany, and the Netherlands have condemned Broadcom's actions in the EU regarding VMware products, citing previous negative experiences from Broadcom’s acquisitions of CA Technologies and Symantec.

  4. Broadcom's Response: Broadcom's CEO, Hock Tan, has responded to the criticism by stating that changes in licensing and partnership programs are meant to create value for customers and ensure consistency across the ecosystem.

  5. Changes to Partner Programs: Amidst criticism, Broadcom is adjusting its partner programs to integrate VMware more closely with Broadcom's existing systems. This includes expanding partner tiers, offering discounts, and ensuring licensing metric consistency across cloud and end-customer environments.

  6. Licensing Metric Standardization: In response to concerns about unfair licensing practices, Broadcom is standardizing the licensing metric to per-core across all cloud providers and ensuring license portability, aiming to reduce customer costs and increase competition and choice in the market.

Posted : 17/04/2024 3:12 pm