- ECCO has released its second report on Broadcom and quotes no improvement
- Germany’s voice has brought VMware -prices to Europe -Commission’s attention
- Eternal licenses were completed, with many customers forced to pay in advance for three years
Broadcom has reportedly increased VMware license costs by eight to 15 times for many customers after removing eternal and pay-as-you-go licenses that replace them with total subscriptions that require a three-year minimum contract.
The European Cloud Competition Observatory (ECCO) has compared the new pricing with paying for full, continuous use regardless of actual consumption.
It was revealed that many CISPE members have signed new contracts under pressure to keep services connected while missing viable alternatives, with some old contracts over 10 years suddenly terminated.
“The role of ECCO includes highlighting ongoing or new unreasonable software licensing practices from all software vendors in the Sky sector. As such, it has already published a report critical of Broadcom’s changes in licensing practice following its acquisition of VMware in November 2023,” Ecco wrote.
Ecco said Broadcom continues to adopt an “increasingly legal approach to its partners and customers” accusing the company of participating in competitive actions. Europe’s Observatory emphasized that it has only had a meeting with Broadcom since its VMware acquisition, but no progress was made.
“This second report finds out that Broadcom’s broad and brutal introduction of unreasonable contract terms for Sky Infrastructure Service continues to provide unabated,” the body added.
In May 2024, Cispe criticized the company for demanding advance payment for his three -year contracts and said “Broadcom should do more.”
Since then, Germany’s voice, an association of IT users, has been trying to file a formal complaint against Broadcom to the Europe Commission.
Cispe Secretary Secretary Francisco Mignorance commented: “Unlike Microsoft, Broadcom shows no interest in finding solutions or even to work with European Sky Infrastructure Providers. Broadcom can report that most people have signed new contracts, but we know these are punished and threaten the viability of service providers The VMware-Ecosystem Meals.
Techradar Pro have asked Broadcom to comment on the ongoing case, but we did not receive an immediate answer.
