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VMware price hikes? Between 800 and 1,500%, claim Euro customers
- European Cloud Competition Observatory claims that Broadcom has increased VMware licensing costs by 800% to 1500% since taking over, forcing customers to accept new terms with lack of alternatives in the industry.
- Many CISPE members had to renew licensing agreements under pressure, facing financial burdens due to Broadcom's revamped pricing.
- Broadcom terminated existing agreements unilaterally and transitioned to subscription-only models with substantial price hikes.
- Customers now face upfront payments and minimum three-year commitments under the new licensing framework.
- ECCO criticizes Broadcom's pricing strategy, likening it to paying for assumed usage regardless of actual consumption.
- Broadcom ended VMware's channel program for Cloud Services Providers, impacting European cloud infrastructure providers and customers.
- Price hikes of 800% to 1500% were reported by CISPE members, with some facing tenfold increases.
- Broadcom offers 30 to 50% discounts on price hikes for three-year fixed contracts and has sent cease-and-desist letters to some perpetual license holders.
- ECCO demands fair licensing practices from Broadcom, urging flexibility, advance notice of changes, and alignment with cloud infrastructure realities.
- Regulatory action is deemed necessary by ECCO and CISPE due to Broadcom's imposed licensing terms, with a complaint filed by German IT customer association VOICE.
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