Broadcom hits back at AT&T in VMware support dispute

AT&T sought an injunction to force Broadcom to continue offering support for VMware’s products under the terms of its perpetual license, which AT&T claimed was part of the original agreement with VMware.

AT&T and Broadcom did not immediately respond to a request for comment.

Broadcom’s end to perpetual VMware licenses

Broadcom’s push to transition VMware customers to subscription models has raised concerns across the industry. Many VMware clients, who held perpetual licenses, have resisted the shift, arguing that Broadcom’s new bundles often include software and services they don’t need.

Analysts have noted that, while Broadcom claims the bundles offer long-term value, the shift to subscriptions generally leads to higher costs for customers in the short term.

“A subscription model is not necessarily all bad,” said Mukesh Ranjan, VP at Everest Group. “Many mature enterprises are not interested in changing too much of their estate and a subscription model makes it easier for them in terms of contracting, relationships with software vendors, access to the right talent, and often better pricing than a licensing structure.”

“However,” Ranjan pointed out, “in the case of Broadcom, the subscription bundling without allowing a licensing option, showcases an intent to generate higher revenue for itself rather than improve customer relationships or other technical improvements.”