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AT&T Sues Broadcom Over VMware Support

Sheshagiri Anegondi
Sheshagiri AnegondiManaging Partner, Rythium · Oracle, 1998 to 2015, Vice President Sales
6 September 2024
1 minute read

AT&T sued Broadcom, alleging that it violated past VMware contracts. You can read the court filing.

AT&T and Broadcom in court over VMware support

  • The US telecommunications company AT&T filed a legal action against Broadcom, accusing it of violating a support agreement for VMware software. AT&T says it exercised its right to renew support for VMware products it bought under a perpetual license. Broadcom, which acquired VMware last year, is allegedly demanding additional payments for extended support.
  • AT&T says Broadcom’s actions are part of a pattern of coercive tactics to force customers into unfair deals. It argues that Broadcom’s refusal to extend support is a threat to US national security, because some of its servers are dedicated to government agencies.
  • Without Broadcom’s support, AT&T fears widespread network disruptions that could affect millions of customers. It is asking the court to stop Broadcom from ending support and to confirm its right to renew.
  • Broadcom strongly disputes the claims. It says VMware has been moving to a subscription model, which is standard in the industry, for several years.

The outcome could matter to VMware customers dealing with Broadcom’s approach to its services. If Oracle runs on your VMware estate, see Oracle on VMware licensing. We help customers reduce software costs; see 5 ways to reduce enterprise software licensing costs.

About the author

Sheshagiri Anegondi

Managing Partner of Rythium Technologies. Seventeen years at Oracle, from 1998 to 2015, in leadership roles including Vice President Sales, after Compaq and Digital Equipment Corporation.

Author of “Licensing Oracle: The Reference Manual for Managing Oracle License Compliance & Procuring Oracle Software, Hardware, Cloud & Services” (Notion Press, 2021) (ISBN 10: 1639046887).

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