The Broadcom and VMWare story continues to evolve. Broadcom is facing criticism from a European cloud trade body, CISPE, over changes it has made to VMware licensing structures. CISPE has called for an investigation into Broadcom’s actions, claiming the changes will harm the region’s cloud infrastructure. Broadcom’s acquisition of VMware in 2023 has simplified software licensing, with customers being pushed towards a subscription-only model. CISPE argues that this move, coupled with dramatic price hikes, is holding the sector to ransom and limiting customer choices. The trade body has called for Broadcom to be recognized as a designated gatekeeper under the Digital Markets Act.
I’m slightly out of order for those on the podcast feed, as I also covered their new white-label option on the live show yesterday. That will drop in this feed on the weekend.
Way to really step in, Broadcom. Is it illegal? I don’t think so, but I’m not a lawyer, and especially not an EU one. Just note that making this significant change to your business model is difficult.