- ECCO published its second report on Broadcom, not citing any improvement
- The voice of Germany drew the attention of the European Commission
- Perpetual licenses have been terminated, many forced customers to pay in advance for three years
Broadcom would have increased VMware license costs from eight to 15 times for many customers after eliminating perpetual and paid licenses, replacing them with group subscriptions which require a minimum contract of three years.
The European Cloud Competition Observatory (ECCO) compared the new price to payment of continuous and continuous use, regardless of actual consumption.
It has been revealed that many CISPE members have signed new pressure contracts to maintain connected services while lacking viable alternatives, some former contracts over 10 years old abruptly terminated.
“The role of the ECCO includes the highlighting of current or new software license practices of all software suppliers in the cloud sector. As such, it has already published a critical report of Broadcom modifications in license practices after its acquisition of VMware in November 2023,” wrote ECCO.
ECCO said Broadcom continues to promulgate an “increasingly disputed approach to its partners and customers”, accusing the company of participating in anti -competitive actions. The Europe Observatory stressed that he had only one meeting with Broadcom since his acquisition of VMware, but no progress has been made.
“This second report reveals that Broadcom’s broad and brutal taxation of unfair contract conditions for the cloud infrastructure service provides tireless,” added the body.
In May 2024, Cispe criticized the company for needing an initial payment for its three -year contracts, declaring that “Broadcom must do more”.
Since then, the German voice, an association of IT users, has sought to file an official complaint against Broadcom with the European Commission.
CISPE Secretary General, Francisco Mignorance, said: “Unlike Microsoft, Broadcom shows no interest in finding solutions, or even working with European cloud infrastructure providers. Broadcom can report that most have signed new contracts, but we know that these are punitive actions and threatened the viability of service providers.”
Techradar Pro asked Broadcom to comment on the current affair, but we did not receive an immediate response.
