Industry Pushback Against Broadcom's VMware Changes Sparks Calls for Government Intervention

By
Shirin Azizova
1 min read

Industry groups are pushing for government intervention in response to Broadcom's contentious changes to VMware. The acquisition of VMware has led to rising costs and discontent among customers and partners, with complaints of price jumps of up to 600%. Despite Broadcom executives defending the new subscription model, there's still strong opposition from various industry groups, who have called for federal regulators to intervene. European associations have sent a letter strongly condemning Broadcom's business practices and asking the European Commission to take action. The letter cites instances of increased prices, non-fulfillment of previous agreements, and a loss of knowledge. Moreover, concerns have been raised about Broadcom's impact on the European economy and the power of hyperscalers. The push for government intervention has been fueled by recent antitrust probe inquiries into Broadcom's practices. Moreover, VMware rivals are capitalizing on the disruption, while executives from Broadcom have planned updates for VMware's Cloud Foundation, aiming to emphasize the value of the new VMware. These updates are intended to make Cloud Foundation easier to implement than before. The continued industry turmoil indicates the need for more clarity and resolution in the Broadcom-VMware transition.

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