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Broadcom’s VMware Strategy Faces Regulatory Pushback
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1 year ago

Broadcom’s VMware Strategy Faces Regulatory Pushback

Global

News Summary

Broadcom is facing significant criticism from VMware cloud partners, as evidenced by a report from the European Cloud Competition Observatory (ECCO). The report highlights legal and ethical concerns surrounding VMware’s business model under Broadcom, particularly focusing on the shift to a subscription-based framework. VMware customers have reportedly faced financial burdens and operational challenges due to these changes. ECCO, representing cloud service provider customers and partners, has called for firm regulatory action, citing issues like unfair software licensing practices and litigation threats. Broadcom’s recent adjustments to partner incentives and tiering structures have also been met with opposition.

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