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Broadcom's recent attempt to implement a shocking 1,050% price increase on VMware products for AT&T has escalated into a significant legal battle, raising serious concerns about the future of corporate tech partnerships. AT&T is taking a stand, asserting its rights under an existing licensing agreement that guarantees two more years of support. They argue that this extreme price hike is not just unacceptable but also undermines the foundation of strategic partnerships, which are built on mutual respect and fair negotiations. Broadcom’s shift to a subscription-only model could dramatically impact how large enterprises budget for essential technology, potentially squeezing their financial resources. In a poignant email from AT&T's Susan Johnson, she articulated the profound disappointment with Broadcom's demands, describing the proposed terms as "extreme." The implications are significant: AT&T is now contemplating a costly migration away from VMware technology, with estimates ranging from $40 million to $50 million. This transition involves not just financial investment but also extensive time and engineering efforts, which could disrupt critical services and operations that rely on VMware's integrated solutions. This unfolding situation highlights a broader trend in the tech industry, where companies are increasingly moving toward subscription models that may not align with the financial realities of their partners. It underscores the importance of transparent agreements and open communication in business relationships. As we navigate these turbulent waters, it’s crucial for companies to remain vigilant and adaptable to changing circumstances, ensuring that they are positioned to respond effectively to such drastic shifts. This scenario raises important questions for all of us in the industry: How do we ensure that our partnerships remain fair and sustainable? What strategies can we adopt to mitigate risks associated with sudden pricing changes? Let’s come together to share insights and best practices for fostering stronger, more resilient partnerships in the tech landscape. Your thoughts and experiences are vital as we navigate these challenges. #Broadcom #ATT #VMware #BusinessStrategy #TechNews #LegalBattle #Partnerships #SubscriptionModel #TechIndustry #CloudComputing #CorporateNegotiation #ITStrategy #SustainableBusiness #IndustryInsights

Unceremoniously dumping VMware’s treasured perpetual licences, Broadcom now expects customers to pay regular subscription costs. That’s echoed by the closure of over two dozen VMware products, even as others were bundled together, potentially forcing customers to pay for services they don’t even need. The consequences here are eye-watering. Some VMware customers face price hikes of 1,200%, with organisations from education to healthcare all facing enormous bills. Nor are enterprises the only ones to suffer here: in December 2023, Broadcom announced a bonfire of VMware partner agreements, inevitably impacting vast numbers of managed service providers. It hardly helps that Broadcom’s reaction to the furore has sometimes felt blunt. The multinational didn’t respond to Tech Monitor’s request for comment. But answering a paediatric hospital’s pleas for financial leniency, the company’s reply was simple and to the point: “VMware is not for everybody.”

In a recent discussion with SDX Central, Krish Prasad, SVP & GM of Broadcom’s VCF division explores the latest VCF innovations and provides insights into what customers should prioritize next. Learn more: https://lnkd.in/eNtfmSiW #VMwareCloudFoundation #VCF #Broadcom #CloudComputing #EnterpriseInnovation #PrivateCloud #CloudInfrastructure #DigitalTransformation

Ntirety CEO, Emil Sayegh, recently shared his insights on Broadcom's takeover of VMware with Tech Monitor. The article, written by Andrea Valentino, explores the changes ahead and the long-term impacts of the upheaval. #VMware #Broadcom #ntirety #cloudcomputing

📢 VMware update: Minor changes made by Broadcom in response to pressure from the European Commission fail to address the key issues.   CISPE welcomes the European Commission's involvement in sending an RFI to #Broadcom asking questions about its license changes. We thank the Commission for this important intervention and also recognise the support from organisations like Cigref, representing European professional users, as we seek solutions and alternatives for long-standing #VMware customers.   Last week, #Broadcom's CEO and Chairman, Hock Tan, sought to reframe the brutal licensing changes imposed for #VMware users as pro-competition and pro-innovation, hailing a new subscription licensing approach.   This is blatant obfuscation. The issue is not the subscription licensing model, but the unjustified price hikes, product rebundling, altered billing basis, and unfair licensing terms that limit choice and lock in customers.   ⚖ Broadcom's actions reflect ongoing abusive #SoftwareLicensing practices seen from companies like Microsoft. Decisive action by the European Commission and other powerful regulators is essential to halt this tide of abuse that is damaging Europe’s shift to the cloud and digital growth.   📃 Read our full statement: https://lnkd.in/dUR44C87

If you're interested in the latest developments following Broadcom's acquisition of VMware, this article is a must-read. It covers the impact on pricing, customer responses, changes in business models, and market dynamics, while also exploring potential alternatives for affected customers. Whether you're a current VMware user or just curious, this comprehensive overview will provide valuable insights.

Broadcom Custom ASIC Opportunity Geared Toward Internal Cloud Service Provider Workloads. Broadcom secured next-gen custom ASIC design wins for 2 of 3 hyperscale customers, including TPUv7. Broadcom capable of <12-month accelerator development cadence, citing historical 18-month timeline per two Google TPU generations. Core networking tied to GPU/accelerator demand; however, mix deviates Q/Q due to indirect/OEM selling motion and custom ASIC lumpiness. Broadcom's durable custom ASIC leadership stems from breadth of semi IP cores, incumbency with major CSP platforms, and specialized knowledge/expertise developed over the past decade-plus. Marvell is likely the only credible competitor for large-scale CSP custom compute projects. #Broadcom #CSP #CustomASIC #ASIC #Cloud #CloudComputing #CloudServiceProvider #TPU

AT&T has decided enough is enough. They have filed a lawsuit over the tactics they claim are putting first responders and critical government services at risk. AT&T is claiming breach of contract because of the new support policy enacted by Broadcom after the VMware acquisition. The key point comes in an amendment in their support agreement that says that AT&T can renew their current support contracts for up to two more years provided they do so before the expiration of their current contract. They are exercising that option now but VMware by Broadcom is not honoring the renewal. AT&T stated they don't have an issue with the business model change, just that it affects them right now and is making them pay more. This and more on the #Rundown. Thank you to Ron Westfall of The Futurum Group for cohosting with Tom Hollingsworth. Top Stories: Juniper Networks Enhanced Data Center Networking with #AI Amazon Web Services (AWS) and Oracle Team Up Feds Force Focus on Fixing Flaws in BGP Broadcom Earnings Show Issues with Chips Airvine Debuts Concrete-Proof #Ethernet Broadcom Sued by AT&T Upcoming Events: AI Field Day 5 #AIFD5 - September 11-13 Edge Field Day 3 #EFD3 - September 18-19 NFDx Nokia - September 24 AI Data Infrastructure Field Day #AIDIFD1 - October 2-3

Brace yourselves, tech enthusiasts! A colossal clash is unfolding between two titans: AT&T and Broadcom. The battleground? The future of VMware's pricing. In a shocking turn of events, Broadcom, the semiconductor giant that recently acquired VMware, has allegedly proposed a mind-boggling 1,050% price hike for AT&T's VMware offerings. Yes, you read that right – a staggering 10.5 times increase! This bombshell revelation comes from legal filings by AT&T, accusing Broadcom of unlawfully denying them the renewal of support services they were entitled to under a pre-existing contract. The stakes are high, with AT&T's vast infrastructure of 75,000 virtual machines across 8,600 servers running on VMware hanging in the balance. As the drama unfolds, both parties are digging in their heels, each claiming their interpretation of the contract is valid. Broadcom argues that AT&T missed their opportunity to renew support, while AT&T maintains their right to the second of three one-year renewals. This clash of corporate titans raises critical questions about the future of software licensing and the potential implications for businesses relying on VMware's solutions. Will Broadcom's acquisition lead to a seismic shift in pricing strategies? How will this impact the broader tech ecosystem? The outcome of this legal battle could set a precedent that reverberates throughout the industry. #TechTitans #VirtualizationWars #SoftwarePricing

Whether your datacenter is focused on high-performance computing, AI, cloud services, or a mix of varied workloads, the Intel Xeon 6 processors deliver the balance of power and efficiency needed to stay competitive in a rapidly evolving technological landscape. #intel #DellTechnologies https://lnkd.in/gCaiA-6Y