Broadcom has been sending cease-and-desist letters to house owners of VMware perpetual licenses with expired help contracts, Ars Technica has confirmed.
Following its November 2023 acquisition of VMware, Broadcom ended VMware perpetual license gross sales. Customers with perpetual licenses can nonetheless use the software program they purchased, however they’re unable to resume help companies except that they had a pre-existing contract enabling them to take action. The controversial transfer goals to push VMware customers to purchase subscriptions to VMware product bundles, with related prices which have elevated by 300 % or, in some circumstances, extra.
Some clients have opted to proceed utilizing VMware unsupported, usually as they analysis alternate options, similar to VMware rivals or devirtualization.
Over the previous weeks, some customers operating VMware unsupported have reported receiving cease-and-desist letters from Broadcom informing them that their contract with VMware and, thus, their proper to obtain help companies, has expired. The letter [PDF], reviewed by Ars Technica and signed by Broadcom managing director Michael Brown, tells customers that they’re to cease utilizing any upkeep releases/updates, minor releases, main releases/upgrades extensions, enhancements, patches, bug fixes, or safety patches, save for zero-day safety patches, issued since their help contract ended.
The letter tells customers that the implementation of any such updates “previous the Expiration Date have to be instantly eliminated/deinstalled,” including: “Any such use of Help previous the Expiration Date constitutes a cloth breach of the Settlement with VMware and an infringement of VMware’s mental property rights, doubtlessly leading to claims for enhanced damages and attorneys’ charges.”
Some clients of Members IT Group, a managed companies supplier (MSP) in Canada, have acquired this letter, regardless of not receiving VMware updates since their help contracts expired, CTO Dean Colpitts informed Ars. One buyer, he mentioned, acquired a letter six days after their help contract expired.
Equally, customers on-line have reported receiving cease-and-desist letters although they have not issued updates since dropping VMware help. One person on Spiceworks’ neighborhood discussion board reported receiving such a letter although they migrated off of VMware and to Proxmox.
Some customers who reported receiving a letter from Broadcom mentioned they ended up getting authorized groups concerned. Ars has additionally seen confusion on-line, with some individuals considering that the letter means Broadcom perceives that they’ve damaged their settlement with VMware. Nonetheless, plainly Broadcom is sending these letters to corporations quickly after their help contracts have expired, no matter whether or not they proceed to make use of (or not use) VMware.
Broadcom did not reply to a request for remark.
Broadcom Warns of Potential Audits
The cease-and-desist letters additionally inform recipients that they may very well be topic to auditing: “Failure to adjust to [post-expiration reporting] necessities could end in a breach of the Settlement by Buyer[,] and VMware could train its proper to audit Buyer in addition to some other accessible contractual or authorized treatment.”
In response, Colpitts informed Ars:
“The one factor that does type of piss me off is the truth that Broadcom retains the precise to nonetheless carry out audits each time they select. However … that is utter BS anyhow. If a buyer needed to cover stuff, it may simply be carried out (disclaimer: I’ve by no means carried out this, however because it’s all self-reporting in clear textual content with no safety checksums or something to detect tampering, it could be straightforward to do).”
Since Broadcom ended VMware’s perpetual licenses and elevated pricing, quite a few customers and channel companions, particularly small- to medium-size corporations, have needed to cut back or finish enterprise with VMware. Most of Members IT Group’s VMware buyer base is now operating VMware unsupported. The MSP’s greatest concern there’s guaranteeing that workers do not unintentionally apply patches to clients, Colpitts famous.
In current months, Broadcom has sought to rein in potential use of VMware merchandise that it considers unwarranted. For instance, it engaged in a since-resolved authorized battle with AT&T over the telecom’s proper to resume help companies and has accused Siemens of pirating VMware software program.
Broadcom’s adjustments to how VMware is distributed have resulted in numerous corporations ditching VMware and doubting Broadcom’s care for patrons. Whereas Broadcom’s monetary success since buying VMware means that its marketing strategy will stay steadfast, sending cease-and-desist letters to VMware customers dangers additional harming its repute with present and former clients.
This story initially appeared on Ars Technica.
