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Broadcom raised VMware prices by 10x or more, European cloud providers say.

The European Cloud Competition Observatory rated Broadcom "critical" in its latest report, CIO reported.

ERP LEADERS news desk · · First reported by CIO · Edition no. 10

ECCO brings together members of the cloud providers' association CISPE and European customer organisations.

CISPE members reported licence price increases of 10x or more compared with VMware pricing before Broadcom's 2023 acquisition.

In January Broadcom ended its main reseller programme for VMware cloud service provider partners. ECCO said the decision cut much of Europe's cloud sector off from a product with no immediate alternative.

Providers must now pre-commit to core counts rather than pay for overage. CISPE also confirmed reports of a potential "degradation mechanism": miss the compliance report due every 180 days and the environment can be degraded or blocked.

Moving off VMware, where it is possible at all, is a multi-year project costing millions of euros, ECCO said.

The same report put SAP at amber over data access limits for agentic AI and new capacity-based pricing for partners. Microsoft stayed green. CIO's article carried no response from Broadcom or SAP.

What did your last VMware renewal quote look like against the one before?

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Our file on Broadcom

  1. 16 Sept

    Broadcom fixed one critical VMware flaw seven weeks before ransomware arrived.

  2. 10 Sept

    VMware pulled the toolkit rivals used to move customers off it. Without notice.

All 3 Broadcom stories

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