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.
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?
Sources
Our file on Broadcom
- 5 Nov
Broadcom's VMware cut thousands of resellers and pushed pricier bundles. Now it sells cheaper small-server software through distributors.
- 4 Nov
Broadcom cannot see which cloud firms back an EU case against its VMware deal. A court kept their names secret.
- 27 Oct
Claude maker Anthropic filed to go public with an $81 billion half-year loss. The filing shows $72 billion was not cash.
- 27 Oct
Tesco wants to move its stores off VMware, a job ad shows. It is suing VMware to keep support for its licences.
- 20 Oct
Broadcom agreed a 10-year VMware deal with NTT DOCOMO. It disclosed no price.
Every story here is open to read. The ERP LEADERS brief goes one step further.
The day in enterprise software, in one email: the stories that matter, the failures with their figures, one case taken apart. Read a sample or sign up for the brief.
Welcome back. · Issue 01
