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“Extreme” Broadcom-proposed price hike would up VMware costs 1,050%, AT&T says

NewsTech

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The logo of American cloud computing and virtualization technology company VMware is seen at the Mobile World Congress (MWC), the telecom industry's biggest annual gathering, in Barcelona on March 2, 2023.

Enlarge (credit: Getty)

Broadcom quoted AT&T a 1,050 percent price hike for VMware offerings, AT&T has claimed in legal documents.

AT&T sued Broadcom on August 29, accusing Broadcom of unlawfully denying it the second of three one-year renewals for support services that AT&T thinks it's entitled to. AT&T cites a contract signed before Broadcom bought VMware. The telecommunications firm says it has 75,000 virtual machines (VMs) across approximately 8,600 servers running on VMware. Broadcom, which has stopped selling VMware perpetual licenses, has said that AT&T missed its opportunity to renew support and that the contract between VMware and AT&T has an "End of Availability" provision allowing VMware to retire products and services.

Legal filings from September 27 and spotted by The Register today show an email [PDF] that AT&T EVP and GM of wireline transformation and global supply chain Susan A. Johnson apparently sent to Broadcom CEO Hock Tan pointing to "an impasse" over VMware.

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