Business Tactics: Broadcom Imposing VMware Audits, perceived as Harassment towards Enterprises

In a move that has raised eyebrows, Broadcom has completed a $61 billion acquisition of VMware. This acquisition, however, has been accompanied by a series of licensing audits that have left some companies in a state of uncertainty.

VMware customers in the Netherlands, particularly those with perpetual licenses, have received audit letters from Broadcom. These letters are intended to verify license compliance and usage. The audits, typically conducted by VMware's internal audit team or authorized third-party auditors, aim to ensure that companies are adhering to their licensing agreements.

However, there are reports that some companies not using any VMware updates have also been targeted by Broadcom. This has led to concerns among these companies about whether they have exceeded their license limits with Broadcom.

Furthermore, Broadcom has been sending cease-and-desist letters threatening audits to companies even after their VMware support contracts have ended. This aggressive approach has sparked growing calls to investigate Broadcom's licensing practices, with some suggesting they may be anti-competitive.

The audits, if they materialise, could involve fieldwork, remote testing, and meetings with accounting, licensing, and IT departments. It has been reported that Connor Consulting will conduct the audits.

A VMware user in the Netherlands who holds a perpetual license received an audit letter from Broadcom. An employee at the audited company spoke with Ars Technica about the letter, expressing concerns about the potential financial consequences for exceeding Broadcom's license limits.

In addition to the audits, Broadcom has discontinued perpetual licenses for VMware services and axed the VMware Cloud Services Provider program. These moves have added to the confusion and concerns among businesses.

Despite the growing concerns, there has been little action taken so far to investigate Broadcom's licensing practices. Companies are left to deal with the consequences of Broadcom's licensing enforcement on their own.

As the situation unfolds, it is essential for businesses to stay informed and seek legal advice to ensure they are complying with their licensing agreements and avoiding any potential financial penalties.