AT&T Claims Broadcom's Proposed 1,050% Price Hike on VMware Services

Tuesday, 1 October 2024, 18:22

AT&T has accused Broadcom of proposing a staggering 1,050% price increase for VMware services. This legal confrontation arose after AT&T alleged unlawful denial of its contract renewals. The outcome may significantly impact AT&T's operational costs and vendor relationships.
Arstechnica
AT&T Claims Broadcom's Proposed 1,050% Price Hike on VMware Services

AT&T's Legal Challenge Against Broadcom

Broadcom is reported to have quoted AT&T a shocking 1,050 percent price increase for its VMware offerings, according to legal documents. AT&T claims that Broadcom is preventing some vendors from selling products, severely disrupting its operations.

Details of the Dispute

On August 29, AT&T initiated a lawsuit against Broadcom, alleging that the semiconductor giant unlawfully denied its second one-year renewal of support services. AT&T contends this entitlement originates from a contract created before Broadcom acquired VMware.

  • AT&T operates 75,000 virtual machines across 8,600 servers using VMware.
  • Broadcom has halted sales of VMware perpetual licenses.
  • AT&T's legal filings indicated an email sent by Susan A. Johnson, an executive VP, highlighting an impasse in negotiations.

Implications for the Tech Industry

This legal battle may shape the future landscape for both AT&T and Broadcom. The potential increase in operational costs could press AT&T towards reevaluating its vendor relationships.
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This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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