AT&T Accuses Broadcom of Unlawfully Denying VMware Support

Tuesday, 1 October 2024, 18:22

AT&T alleges Broadcom's shocking 1,050% price hike on VMware offerings is a tactic to prevent vendors from selling products. The significant increase threatens AT&T's operations across thousands of virtual machines. This legal battle highlights the critical importance of vendor relationships in the tech industry.
Arstechnica
AT&T Accuses Broadcom of Unlawfully Denying VMware Support

AT&T's Legal Battle Over VMware Costs

In a bold move, AT&T has filed a lawsuit against Broadcom, accusing them of imposing a staggering 1,050% price hike on their VMware offerings. AT&T claims this increase is an attempt by Broadcom to cut them off from necessary vendor support. Documents reveal that AT&T operates around 75,000 virtual machines across 8,600 servers that rely on VMware technology.

The Allegations

  • AT&T claims Broadcom has unlawfully denied its second renewal for VMware support.
  • Broadcom argues that AT&T’s missed renewal opportunity precludes continued support.
  • The lawsuit cites a contract in place prior to Broadcom's acquisition of VMware.

Furthermore, AT&T EVP Susan A. Johnson highlighted the challenges in communication with Broadcom's CEO, Hock Tan, indicating a major conflict over VMware services.


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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