Broadcom's Regulatory Challenges Amidst VMware Cloud Partner Concerns

Thursday, 22 May 2025, 17:19

Broadcom faces growing regulatory demands from VMware cloud partners in Europe. Cloud service providers accuse Broadcom of adopting a business model deemed legally and ethically flawed, pushing for official action. The European Cloud Competition Observatory (ECCO) highlights these issues, urging scrutiny of unfair software licensing practices.
Arstechnica
Broadcom's Regulatory Challenges Amidst VMware Cloud Partner Concerns

Broadcom's Business Model Under Fire

Broadcom is unlikely to make any voluntary changes to its new commercial terms. VMware's business model under Broadcom is legally and ethically flawed, claims a group of cloud service provider (CSP) customers and partners in a report released today.

Insights from the European Cloud Competition Observatory

The report comes from the European Cloud Competition Observatory (ECCO), which describes itself as an independent monitoring body comprising members of the Cloud Infrastructure Services Providers in Europe (CISPE) trade association. ECCO's aim is to illuminate ongoing or new unfair software licensing practices from any software vendors in the cloud sector.

  • ECCO has previously scrutinized Broadcom and Microsoft.
  • CISPE members met with Broadcom regarding the changes to VMware's business model.
  • Current model focuses on subscriptions of bundled products.

Despite these discussions, no changes were observed, signaling ongoing tension between these major tech players.

What's Next for Broadcom and VMware?

The future actions of Broadcom in the face of these demands remain uncertain. Cloud partners will likely continue to push for regulatory scrutiny as they seek more favorable terms in a competitive market.


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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