Broadcom Issues Cease-and-Desist Letters to VMware License Holders

Since acquiring VMware in November 2023, Broadcom has discontinued the sale of VMware perpetual licenses and pushed customers toward costly subscription models, with prices increasing by 300% or more. Despite allowing perpetual license holders to continue using their software, Broadcom restricts support renewals to pre-existing contracts and has sent cease-and-desist letters demanding that users uninstall any updates, patches, or enhancements installed after their support contract expired, except for zero-day security patches. These letters warn of potential breach of contract claims, intellectual property infringement, legal action, and audits for non-compliance. Many customers, frustrated by the aggressive enforcement and rising costs, have chosen to continue using VMware unsupported while exploring alternatives or abandoning virtualization altogether. This hardline approach has damaged Broadcom's reputation with loyal VMware customers and accelerated migration away from the platform. Broadcom's strategy reflects a push to consolidate revenue through subscriptions but risks long-term customer trust and retention.