Broadcom sends stop letters to VMware Permanent License Holder

Broadcom has always been ARS Technica has confirmed that the suspension letter will be sent to the owner of the permanent license of VMware and sent through an expired support contract.
Broadcom ended its VMware Perpetual license sale after acquiring VMware in November 2023. Users with a permanent license can still use the software they purchased, but they cannot renew the support service unless there is an existing contract that allows them to do so. The controversial move aims to drive VMware users to purchase subscriptions to VMware product bundles, with the associated costs increased by 300%, or in some cases more.
Some customers often choose to continue using unsupported VMware when researching alternatives such as VMware competitors or Devirtualization.
Over the past few weeks, some users who do not support VMware have reported receiving a stop letter from Broadcom informing them of their contract with VMware, and as a result, their rights to obtain support services have expired. This letter [PDF]reviewed by ARS Technica and signed by Michael Brown, managing director of Broadcom, tells users that they will stop using any maintenance releases/update, smaller versions, major versions/upgrade extensions, enhancements, supplements, patches, bug fixes or security patches, and zero-day security patches that are ultimately issued by Japan Security Patch to self-support contracts.
The letter told the user that any such updates “must immediately delete/delete the expiration date” and added: “Any such support for any such use in the past constitutes a material breach of VMware’s agreement and infringes on VMware’s intellectual property and has the potential to result in enhanced damages damages and attorneys and may result in claims.
CTO DEAN COLPITTS told ARS that customers of IT Group, a member of the Canadian Hosting Provider (MSP), have received the letter despite not receiving VMware updates since their support contract expired. He said a client received a letter six days after the support contract expired.
Similarly, online users have reported receiving stop letters, even though they have not released updates since losing VMware support. A user on the Spiceworks community forum reported that they received a letter even though they migrated from VMware and Proxmox.
Some users who reported Broadcom’s letters said they eventually involved the legitimate team. ARS also saw the online chaos, with some who thought the letter meant that Broadcom believed they had broken their consent with VMware. However, whether they continue to use (or do not use) VMware, Broadcom appears to send these letters to the company shortly after its support contract expires.
Broadcom did not respond to a request for comment.
Broadcom warns of potential audits
The stop letter also tells the recipient that they may be audited: “Not complying [post-expiration reporting] Requirements may result in a customer breach of the agreement[,] VMware may exercise its right to audit customers and any other available contractual or legal remedies. ”
In response, Corpitz told ARS:
“One thing that angered me is that Broadcom reserves the right to still conduct audits when they choose. But…it’s totally true anyway.
As Broadcom ended its permanent licensing and increased its pricing, many users and channel partners, especially small and medium-sized companies, had to reduce or end VMware’s business. Most of the IT Group’s member VMware client base does not support VMware now. Colpitts noted that MSP’s biggest concern is ensuring employees don’t accidentally apply patches to customers.
In recent months, Broadcom has tried to control the potential use of VMware products that it believes are doing nothing. For example, it had a freely resolved legal battle with AT&T and had conducted on the right to renew support services for Telecom and accused Siemens of pirated VMware software.
Broadcom’s changes to the way VMware is distributed has led various companies to abandon VMware and doubt Broadcom’s concern for customers. While Broadcom’s financial success since obtaining VMware shows that its business plans will remain unwavering, sending stop letters to VMware users could further damage its reputation with current and former customers.
This story originally appeared in ARS Technica.