The ruling represents escalating authorized pushback towards Broadcom’s aggressive licensing technique since finishing its $69 billion VMware acquisition in late 2023. Telecom large AT&T has filed related litigation over assist contract adjustments, whereas EU antitrust regulators examine Broadcom’s practices following complaints from European enterprise teams.
“The Dutch verdict represents a proper rebuke of how enterprise software program monetization has decoupled from operational continuity,” mentioned Sanchit Vir Gogia, chief analyst and CEO at Greyhound Analysis. “Distributors that revoke assist for perpetual licenses with out affordable transition mechanisms threat making a contractual choke level.”
Broadcom’s transformation of VMware eradicated perpetual licensing gross sales and compelled customers into bundled subscription packages at dramatically greater prices. Prospects have reported VMware license cost increases of up to 500%. Beginning in 2025, Broadcom requires prospects to license a minimal 72 cores per order no matter precise wants, compounding pricing strain on smaller deployments.
Authorized consultants counsel the Dutch ruling might embolden related litigation elsewhere, notably in Europe the place enterprise safety legal guidelines are stronger than in america. The court docket’s “responsibility of care” framework might apply to different important companies suppliers utilizing VMware for medical programs, energy grids, or transportation networks.
The timing of the Dutch court docket ruling is critical as many massive VMware prospects face contract renewals all through 2025, doubtlessly armed with the Dutch precedent to demand continued assist throughout migrations.
“This ruling validates the rising concern amongst CIOs that vendor technique can not function in a vacuum,” Gogia mentioned. “Whether or not within the type of authorized injunctions, class motion fits, or regulatory probes, buyer-led resistance to coercive licensing ways is changing into structured, public, and repeatable.”
