Broadcom and AT&T are currently in talks to resolve their VMware support licensing dispute without going to court. On October 11, the legal teams of both companies sent a letter to the New York State Supreme Court, requesting a postponement of the proceedings that were set to start on October 15. The letter noted that both parties have made significant progress in their settlement discussions.
They proposed moving the opening remarks to October 22. Broadcom also agreed to extend support for AT&T for an extra week if any scheduling issues come up. The dispute began in August when AT&T accused Broadcom of not honoring a support contract that included a two-year extension for VMware services, negotiated before Broadcom’s acquisition of VMware in 2023.
Instead of honoring this agreement, Broadcom suggested that AT&T switch to its new bundled software subscription model to keep receiving support, which requires a three-year commitment. Following the lawsuit, Broadcom temporarily extended support services until October 21.
Broadcom, after acquiring VMware, has streamlined its offerings from 168 products to just four subscription packages. These subscriptions allow customers to build private clouds, a move that has sparked backlash from customers and caught the attention of regulators worldwide, including the Japan Fair Trade Commission.
AT&T’s lawsuit doesn’t seek damages but requests a permanent injunction to compel Broadcom to uphold the original contract. The VMware software is critical for server virtualization in both cloud and on-premises setups, letting businesses manage computing resources more efficiently. AT&T claims that nearly 75,000 of its virtual machines use VMware, with 22,000 linked to public safety offices at the federal and local levels. Their customer support centers also rely on this software, handling nearly a million inquiries each day.
AT&T’s court filing emphasizes the risk to their operations without ongoing support, particularly for customers in government and intelligence roles. Broadcom has countered AT&T’s claims, stating it acted in good faith throughout the negotiations, but alleges that AT&T has turned down every proposal, even ones with favorable pricing. Broadcom’s memorandum asserts that an “End of Availability” clause allows VMware to retire products at any time with notice.
Tim McCarthy reports on cloud and data storage for TechTarget.