The ruling represents escalating authorized pushback towards Broadcom’s aggressive licensing technique since finishing its $69 billion VMware acquisition in late 2023. Telecom big AT&T has filed related litigation over help contract modifications, 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,” stated Sanchit Vir Gogia, chief analyst and CEO at Greyhound Analysis. “Distributors that revoke help 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 increased prices. Clients have reported VMware license value will increase of as much as 500%. Beginning in 2025, Broadcom requires clients to license a minimal 72 cores per order no matter precise wants, compounding pricing strain on smaller deployments.
Authorized consultants recommend the Dutch ruling might embolden related litigation elsewhere, notably in Europe the place enterprise safety legal guidelines are stronger than in the USA. The courtroom’s “obligation 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 courtroom ruling is important as many massive VMware clients face contract renewals all through 2025, doubtlessly armed with the Dutch precedent to demand continued help throughout migrations.
“This ruling validates the rising concern amongst CIOs that vendor technique can not function in a vacuum,” Gogia stated. “Whether or not within the type of authorized injunctions, class motion fits, or regulatory probes, buyer-led resistance to coercive licensing techniques is changing into structured, public, and repeatable.”