Is VMware by Broadcom a Troll? Is That a Bad Thing?
VMware is a trusted, historic vendor with real products and real value. But since Broadcom’s acquisition, its tactics increasingly resemble a software licensing troll’s playbook:
- Ending perpetual licenses: Customers were forced into subscription-only models, regardless of their existing investments.
- Huge price hikes and bundling: Many report 100%–300% price jumps and forced bundles for features they don’t need.
- Legal and audit pressure: Reports of aggressive contract enforcement, surprise audits, and “take-it-or-leave-it” renewals are on the rise. Even AT&T has filed lawsuits over allegedly unlawful tactics.
- Industry reaction: Trade groups such as Cloud Infrastructure Services Providers in Europe have filed formal complaints describing Broadcom’s behavior as monopolistic lock-in. Gartner predicts that by 2026, half of all enterprises will explore alternatives to VMware.
So, is that a bad thing? Well, profit harvesting is exactly what public companies are designed to do—maximize returns for shareholders. However, there’s a distinction between fair business practices and tactics that alienate customers for short-term gain. Broadcom’s recent moves raise real questions about whether it’s protecting relationships—or just extracting as much as it can while it can.
Broadcom’s Playbook
Broadcom has a well-known reputation for acquiring major enterprise software and semiconductor businesses, then applying a playbook of:
- Aggressive cost-cutting and restructuring
- Slashing R&D and customer support budgets
- Focusing on “top-tier” enterprise customers while sidelining smaller and mid-sized accounts
Many industry observers describe this as “financial engineering”—prioritizing short-term profit over long-term customer trust.
Does Broadcom care about keeping you as a long-term customer? Its actions suggest that Broadcom focuses on its largest accounts—with less concern for smaller and mid-sized customers. According to Gartner, “By 2026, 50% of enterprises will initiate proofs of concept for alternative distributed hybrid infrastructure (DHI) products to replace their VMware-based deployments. …” (Gartner, “2024 Magic Quadrant for Distributed Hybrid Infrastructure”).
But again, is that a bad thing? Although recent actions indeed resemble the behavior of a software licensing troll, these moves can also be seen as shrewd business decisions. After all, it’s the responsibility of every customer to fully understand and manage the contracts they sign, make efficient use of their investments, and get the most value from vendor relationships.
It’s a fundamental principle of free enterprise that companies must maximize profit for their shareholders, within the boundaries of fair contracts, ethical practices, and the law.
The Takeaway
The most important lesson here is that customers should use every available resource to maximize the value of the software they license. The best way to achieve this is to work with trusted consultants and advisors who can help design systems that are efficient and fully compliant with existing contracts. When that happens, everyone wins—and nothing builds strong partnerships more than everyone winning together.