Critics of Broadcom dispute its changes to cloud licensing

Critics of Broadcom dispute its changes to cloud licensing
Critics of Broadcom dispute its changes to cloud licensing

Broadcom declined the American chipmaker’s changes to its cloud licensing policy, arguing that they did not sufficiently address their worries about alleged price hikes and much more.

Broadcom rejected The American chipmaker’s modifications to its cloud licensing policies were met with resistance on Monday from some who felt that they did not adequately address their concerns around purported price increases, unjust software licensing terms, and product coupling.

A trade association and certain EU corporate customers had complained; therefore, Broadcom CEO Hock Tan last week announced a number of revisions to the licensing terms of the recently purchased cloud computing provider VMware in a blog post.

These included adjustments that allowed users to shift workloads from their own data centers to cloud providers and vice versa, as well as significant price reductions for VMware’s cloud platform.

The French group of business users Cigref, the Austrian cloud service provider Anexia, and CISPE member Amazon (AMZN.O.) opened a new tab and stated that the problem was not with Broadcom’s subscription license model.

“What threatens the economic viability of many cloud services used by customers in Europe are the massive and unjustifiable hikes in prices, the re-bundling of products, the altered basis of billing, and the imposition of unfair software licensing terms that restrict choice and lock-in customers and partners,” they stated in a joint statement.

According to Broadcom, it was giving partners and customers greater options.

“Our simplified offering at a significantly reduced price responds to customer feedback and is focused on facilitating seamless workload management,” the business stated in a statement.

The organizations called on EU antitrust authorities to launch an inquiry into the matter, noting that they have already solicited feedback from competitors and clients.

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