AT&T alleges that Broadcom offered them a 1,050 percent price increase for VMware support services and may be pressuring other vendors to make a migration difficult. The carrier claims Broadcom hasn't honored a contract allowing for additional support years for its VMware estate.
AT&T has claimed that Broadcom made it an offer to increase prices by 1,050 percent, and may be influencing other vendors to make a migration harder.alleging Broadcom hasn't honored a contract that would allow the carrier to acquire an additional two years of support services for its VMware estate.
"After a 10 plus year strategic relationship with Broadcom … I am sad to report that we appear to be at an impasse on our VMware deal," Johnson wrote on August 19."The latest offer that we have received would put us at an average of $REDACTED per year for a 5 year deal, where we currently pay $REDACTED per year to support previously purchased perpetual licenses with a right to renew support through September, 2026.
Johnson's letter of August 19 states"the cost to migrate away from VMware has a very quick payback and strong IRR , especially given the high licensing costs proposed. As a result, we are planning to prioritize investment to migrate off of VMware." AT&T has investigated doing so"since at least December 2023," and Mansfield rates that effort as requiring"a significant investment in engineering work to replace the VMware software, which will be costly and time-consuming."
AT&T Broadcom Vmware Price Increase Migration
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