A trade group representing smaller cloud providers is requesting the European Commission to intervene and prevent Broadcom from ending the VMware Cloud Service Provider program. They claim the move harms businesses and restricts customer choice, citing price increases and unfair practices since Broadcom's acquisition of VMware.
A lobbying trade body for smaller cloud providers is asking the European Commission to impose interim measures blocking Broadcom from terminating the VMware Cloud Service Provider program, calling the decision a death sentence for some tech suppliers and an illegal squeeze on customer choice.
revealed in January, Broadcom shuttered the scheme, a move sources claimed affects hundreds of CSPs across Europe and curtails options for enterprises buying VMware software and services.The Cloud Infrastructure Service Provider in Europe trade group, representing nearly 50 tech suppliers, filed the complaint today with the EC Directorates-General, accusing Broadcom of bully-boy tactics, and calling for authorities to halt what it terms as “ongoing abuse.” Francisco Mingorance, CISPE secretary general, said of the complaint: “Businesses – both cloud providers and their customers – are being irreparably damaged by Broadcom’s unfair actions, which we believe are illegal. “After imposing outrageous and unjustified price hikes immediately following the acquisition of VMware, Broadcom is now applying the ‘coup de grâce’. We need urgent intervention to force them to change. The only way to stop bullies is to stand up to them.” CISPE claims that, since Broadcom completed its $69 billion takeover of VMware in October 2023, prices have risen tenfold, payment is demanded upfront, products areThe VMware Cloud Service Provider program officially closed in January and all transactions must be complete by March 31. After that date, only a select group of suppliers will be able to sell VMware subscriptions - either standalone or as part of a broader service. Across Europe, we’re told this equates to hundreds of businesses losing their authorization. For some, the loss of VCSP status effectively destroys their market. Those whose operations were built around VMware must now hand customers to another authorized supplier or begin the costly migration to an alternative platform.VMware must support crucial Dutch govt agency as it migrates off the platform, judge rules "Broadcom strongly disagrees with the allegations by CISPE, an organisation funded by hyperscalers, which misrepresent the realities of the market," a Broadcom spokesperson told."We continue to be committed to investing significantly in our European VMware Cloud Service Provider partners helping them offer alternatives to the hyperscalers and meet the evolving needs of European businesses and organisations." A spokesperson for the European Commission, told us:"We have received a complaint alleging that Broadcom's licensing of VMware products to cloud service providers infringes EU antitrust rules.In the UK, around nine cloud service providers remain in VMware’s plans, among them Redcentric, ANS, Vodafone, Softcat, Caranet and Node 4. The cull is global: in the US, only 19 providers are said to remain from a pool of thousands. “This isn't partner management, it's market control,” one CSP told us in January. “A forced consolidation that sidelines long-standing European partners in favor of a much narrower and more limiting ecosystem. Broadcom is deliberately shrinking the choice for customers who will end up paying the price through higher costs, less data sovereignty, compliance concerns, and ultimately reduced choice."Supermicro co-founder arrested, charged over $2.5B Nvidia GPU sales to China28Meta’s latest AI improves its terrible content moderation, just a little
Broadcom Vmware Cloud Computing European Commission Competition
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Virgin Media will pay households £250 to switch broadband providersFor a limited time, Virgin Media is offering new customers up to £250 bill credit when they switch
Read more »
Virgin Media paying households £250 to switch broadband providersFor a limited time, Virgin Media is offering new customers up to £250 bill credit when they switch
Read more »
Virgin Media Offers Up to £250 Credit to New Customers Switching Broadband ProvidersVirgin Media is offering new customers up to £250 credit to cover early exit fees when switching from other broadband providers like Sky, BT, and Vodafone. The promotion is available on select broadband and TV and broadband packages and ends April 1st. Customers can choose from various packages, including options for different household sizes and entertainment needs.
Read more »
Hanging egg chair promising 'cloud-like comfort' now under £100'Absolutely amazing, so comfy, a real pleasure to sit in at the end of the day and just relax, a must buy'
Read more »
Hanging egg chair promising 'cloud-like comfort' now under £100'Absolutely amazing, so comfy, a real pleasure to sit in at the end of the day and just relax, a must buy'
Read more »
'Death sentence': EU cloud lobby takes Broadcom to Brussels over VMware partner purge: CISPE files antitrust complaint, demands interim measures to stop what it calls chip giant's 'ongoing abuse'
Read more »