TECH - Broadcom's VMware Overhaul Sparks Regulatory Scrutiny - What's Going On? | Benzinga
Broadcom Inc’s (NASDAQ:AVGO) acquisition of VMware, a leading cloud-computing and virtualization firm, has sparked concern among Europe-based Cloud Infrastructure Service Providers of Europe (CISPE).
Following the acquisition, CISPE urges regulators to address the pricing and business model adjustments Broadcom has implemented within VMware’s partnership program.
These changes, set to take effect this month, could compel companies that license and resell VMware software to either absorb increased costs or pass them on to customers, the Wall Street Journal reports.
The adjustments include shifting from perpetual licenses to a subscription model and a new billing calculation method, which Broadcom asserts will offer long-term customer value.
CISPE contends that Broadcom’s VMware, as a dominant force in cloud virtualization, should be considered a “gatekeeper” under the European Union’s Digital Markets Act, criticizing the company for imposing “take it or leave it” terms on its customers.
The group’s secretary general, Francisco Mingorance, is appealing to European and national regulators ...