Broadcom has taken a bold and aggressive step: issuing cease-and-desist letters to VMware users who are running the software without a current subscription. According to Ars Technica, these letters target long-time VMware customers who previously purchased perpetual licenses—agreements that once promised indefinite use of the software.
But since Broadcom’s acquisition of VMware, the game has changed. Perpetual licenses are no longer being honored. Customers are being told they must now subscribe or shut it down. In Broadcom’s words: “There is no such thing as a perpetual license anymore.”
What This Means for Your Business
- If you’re running VMware under a perpetual license without a Broadcom subscription, you’re now officially on notice.
- This move may open the door to software audits, legal threats, and forced subscription conversions.
- Organizations relying on these legacy licenses—especially in cost-sensitive sectors—are now facing unplanned expenses or disruptions to mission-critical systems.
A Broader Industry Trend
Broadcom’s tactics mirror a growing trend in enterprise software: subscription-only licensing and post-acquisition monetization. Whether it’s Oracle, IBM, or now Broadcom, vendors are turning to aggressive compliance enforcement to boost revenue.
What You Can Do Now
- Review your VMware licensing immediately. Know what you’re running and what license terms apply.
- Don’t engage with Broadcom (or any vendor) without legal or expert guidance. The wrong response could trigger a costly audit or legal action.
- Consider alternatives. Open-source and subscription-flexible platforms like Proxmox, KVM, and even cloud-native solutions are gaining traction.
Bottom Line
If you’re feeling blindsided by this shift, you’re not alone. Now is the time to partner with independent software licensing advisors who can help you assess risk, negotiate smarter, and protect your organization from exploitative vendor practices.
If your company is navigating Broadcom’s new VMware licensing model, now is the time to be proactive.
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