Broadcom has filed a memorandum in response to AT&T’s lawsuit alleging that the telco giant plans to stop using VMware software and wants the chipmaker to continue providing support services beyond September 8. In its filing, Broadcom claimed that AT&T had perpetual licenses for VMware products but was tardy about making the move.
AT&T argued that it had a contract with pre-acquisition VMware that would allow it to extend support services covering those products for two years beyond September 8. However, Broadcom offered AT&T subscriptions to VMware’s new bundles of products and services instead.
Broadcom claimed in its memorandum that AT&T’s filing represented an attack “intended to generate press and distract the Court from a much simpler story.” The company argued that it had negotiated in good faith with AT&T for months to enter into a new agreement that would fully address AT&T’s needs, but the telco giant had rejected every proposal.
The memorandum also alleged that AT&T could have spent the last several months or even years migrating away from VMware software, which it has admitted it intends to do. Broadcom claimed that AT&T had admitted in writing to VMware that it can “migrate away” from VMware software and doing so would have a “very quick payback and strong IRR.”
Broadcom’s CEO, Hock Tan, predicted that hyperscalers will build million-accelerator clusters, making it difficult for VMware to compete. Research suggests more than half of VMware customers are looking to move.
The dispute highlights the challenges faced by companies trying to navigate the changing landscape of cloud computing and IT support services. As companies like AT&T and others look to migrate away from VMware, they may face resistance from vendors who want to maintain their customer base.
Source: https://www.theregister.com/2024/09/23/att_vmware_quit_claim_broadcom/