AT&T has taken legal action against Broadcom, alleging that the silicon-and-software shop is refusing to honor a contract extension for VMware support services. The telecom giant claims it paid for perpetual licenses and support under a deal that ends on September 8, with an option to extend the agreement for two years provided it activates the option before the end of the current deal.
However, Broadcom is reportedly demanding that AT&T purchase additional software and subscription services, which would impose significant new contractual and technological obligations on the company. AT&T argues that it does not need or want these subscriptions, as they would require substantial investments in its network infrastructure, violate existing rights, and cost tens of millions more than the support services alone.
The dispute has significant implications for national security, with some of the affected servers hosting VMs dedicated to government agencies, including the President’s office. Without continued support from Broadcom, AT&T fears widespread outages that could cripple operations for millions of customers worldwide.
In a complaint filed in New York State Supreme Court, AT&T accuses Broadcom of attempting to bully it into paying a “king’s ransom” for unwanted software and services. The company is seeking to preserve continuity in its services and protect the interests of its customers.
Source: https://www.theregister.com/2024/09/05/att_sues_broadcom_vmware_support/