European cloud operators: Broadcom's behavior is offensive
Broadcom's attempt at appeasement backfires - now the CISPE has published a harsh response. The accusations are serious.
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The response from European cloud providers to Broadcom's attempts at appeasement is devastating: By portraying its brutal license changes as pro-competition and pro-innovation, the group is trying to disguise the main problem in this dispute. This is CISPE's (Cloud Infrastructure Services Providers in Europe) response to a blog post by CEO Hock Tan, which was intended to better explain VMware's reorganization following the takeover.
In its response, CISPE emphasizes that subscription licenses are not the problem for its members - many are already using them. However, the massive and unjustifiable price increases would threaten the economic survival of many local cloud services. The same applies to the changed software packages (VMware products are now only available in the two variants VCF and VVF), the changed basis for the fees and the unfair license conditions, which would no longer give customers and partners any choice.
Broadcom is promoting the changes as a true, seamless private cloud experience that can compete with the public cloud. However, the CISPE says that these are anti-cloud licenses. Real cloud licenses are flexible and scalable, and you only pay for what you use. For VMware, however, you now have to commit to a provider in advance and pay for capacities that you may never use - for three years in advance.
Insulting and almost blackmail
The final two points show how badly Broadcom's explanations are received by some customers: The promise now made to fix critical gaps in valid licenses is insulting - and borders on blackmailing customers into switching to the new licenses. After all, the presentations that they know better what customers really want are just proof that the company is ignoring criticism and acting against the genuine interests of users and partners.
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And the CISPE also wants to provide proof of this: While Broadcom insists that, yes, VMware prices have been lowered, local cloud operators would have to adjust to six, ten or even twelve times higher fees. Here, the industry association once again refers in particular to the new license packages, the new prices based on cores and the discontinued products. Right from the start, users criticized the fact that with VCF and VVF they now have to pay for many VMware products that they do not need and have not previously purchased.
CISPE welcomes the EU antitrust authority's review of Broadcom's takeover of VMware. However, the industry association fears that even the concessions described as "very minimal" are only intended to appease the competition authorities - even if this was sold as a response to the needs of customers. So far, none of the CISPE member companies nor any of their customers have been in contact with Broadcom to discuss the new conditions.
The full response can be found on the CISPE website. Cigref, a French digital association, also participated.
(fo)