AT&T plans to ditch VMware, Broadcom claims in legal battle

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# AT&T Plans to Ditch VMware, Broadcom Claims in Legal Battle

In a surprising twist to the ongoing legal dispute between AT&T and Broadcom, court filings reveal that the telecom giant allegedly plans to stop using VMware software. This development adds a new layer to the conflict over support services for VMware products.

According to Broadcom’s legal response, AT&T has admitted in writing that it intends to “migrate away” from VMware software, claiming the move would have “a very quick payback and strong internal rate of return.” This revelation comes as part of Broadcom’s defense against AT&T’s lawsuit seeking continued support for perpetual VMware licenses.

The dispute began when AT&T claimed Broadcom refused to honor a pre-acquisition agreement with VMware for extended support services. Broadcom counters that AT&T knew about VMware’s transition to a subscription-based model and chose not to purchase the support services it now demands.

Broadcom’s filing paints a less-than-flattering picture of AT&T’s IT infrastructure, alleging the telecom company is running outdated VMware software versions, some already unsupported due to AT&T’s failure to upgrade. The chip maker also questions AT&T’s claim that VMware is mission-critical, given the carrier’s apparent reluctance to keep the software current.

This high-profile case highlights the broader industry trend of moving away from VMware following Broadcom’s acquisition. Several major companies, including Geico and John Deere, have already announced plans to adopt alternative platforms.

As this legal battle unfolds, it serves as a cautionary tale for enterprises navigating the shifting landscape of enterprise software and support services in the wake of major acquisitions.

Sources include: The Register (https://www.theregister.com/2024/09/23/att_vmware_broadcom/)

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