Key points
- Broadcom/VMware vs. Siemens: A legal battle over license compliance and support extensions, with VMware (via Broadcom) accusing Siemens of copyright infringement involving U.S. entities.
- Cost disputes across major firms: Companies like AT&T and United Healthcare face potential multi-million-dollar demands from Broadcom for VMware/CA Software renewals, sparking lawsuits.
- Dutch government wins court ruling: A Dutch court ordered Broadcom to provide discounted support for VMware products, highlighting risks for customers using perpetual licenses.
In a string of legal disputes linked to VMware’s licensing practices under Broadcom, several major companies and government agencies have challenged the tech giant’s post-acquisition policies. The case Siemens AG vs. Broadcom, now over 500 days in the works, centers on a contract renewal row.
The saga began in 2012 when VMware and Siemens signed a broad software licensing deal. After an amended agreement in September 2021, tensions flared in September 2024 when Siemens requested a one-year extension of support services for specific products. VMware demanded a list of licenses, but Siemens refused. Over the next few weeks, the two companies exchanged threats: VMware offered a 30-day extension and suggested an independent auditor, while Siemens threatened legal action.
By mid-September 2024, VMware sent Siemens a report noting discrepancies between the products Siemens wanted support for and the licenses in their records. Siemens responded with a purchase order for support renewal, but VMware pushed back, claiming Siemens had used unauthorized software deployments—including 23,000 in the U.S.—and demanding compensation. Siemens later retracted its list and provided a revised one closer to VMware’s records before filing a lawsuit in Delaware on March 21, 2025, accusing Broadcom of trying to seize control of their existing VMware software.
Broadcom’s response hinged on a “forum selection clause” in the original 2012 contract, which Siemens argued should move the case to German courts. On June 6, 2025, a federal judge in Delaware ruled the case could proceed there, rejecting Siemens’ motion to transfer it. Meanwhile, U.S. copyright law became a focal point: Broadcom argued Siemens violated laws by distributing infringing software to its U.S. subsidiaries, but Siemens disputed this, saying U.S. law does not automatically apply to global actions.
Other high-profile cases include AT&T’s lawsuit over Broadcom’s attempt to renegotiate existing VMware licenses, demanding “hundreds of millions” in new payments. This was quietly settled by December 2024, though details remain private. United Healthcare Services (UHCS) also clashed with Broadcom when it rejected revised terms for CA Software licenses. UHCS revealed this week that Broadcom had tried to bundled VMware renewals with CA Software payments, escalating the dispute to court.
Perhaps the most visible blow came from the Dutch government’s Ministry of Infrastructure and Water Management. For 15 years, it used perpetual licenses of VMware products and had spent millions. After refusing to pay €18.65 million for a new three-year support deal, the ministry negotiated with resellers and sought cheaper, long-term support. On June 27, 2025, a Dutch judge ruled in the ministry’s favor, mandating Broadcom to extend support for two years at €1.8 million annually—a 60% reduction from their initial demand. The order also penalizes Broadcom €250,000 per day if support requirements are not met, up to a maximum of €25 million.
These cases underscore a broader trend: Broadcom’s tough licensing strategies post-acquisition have left Windows Server and other enterprise IT clients scrambling to manage costs and compliance. VMware’s transition to subscription-based models, like those offered by Microsoft Azure, has also complicated matters for companies preferring perpetual licenses. The Dutch government’s win, in particular, sets a precedent for disputing aggressive subscription pricing, which Microsoft itself has criticized as a distraction from customer needs.
Meanwhile, experts warn that the vagueness of license agreements—especially clauses about legal jurisdiction—has fueled conflicts. The Siemens case, for instance, hinges on whether U.S. or German courts handle the dispute. Similar ambiguities are seen in contracts with AT&T and UHCS, both of which operate globally but face litigation in the U.S.
As the fallout from these battles continues, the enterprise software industry watches closely. Issues like support extensions, license audits, and pricing fairness are now intertwined with Microsoft’s own cloud strategies, as businesses weigh loyalty to legacy systems versus adopting newer platforms like Azure. With Broadcom restructuring VMware’s licensing model to include subscription-only terms, even longtime users like the Dutch government risk losing access to tools critical to their IT operations—tools often integrated with Windows Server environments.
The upcoming oral hearings in these cases, and the penalties imposed in the Dutch ruling, could force Broadcom to rethink its approach. For now, the key takeaway is clear: Post-acquisition disputes are reshaping how companies—and governments—manage software in the cloud era, with Microsoft and its ecosystem increasingly in the crosshairs of such conflicts.
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