Programming

AT&T Accuses Broadcom for Breaching VMware Support Contract Extension

The Digital Artisan

Sep 5, 2024 — 1 min read

AT&T Takes Legal Action Against Broadcom

AT&T, the American telecommunications giant, is taking legal action against Broadcom, accusing them of breaching a support extension contract related to VMware software. In the recent filings with the Supreme Court of New York State, AT&T claims to have paid for the perpetual licenses for VMware software and its support services. AT&T alleges that despite having an option to extend the support deal, Broadcom refused to honour the contract.

Broadcom's Conditional Support Offer

Broadcom, according to AT&T, is ready to continue providing the support only if AT&T agrees to purchase scores of subscription services and software. AT&T, in retort, stated it does not want or need these subscriptions. The main concerns for AT&T include an imposition of additional contractual and technological obligations, requirement to invest millions to accommodate the new software, potential violation of certain rights and a significant cost increment.

Alleged Threats to National Security

The complaint further expresses that Broadcom's refusal to extend the support deal risks nation's security. Some of the servers that host AT&T's VMs support the Office of the President, various national security and public safety agencies, and numerous essential services. Moreover, AT&T claims that without Broadcom's support, there could be potential network outages, disrupting services for millions of AT&T's customers.

Broadcom's Response

In response to the allegations, Broadcom denied the claims and expressed confidence in their legal stance. They explained their focus on transitioning to a subscription model, offering customers choice and flexibility, and providing solutions to their complex technology challenges.

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