> ## Content Index
> Fetch the complete content index at: https://itsfoss.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# Broadcom is Bullying Enterprises with VMware Audits
- URL: https://itsfoss.com/news/broadcom-bullying-enterprises/
- Published: 2025-06-27T14:06:04.000Z
- Updated: 2025-06-27T14:06:03.000Z
- Description: Perpetual license holders are facing surprise audits.
- Author: Sourav Rudra
- Tags: Enterprise, News, #Import 2025-11-08 21:15

Since completing its \~$61 billion [acquisition of VMware](https://www.broadcom.com/company/news/financial-releases/60271?ref=itsfoss.com), Broadcom has wasted no time reshaping the virtualization services provider to fit its aggressive enterprise software strategy. Among the first and most controversial moves was the [discontinuation of perpetual licenses](https://itsfoss.com/vmware-broadcom-subscription/), forcing customers into pricey bundled subscriptions that make no sense for many organizations.

Not long after, they axed the [VMware Cloud Services Provider program](https://itsfoss.com/broadcom-vmware-continues/), doing away with a crucial channel for third-party service providers and cloud partners.

And now, it seems Broadcom has employed a new tactic to make life difficult for perpetual license holders.

## Broadcom is Strong-Arming Enterprises

![a notice that has the following subject: notice of formal review and veritication - use of vmware software and services](https://itsfoss.com/content/images/2025/06/broadcom-audit-letter.jpg)

**Source: Ars Technica*

Shared with [Ars Technica](https://arstechnica.com/information-technology/2025/06/vmware-perpetual-license-holder-receives-audit-letter-from-broadcom/?ref=itsfoss.com) is an [audit letter](https://cdn.arstechnica.net/wp-content/uploads/2025/06/Broadcomauditletter.pdf?ref=itsfoss.com) sent to a VMware user in the Netherlands who holds a perpetual license. This notifies the company that it has been selected for a formal review of its VMware software usage and licensing compliance. 

The letter, dated June 20, states that the audit will be conducted by [Connor Consulting](https://www.connor-consulting.com/?ref=itsfoss.com) and may involve fieldwork, remote testing, and meetings with their accounting, licensing, and IT departments.

The employee who spoke with Ars Technica regarding this also stated that:

> Because we are focusing on saving costs and are on a pretty tight financial budget, this will likely have impact on the salary negotiations or even layoffs of employees. Currently, we have some very stressed IT managers \[and\] legal department \[employees\] …

They further added that they aren’t sure if their employer exceeded its license limits, but if they did, the financial consequences could be huge.

So, ***is Broadcom now in the business of bankrupting others?*** Maybe, because that’s precisely how their licensing enforcement is starting to look.

There have also been reports of Broadcom sending [cease-and-desist letters](https://cdn.arstechnica.net/wp-content/uploads/2025/05/2025.05.07-12.26.01-SNAGIT-0038.pdf?ref=itsfoss.com) threatening audits, with some companies being targeted even though they had not used any VMware updates since their support contracts ended.

I must say, it looks bad, and things appear to be getting worse. While there have been growing calls to investigate **Broadcom's aggressive and possibly anti-competitive licensing practices**, not much has been done so far. For now, companies are left to deal with the consequences on their own.

**Suggested Read** 📖

[Free as in Fraud? A $130M Aerospace Company Caught Exploiting Open Source TrialAn unnamed $130M company has been exploiting Xen Orchestra’s free trial for over a decade.![](https://itsfoss.com/content/images/icon/android-chrome-192x192-145.png)It's FOSS NewsSourav Rudra![](https://itsfoss.com/content/images/thumbnail/organization-abuses-open-source-trial.png)](https://itsfoss.com/free-as-in-fraud/)