AT&T Claims VMware By Broadcom Offered It a 1,050% Price Increase

The Register's Simon Sharwood reports: AT&T has claimed that Broadcom made it an offer to increase prices by 1,050 percent, and may be influencing other vendors to make a migration harder. The claim of the colossal price hike came in an email [PDF] filed in evidence by AT&T in its case alleging Broadcom hasn't honored a contract that would allow the carrier to acquire an additional two years of support services for its VMware estate. The email was penned by AT&T executive vice president and general manager Susan A Johnson and appears to be addressed to Broadcom CEO Hock Tan.

'After a 10 plus year strategic relationship with Broadcom... I am sad to report that we appear to be at an impasse on our VMware deal,' Johnson wrote on August 19. 'The latest offer that we have received would put us at an average of $REDACTED per year for a 5 year deal, where we currently pay $REDACTED per year to support previously purchased perpetual licenses with a right to renew support through September, 2026. This proposed annual increase of +1,050 percent in one year is extreme and certainly not how we expect strategic partners to engage in doing business with AT&T.'

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