AT&T Sues Broadcom For Breaching VMware Support Extension Contract

AT&T has filed a lawsuit against Broadcom, claiming that Broadcom is refusing to honor an extended support agreement for VMware software unless AT&T purchases additional subscriptions it doesn't need. AT&T holds perpetual licenses for VMware software and paid for support services under a contract that ends on September 8. The company has an option to extend that support deal for two years, which it claims to have activated, but Broadcom is not honoring the contract. Broadcom is demanding that AT&T agree to purchase scores of subscription services and software to continue receiving support, which AT&T does not want or need. This could lead to significant additional contractual and technological obligations, millions in investment, and potential violations of rights of first refusal. The situation poses a risk to US national security, as some servers hosting VMware VMs are dedicated to national security and public safety agencies, including the Office of the President. Without support from Broadcom, AT&T fears widespread network outages that could affect millions of customers worldwide. AT&T's lawsuit aims to force Broadcom to honor the extended support agreement without the additional subscriptions.