Dutch Government Takes Down Broadcom’s VMware Lock-In Scheme

A European government agency dragged Broadcom to court over its aggressive VMware license model and won. And not just a slap on the wrist. The Dutch Ministry of Infrastructure and Water Management (Rijkswaterstaat, or RWS) secured a legal ruling that could send shockwaves through VMware’s entire post-acquisition pricing strategy.

The Context: From Perpetual to “Pay Up or Get Out”

After Broadcom’s takeover of VMware, we all watched as perpetual licenses were pushed off a cliff. No more support, no exit plan — just a forced migration to Broadcom’s shiny new subscription model. For many public institutions (and frankly, a lot of us in the enterprise world), that meant sudden cost spikes and zero time to plan an alternative.

For RWS, the numbers were brutal:

💶 Old cost: €2.14 million/year
💸 New model: €3.97 million/year — an 85% increase

VMware’s response? Migrate or lose support. No transitional help, no updates, no patching. Just a contractual cliff edge.

The Verdict: A Legal Slam Dunk

RWS sued. The Dutch court didn’t just sympathize — it ruled decisively.

The outcome:

Broadcom must provide exit support (updates, bug/security patches, assistance) for up to two years.
If they don’t comply? €250,000 per day in penalties, up to a max of €25 million.

Let that sink in.

The court called out Broadcom’s “duty of care” — saying they had an obligation not to pull the rug out from under essential government infrastructure.

Why This Matters to All of Us

This isn’t just a Dutch story. It’s a precedent.

For those of us who were quietly swallowing Broadcom’s forced march to subscription hell, this ruling says something loud and clear:
👉 You might have legal ground to fight back if you were promised long-term use of perpetual licenses — and the vendor reneges.

Enterprise IT has long suffered from bait-and-switch tactics. Broadcom’s VMware strategy has made it worse. This ruling pushes back and opens the door for other organizations — public or private — to demand transparency, support, and time to migrate.

Angry Admin Takeaway

Broadcom’s VMware strategy has been burning goodwill faster than a misconfigured SRM failover during peak hours. This court ruling gives us all a little hope — that with the right push (and legal team), vendor overreach can be stopped.

So if your renewal meeting with Broadcom ends with a 3x price hike and a smirk, remember:
The Dutch said “Not today,.”
And they backed it up in court.

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