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Is Broadcom’s disastrous new pricing creating an unfair monopoly that you should worry about?
Changes in the cloud world can affect your business. IBM recently made a big decision about VMware, and cloud companies in Europe are raising serious concerns about the company that owns VMware, Broadcom. Understanding these events is important for anyone who uses cloud services.
IBM Stops Selling VMware to New Customers
IBM will no longer offer its “VMware on IBM Cloud” services to new clients. This change became effective on October 31, 2025. This decision is not IBM’s choice alone. It is a direct result of new rules from Broadcom, which now owns VMware.
The new rules from Broadcom’s partner program prevent IBM from selling VMware licenses to any customer who was not already using a VMware service on IBM’s cloud before the deadline.
- For New Customers: If you are a new customer, you can no longer find or buy VMware services through the IBM Cloud.
- For Existing Customers: If you already use VMware on IBM Cloud, you can keep using and expanding your current setup. However, new restrictions will apply, and it is wise to review IBM’s official notice to understand how these limits might affect you.
European Cloud Providers Challenge Broadcom
A group of European cloud providers, known as CISPE, is taking action against Broadcom. They believe Broadcom’s business practices are unfair and hurt competition. This is not the first time CISPE has spoken out. They previously reported that Broadcom had increased prices for VMware products by 800% to 1500%, a massive jump for any business.
CISPE has now released a new report. It states that Broadcom is making the situation worse. The group points to several key problems.
- Broadcom has introduced one-sided program changes that disrupt the market.
- The company uses unfair software licensing rules that harm both cloud providers and their customers.
- These practices limit choices for customers and protect powerful companies from competition.
Because of this continued pressure, CISPE is now challenging the European Commission’s original approval of Broadcom’s purchase of VMware. They argue that authorities have not done enough to stop Broadcom’s behavior, which limits innovation and hurts the entire cloud ecosystem in Europe. For businesses, this could mean fewer choices and higher costs in the long run.