Broadcom is Auditing VMware Customers

If you’re still running VMware under a legacy perpetual license and haven’t made the leap to Broadcom’s pricey new bundles, brace yourself. Broadcom has started issuing formal audit notices.

After months of warnings and cease-and-desist letters, Broadcom is now actively auditing organizations that declined to move to its new subscription model. If that includes your business, it’s time to act fast.

What’s Happening?

Broadcom, which acquired VMware in late 2023, has sent out audit letters to former perpetual license holders, informing them that their use of VMware software is being reviewed. Ars Technica reports that Broadcom has instructed companies to reply within a mere three business days.

What prompted these audits? The companies are continuing to use VMware software without migrating to Broadcom's new bundled subscriptions, nor do they have an active support contract.

In an example cited by Ars Technica, a Dutch company was hit with an audit notice despite only using VMware Cloud Foundation and vSphere and applying just one critical security patch since their support ended. Their IT and legal teams are now under pressure, with fears of serious financial repercussions and possible job cuts.

How We Got Here: The VMware-Broadcom Timeline

• November 2023: Broadcom completes its $69 billion acquisition of VMware.
• Late 2023: Broadcom discontinues all perpetual VMware licenses and begins promoting new subscription-only bundles.
• February 2024: Broadcom removes most standalone VMware SKUs and introduces pre-packaged bundles like VMware Cloud Foundation (VCF), drastically reducing customer flexibility.
• 2024–2025: Customers report cost hikes of 300–1000% under the new model.
• June 2025: Broadcom officially begins auditing customers who have not adopted the new subscriptions.

What Are These New VMware Bundles?

Broadcom has replaced VMware’s flexible, à la carte licensing with bundled subscriptions. These include:

• VMware Cloud Foundation (VCF): Includes vSphere, vSAN, NSX, and Tanzu.
• VMware vSphere Foundation (VVF): Bundled with vSAN and Tanzu Kubernetes Grid.

Here’s the catch: whether you use all these features or not, you still pay for the full bundle. There’s no longer an option to just buy what you need. That’s why many organizations have been hit with steep cost increases and are reluctant to switch.

What’s the Risk?

If you’ve chosen to stick with a legacy perpetual license and don’t have an active support agreement, you may now be in Broadcom’s sights. Even if you're not applying new features, using patches or updates (except for critical zero-day fixes) could trigger non-compliance claims.

Even worse, some organizations have reported receiving audit letters without any prior cease-and-desist notice, indicating that Broadcom is not waiting to establish a case. They are initiating audits immediately.

What Should You Do?

If you’re a VMware customer still on a legacy license, here are your next steps:

1. Get a handle on your estate
   Take stock of what VMware software you’re running, how it’s licensed, and when support ended.
   
   
2. Build an Effective Licence Position (ELP)
   An ELP will give you a defensible snapshot of your usage vs entitlements, crucial if Broadcom comes knocking.
   
   
3. Stop applying non-critical updates
   Avoid using any VMware updates released after your support expired until you confirm your compliance.
   
   
4. Evaluate your options
   You may decide to migrate to a Broadcom bundle, seek alternative platforms, or maintain legacy use within strict compliance boundaries.
   
   
5. Get expert advice
   Broadcom’s licensing tactics are complex and fast-changing. A misstep could cost you.

How Livingstone Can Help

Livingstone is already supporting organizations navigating this new VMware landscape. Here’s what we offer:

• Independent audit readiness
  We have no affiliation with Broadcom. Our goal is to protect your business and minimize risk.
  
  
• Clear ELPs
  Know exactly where you stand before an audit lands in your inbox.
  
  
• Audit defence
  If you’ve received a letter, we can guide you through the process, reducing both financial exposure and stress.
  
  
• Strategic licence planning
  Whether you're staying, switching, or renegotiating, we help you make the right move based on facts, not fear.

Don’t wait for Broadcom to make the first move.

Talk to our VMware licensing experts and take control of your risk exposure today. Discover how Livingstone can support you with VMware. Want help now? Contact us

About the author

Managing Consultant at Livingstone Technologies, Robert Cannings is an expert in Software Asset Management. With sharp attention to detail on the changing landscape in SAM, he is always on the ball when it comes to understanding how best to be prepared to deal with software audits, as well as understanding the complexities involved with software licensing changes.

Connect with Robert →