Broadcom’s at it again. A quiet but critical change to VMware’s licensing terms means customers must now submit compliance reports every 180 days or risk losing access to key software functions. This new clause, buried in updated documentation, has serious implications for IT, procurement, and SAM teams alike. Here's what it means, why it matters, and how to stay ahead of it.
The latest in a now long line of bombshells by Broadcom, they have quietly updated the Specific Program Documentation (SPD) to include a new Mandatory Compliance Reporting clause for their flagship products, including VMware Cloud Foundation (VCF) and VMware vSphere Foundation (VVF). So what do the new terms say and how could it impact you?
The Changes
The Mandate:
Frequency of Reporting:
Customers must provide Broadcom with this compliance report every 180 days, and it is said that the software itself can transmit this back to the vendor, or the customer can upload this to an as-yet-specified location.
Failure to Report:
Broadcom states that “Customers that fail to transmit or upload a timely, unaltered Compliance Report” will incur the following:
- 180 days overdue: The customer will receive warnings within the software.
- 270 days overdue: Features and functionalities of the management plane of the software will be degraded and/or blocked.
Furthermore, Broadcom asserts that the customer assumes any and all risks associated with the loss of functionality and patch access from the non-submission of compliance reports.
What You Should Look Out For & Key Actions to Take Now
Review Product Documentation
If you already have a contract with VMware by Broadcom for their new subscription products, you should scrutinise your terms. Typically, the version of the product terms that were current when you signed a contract will be the governing version.
However, many agreements will include clauses referencing documents like SPDs, and you may have agreed to be bound by future updates, so it’s imperative to understand whether these changes affect you.
Establish a Reporting Cycle
If these changes do affect you, document a 180-day reporting cycle for each of the affected products, and assign a clear ownership of this responsibility to someone in your IT or SAM team.
Understand if your VMware software is automatically transmitting reports or if a manual upload is required; ensure that the process is tested and regularly reviewed. Finally, keep a record of all reports generated and submitted, as well as any proof of submission you can obtain.
How Livingstone Can Help
Navigating these shifting requirements can be a significant challenge. Livingstone’s experts provide the clarity and expertise you need. We can:
- Assess Your Exposure: Quickly determine if and how these new Broadcom mandates affect your business, pinpointing all implicated software in your estate.
- Proactively Assess Compliance: If you’d like to gain peace of mind now, our consultants can deliver a comprehensive assessment of your current license position, identifying any gaps before Broadcom does.
- Build Resilient Compliance Processes: Our specialists will partner with you to design and implement effective and sustainable processes, giving you the confidence that this new 180-day reporting requirement is being completed correctly.
Get our one pager on how Livingstone can support you with VMware.
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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.
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