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Dell tears up VMware sales agreement after Broadcom acquisition

Dell tears up VMware sales agreement after Broadcom acquisition

Dell has ripped up a commercial framework agreement - or go-to-market deal - to sell VMware software, news broke in the US last night.

The original agreement has been in force since November 2021, and the unilateral axing of the deal comes just weeks after Broadcom acquired VMware, which was once owned by Dell.

Broadcom recently decided to stop OEMs - like Dell – from reselling VMware product licenses, even though many customers prefer buying software bundled with their hardware.

Broadcom wants to fully control the software sales process itself through software subscriptions, to the detriment of OEMs, while also creating a reduced number of software partners.

It is not clear at this stage as to whether Dell will start to major on an alternative to VMware virtualisation software for its hardware, but it did provide a statement to The Register news site.

A Dell spokesperson said: “Broadcom is an important and valued partner for Dell Technologies. We will continue to evolve our relationship with Broadcom to deliver value to our business and our customers and partners."