Core Viewpoint - The current licensing model of VMware is reportedly in violation of European competition regulations, raising concerns about Broadcom's business practices and their impact on cloud service providers in Europe [4][5]. Group 1: Licensing Issues - Broadcom has transitioned many VMware customers to a new licensing framework, which has resulted in significant financial burdens and operational disadvantages for clients [4][5]. - The European Cloud Computing Competition Observatory (ECCO) indicates that VMware's licensing practices may harm both customers and the broader European cloud ecosystem, suggesting that shareholders should question the legality of this model [5]. Group 2: Partner Program Changes - VMware has raised prices after eliminating perpetual licenses and monthly pay-as-you-go pricing, which has been a major concern for its cloud partners and customers [5]. - The ECCO report highlights that Broadcom's recent modifications to its partner program force cloud service providers to choose between acting as service providers or resellers, further diminishing their competitive capabilities [5]. Group 3: Recommendations for Change - CISPE and ECCO have called for Broadcom to implement significant changes to restore fair licensing for cloud service providers, including a six-month notice period for any changes in contract terms or pricing structures [6]. - Smaller cloud service providers should have easier access to higher partnership levels, and there should be more transparent pricing models that reflect actual usage [6].