T-Mobile has filed a lawsuit against Broadcom in New York, demanding that Broadcom honor ongoing support commitments for VMware perpetual licenses amid a major migration away from VMware technology.
- T-Mobile operates tens of thousands of virtual machines on VMware across 303,140 CPU cores.
- Broadcom stopped support for VMware perpetual licenses after acquisition, pushing subscriptions.
- T-Mobile secured an injunction for support through August 2026 but seeks further court relief.
What happened
In August 2025, T-Mobile filed a lawsuit in New York's Supreme Court against Broadcom, seeking to enforce its right to continued support for VMware perpetual licenses purchased in 2023. The mobile operator claims that Broadcom, which acquired VMware, ceased selling perpetual licenses and declined to extend support beyond the initially purchased period. When T-Mobile attempted to renew support for a third year, Broadcom refused, ending availability of perpetual license support and prioritizing more expensive subscription bundles.
The lawsuit details that T-Mobile operates tens of thousands of virtual machines hosted on VMware software across approximately 303,140 CPU cores. The company is in the process of migrating off VMware but faces considerable technical challenges involving the migration of over 1,000 applications. To maintain network stability and security during migration, T-Mobile argued for continued support, even offering $20 million for two years’ worth of updates and services.
Why it matters
This dispute highlights the growing tension between enterprise software buyers and large conglomerates that shift licensing models toward subscriptions. Broadcom’s strategy to phase out perpetual licenses in favor of subscription bundles imposes financial and operational burdens on customers like T-Mobile, who rely on long-term stability for critical infrastructure.
The case also underscores the complexity and cost of migrating from entrenched virtualization platforms. The substantial scale of T-Mobile’s VMware deployment amplifies the challenge, requiring careful management to avoid service disruptions and security risks. The lawsuit signals to other large customers the potential legal and technical hurdles involved in transitions enforced or accelerated by vendor policy changes.
What to watch next
The court’s ruling on whether Broadcom must honor perpetual license support renewal could set a precedent for other enterprises facing similar licensing transitions. T-Mobile is seeking a declaration that it can renew support services, beyond the current injunction valid through August 2026. The litigation outcome may influence how Broadcom navigates support obligations and subscription strategies going forward.
Additionally, monitoring settlements or rulings in related Broadcom conflicts, such as with AT&T and Tesco, will provide insight into how the conglomerate balances customer demands with its preferred licensing models. Industry responses to this case could spur further legal challenges or prompt broader dialogue on enterprise software license and support terms.