AT&T Sues Broadcom For Breaching VMware Support Extension Contract

AT&T has filed a lawsuit against Broadcom, alleging that Broadcom is refusing to honor an extended support agreement for VMware software unless AT&T purchases additional subscriptions it doesn't need. The company warns the consequences could risk massive outages for AT&T's customer support operations and critical federal services, including the U.S. President's office. The Register reports: A complaint [PDF] filed last week in the Supreme Court of New York State explains that AT&T holds perpetual licenses for VMware software and paid for support services under a contract that ends on September 8. The complaint also alleges that AT&T has an option to extend that support deal for two years -- provided it activates the option before the end of the current deal. AT&T's filing claims it exercised that option, but that Broadcom 'is refusing to honor' the contract. Broadcom has apparently told AT&T it will continue to provide support if the comms giant 'agrees to purchase scores of subscription services and software.' AT&T counters that it 'does not want or need' those subscriptions, because they:

- Would impose significant additional contractual and technological obligations on AT
- Would require AT&T to invest potentially millions to develop its network to accommodate the new software;
- May violate certain rights of first refusal that AT&T has granted to third parties;
- Would cost AT&T tens of millions more than the price of the support services alone.

The complaint also suggests Broadcom's refusal to extend support creates enormous risk for US national security -- some of the ~8,600 servers that host AT&T's ~75,000 VMs 'are dedicated to various national security and public safety agencies within the federal government as well as the Office of the President.' Other VMs are relied upon by emergency responders, and still more 'deliver services to millions of AT&T customers worldwide' according to the suit. Without support from Broadcom, AT&T claims it fears 'widespread network outages that could cripple the operations of millions of AT&T customers worldwide' because it may not be able to fix VMware's software.

Read more of this story at Slashdot.