SAM & The Impact of Broadcom’s VMware Acquisition

In the constantly evolving terrain of IT asset management, ITAM leads and SAM managers face enormous challenges. The task is made even more daunting in light of recent seismic shifts within the industry—a prime example being Broadcom’s acquisition of VMware. This move symbolizes not just a change in ownership but also heralds a paradigm shift in how corporate customers and end-users interact with crucial IT resources.

Software Asset Management (SAM), a crucial facet of ITAM, aims to meticulously oversee software assets throughout their lifecycle. However, the idealized benefits of SAM, including substantial cost reductions in software licensing, often need to be realized. One key factor contributing to this disconnect is what I’ve identified as “The 3-headed monster of SAM”.

The 3-Headed Monster of SAM

The 3-Headed Monster concept delineates the conflicting interests inherent among the three pivotal groups involved in SAM:

1. Software Publishers: Eager to safeguard their revenue, publishers can impose stringent licensing conditions and audits.
2. Corporate End-Users: Focused purely on the functionality and accessibility of software, often oblivious to the licensing constraints.
3. Corporate Customers (You): Tasked with minimizing expenses while maximizing software utility and navigating the confines of compliance.

Broadcom, Inc.'s Venture into VMware Territory

Broadcom’s handling of VMware exemplifies the intricate dynamics at play, vividly portraying the Monster’s influence. By shifting VMware’s licensing model and offering Workstation Pro and Fusion Pro for free to individual users for their personal use, Broadcom sets the stage for potential compliance pitfalls. Corporate end-users, driven by necessity or convenience, might unintentionally breach corporate licensing agreements by downloading these “‘free” versions. This echoes a longstanding issue with software like Novel WinZip—a headache for SAM and a drain on IT budgets due to audits.

Compliance Risks & The Fine Print You Probably Miss

If you can find the Terms of Use statement on the Workstation Pro Fusion site, for example, you may be surprised by some of the language: (“Broadcom”) authorizes you to view and download the materials at this Web site and/or mobile application (“Site”) only for your personal, non-commercial use, provided that you retain all copyright and other proprietary notices contained in the original materials on any copies of the materials … any use of these materials on any other Web site, mobile application, or networked computer environment for any purpose is prohibited.”* (Emphasis mine)

Will your corporate end-users be tempted to download the “free” version to help themselves out in a pinch? Of course, they will! And Broadcom is counting on it, as they mentioned in a corporate blog post back in November 2023:

?“…everyday users who want a virtual lab on their Mac, Windows or Linux computer can do so for free simply by registering and downloading the bits from the new download portal located at support.broadcom.com.”**?

Have SAM professionals seen this before? Of course, we have!?

Novel WinZip uses this exact same license model – and has been a SAM headache (and budget-draining audit problem) for decades. If you recall, WinZip is offered for download freely from the product’s website. But few users ever look closely at the end-user license agreement (EULA), which states (in tiny letters): “You shall not, directly or indirectly: … (d) use the Software for timesharing purposes or otherwise for the benefit of any other person or entity…”***

If you think one little download won’t cause any harm, then read the section titled “Entity Audits.”

How To Tame The 3-Headed Monster

As IT leaders, the journey ahead is fraught with challenges, but we can navigate this landscape deftly by embracing a holistic, pragmatic approach to ITAM. The time to act is now—to secure your organization against the uncertainties of tomorrow while fostering a culture of compliance, efficiency, and innovation.

Pragmatic ITAM provides unique strategies for managing and mitigating risks, allowing the Software Asset Management team to stay ahead in the fast-evolving ITAM landscape. It also ensures that you’re prepared to tackle today’s immediately apparent challenges, like those introduced by Broadcom’s acquisition strategies, and poised to address the enduring complexities of software asset management.

Now’s the time to transcend the adversarial scenarios fostered by The 3-Headed Monster?and turn potential conflicts into collaborative success. Contact me for a full explanation of the Pragmatic ITAM Method and discover how it can benefit your organization.

Take a look at the Pragmatic ITAM Method at work: A Single Mouse-Click Almost Clips The Wings Of An American Aircraft Manufacturer

References:

• IT leaders chafe as VMware costs skyrocket under Broadcom
• Broadcom, Inc. End User Agreement*
• VMware Fusion Pro: Now Available Free for Personal Use**
• Corel EULA (covers WinZip)***
• Broadcom, Inc. Terms of Use