Broadcom Licensing Models FAQ – 20
Read our complete guide to Broadcom Subscription vs Perpetual Licensing: How to Choose the Right Model..
Broadcom’s enterprise software licensing has become increasingly complex and ever-changing, particularly following the acquisitions of CA, Symantec, and VMware. Customers face a shift from traditional perpetual licenses to subscription and SaaS models, raising questions about cost, renewals, and flexibility.
This FAQ distills 20 common Broadcom licensing questions into quick, strategic answers – a handy reference for CIOs, procurement teams, and IT asset managers negotiating with Broadcom.
Broadcom License Models FAQ
Can perpetual and subscription licenses co-exist in a portfolio?
Yes. Broadcom allows mixed environments, but contracts rarely align cleanly. Negotiate renewal protections to avoid forced migration.
What happens if you migrate from perpetual to subscription under an ELA?
Essentially, it’s treated as a new subscription purchase. Broadcom won’t convert or credit your perpetual licenses under an ELA unless specifically negotiated (e.g., a credit or transition period).
Does Broadcom honor perpetual licenses indefinitely?
Yes. Perpetual usage rights don’t expire – Broadcom cannot revoke them. However, without maintenance, you’ll lack updates/support, and Broadcom often nudges customers toward subscription over time.
What happens if maintenance isn’t renewed?
You retain usage rights but lose access to upgrades and support. Renewal may require costly reinstatement fees to resume maintenance later.
How high can subscription or maintenance uplifts go?
Very high. Broadcom has imposed steep increases—double-digit yearly hikes are common, and some customers have faced jumps of 50% or more. Always negotiate an annual cap on maintenance or subscription renewal rates.
Does Broadcom give subscription discounts for multi-year commitments?
Yes, but typically modest. Push for upfront multi-year pricing guarantees with capped uplifts.
Are perpetual maintenance caps negotiable?
Yes, but not by default. Broadcom rarely offers maintenance fee caps, but they are negotiable for big customers. Always push to include an annual maintenance increase cap in your deal.
How to secure renewal price protection?
Negotiate it into the contract. Push for a fixed multi-year renewal price or a cap on annual increases. Without contractual price protection, Broadcom can significantly hike renewal costs.
Can prior perpetual spend be credited toward subscription?
No (not usually). Broadcom typically does not credit previous perpetual license spend when you transition to a subscription. At best, large customers might negotiate a one-time discount as a concession.
Are dual-use rights available during migration?
No standard dual-use rights. Broadcom expects a clean cutover. If you require overlap (using both old and new systems concurrently), you must explicitly negotiate a temporary dual-use provision in the contract.
Is feature parity guaranteed when switching models?
Not necessarily. Broadcom’s subscription versions often repackage features. Don’t assume full parity—verify the new edition’s features and obtain written assurances on any critical capabilities before making the switch. Read about Broadcom’s different license models, Broadcom’s SaaS, On-Prem, and Consumption Licensing Models (2023–2025).
How does Broadcom price SaaS (per-user, per-instance, usage)?
Varies by product line. Many Broadcom SaaS offerings are priced per user or device (especially for security software). Others use per-instance or capacity metrics. True pay-per-use consumption pricing is not typical.
Does Broadcom offer consumption-based models with caps?
Not as a standard option. Broadcom favors fixed subscriptions. Any consumption-based arrangement would be an exception and require negotiating usage limits (cost caps) into the contract.
Can I reduce subscription counts mid-term (true-down)?
No. Broadcom’s subscriptions lock your quantity for the full term with no mid-term reductions (“true-down”). You must pay for the committed amount until renewal, so plan upfront.
Can perpetual licenses be transferred in M&A?
Yes, usually. Standard Broadcom terms permit license assignment in mergers, provided notification is given. Check your contract’s assignment clause and follow any notice requirements to transfer licenses legally.
What are the exit options if subscription costs escalate?
Few. If Broadcom’s subscription costs surge, the only real “exit” is to walk away at renewal (losing access). No perpetual fallback exists, so negotiate protective caps and line up alternatives as leverage.
VMware: Can you still buy perpetual VMware licenses?
No. Broadcom has stopped selling new perpetual VMware licenses after the acquisition. VMware products are now only available via subscription (term or SaaS) models.
VMware: Are new VMware features subscription-only?
Yes. Broadcom is making most new VMware features exclusive to subscription versions. Perpetual license customers will not receive the latest capabilities unless they transition to a subscription model.
Symantec/CA: How did Broadcom handle legacy perpetual contracts?
Broadcom honored existing perpetual entitlements but ended new perpetual sales. Maintenance costs skyrocketed (2×–4× in some cases), and customers were pushed into multi-year subscription bundles covering broader product suites.
Top clauses to request in subscription deals?
Key clauses: cap on annual price increases, ability to reduce or swap licenses, guaranteed feature parity (no lost functionality), and clearly defined exit or transition options.
How to handle Broadcom audit/compliance terms with subscriptions?
Be explicit. Define usage metrics clearly and limit audit scope in the contract. Insist that audits require notice and that any overuse is remedied at standard rates (no penalties).
Actionable Advice
- Use this FAQ as a quick negotiation checklist when planning Broadcom deals.
- Always redline Broadcom’s default contract terms and add your protections.
- Push for renewal caps, feature parity guarantees, and flexibility rights in every agreement.
Read about our Broadcom Licensing Assessment Service.
