VMware’s Mandatory Compliance Reporting: What You Need to Know

Broadcom’s acquisition of VMware has led to significant changes in licensing terms and conditions, notably affecting compliance reporting obligations. A crucial update that has slipped under the radar for many users is the Mandatory Compliance Reporting requirement embedded in VMware Cloud Foundation (VCF) licensing documentation.

Understanding Mandatory Compliance Reporting

Under Broadcom’s VMware licensing, customers must submit compliance reports every 180 days. These reports, generated automatically by the VMware software, must be transmitted or uploaded by customers in line with the provided documentation. The purpose of these reports is to verify software usage against licensed entitlements.

Risks of Non-Compliance

Failing to comply with these mandatory reporting obligations can have severe operational consequences:

• After 180 Days of Non-Compliance: Customers will begin receiving software warnings indicating that compliance reports are overdue.
• After 270 Days of Non-Compliance: Critical software management functionalities will become degraded or entirely inaccessible, significantly disrupting operations.

Moreover, VMware explicitly states that customers assume all risks associated with non-compliance, including the potential loss of software functionality and access to important patches and updates.

Why This Matters

This stringent approach by Broadcom underscores a broader shift in software licensing management, pushing customers toward heightened transparency and regular reporting. Ignoring these requirements doesn’t merely risk inconvenience—it jeopardizes core operational functionality and security.

Proactive Steps for VMware Users

To navigate these new requirements effectively:

• Review Your Licensing Documentation: Familiarize yourself thoroughly with the terms you’ve agreed to.
• Automate Compliance: Ensure you have processes in place to regularly transmit compliance reports.
• Consider Expert Assistance: Services such as SoftwareOne’s VMware Advisory Services provide independent audits mirroring official Broadcom assessments, helping you maintain compliance and optimize costs.

As compliance becomes increasingly integral to software management, proactive software asset management (SAM) strategies are essential. Keep abreast of changes, regularly verify your compliance position, and optimize your licensing strategy to maintain operational stability and innovation capabilities.

Stay informed, stay compliant, and protect your organization’s software investment.