# Broadcom (AVGO) has created a predictable, high-margin franchise that is difficult for customers to exit, despite higher pricing.

*business · news · 2026-04-20 · Forbes*

## Key points

- Broadcom eliminated perpetual VMware licenses, requiring all customers to adopt mandatory subscriptions post-acquisition.
- Product bundling now forces clients to buy the full VMware Cloud Foundation suite, not individual tools.
- FY2025 software revenue hit $27 billion, 42% of total sales, with 93% gross margins after cost cuts.
- 2026–2027 contract expirations will reveal if clients tolerate higher pricing or begin switching to alternatives.

**Companies:** Broadcom, VMware, Marvell

[Read the full story on Forbes](https://www.forbes.com/sites/greatspeculations/2026/04/20/how-software-powers-broadcoms--2-trillion-ai-boom/)

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