Allstate accuses Broadcom of auditing it because it quit VMware
The allegation is a direct response to CA and VMware both suing the insurance giant for failing to comply with said audits.
Published on 14th July 2026
Allstate Insurance Company has accused Broadcom of haphazardly issuing audits against it because the insurance firm decided not to renew its contracts with VMware and CA Technologies.
The allegations were made in relation to a lawsuit that VMware filed against Allstate in December 2025, according to The Register. In the complaint, Broadcom alleges that Allstate failed to comply with license audits, which Broadcom claims its contract with Allstate requires.
In a June 12 filing, Allstate suggested that Broadcom issued the audits in response to Allstate deciding to end business with its companies. Allstate’s statement reads:
This case is about VMware’s decision to initiate a haphazard “audit” of Allstate, once it was aware that Allstate did not intend to renew its contracts with VMware or its sister company, CA.
The statement reveals that Allstate is one of thousands of companies that have migrated or plan to migrate partially or completely from VMware after Broadcom’s takeover. Other sizeable companies include T-Mobile, Tesco, and Western Union.
The Register reported that “the relationship between Allstate and Broadcom has not been good for quite some time, and that the insurer decided to move away from both VMware and CA at around the time Broadcom’s acquisition of VMware closed” but was unable to provide any comment from Allstate.
According to the filings, Allstate and VMware have been in business since 2008. In its complaint against Allstate, VMware claims that it issued a formal audit notice to Allstate in March 2025. Despite reportedly acknowledging receipt of the audit materials on May 7, 2025, and multiple communication attempts from VMware and audit partner Connor Consulting, Allstate “continued to stonewall and withheld the requested materials.” VMware claims.
The complaint reads:
On September 12, 2025, Allstate informed VMware’s consultant that it had “removed VMware from all devices,” and therefore Allstate was no longer able to “execute the Scripts provided by Broadcom as the scripts are dependent on having VMWare components running in the environment.”
Allstate reportedly followed up in October to tell VMware that “all VMware instances have been terminated and removed from Allstate’s VMware ELA environment” and that its audit obligations were fulfilled, per VMware’s complaint.
Allstate’s story differs. In the June filing, Allstate claimed that after it decided not to renew its VMware and CA contracts, Broadcom “simultaneously and unreasonably initiated four separate audits of Allstate’s use of its licensed CA and VMware software.”
“With respect to VMware, Allstate substantially and in good faith complied with the audit and reporting requirements set forth in its contracts with VMware, and Plaintiff’s claims to the contrary are unfounded,” the statement reads.
Broadcom has a separate case against Allstate under CA Technologies (PDF). In the lawsuit filed in May 2025, CA accuses Allstate of copyright infringement and breach of contract by selling Allstate’s Employer Voluntary Benefits business and the Symantec products that the business used to Oregon-based insurance company StanCorp Financial Group. CA alleges that Allstate initially “sent a letter to Symantec (a company no longer in existence)” about the decision, but “did not send a similar notice letter addressed to CA.”
In both cases, the parties have until May 17, 2027, to file dispositive motions seeking to resolve each case without a trial.
The cases demonstrate Broadcom’s litigious side and a willingness to battle disgruntled VMware customers. Allstate hasn’t said how reliant it was on VMware or what virtualisation tech it uses now. But it’s notable that the insurance firm has joined a growing list of known, enterprise-size firms that have decided to move away from VMware and dispute its owner’s business practices in court.
Another week, another headline
The number of desertions keep stacking up, after related stories involving Tesco's and T-Mobile's own battles with the virtualisation giant recently.
But do VMware have enough to still thrive amongst this exodus? Let us know your thoughts.
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