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Broadcom Secures 10-Year VMware Private Cloud Agreement With NTT DOCOMO

BullishMedium impact
AVGO$334.59 1.78%9432¥176.00 0.51%

Broadcom Inc. (NASDAQ:AVGO) has secured a 10-year comprehensive agreement with Japanese telecommunications provider NTT DOCOMO, INC. (TSE:9432) to modernize and maintain its private cloud infrastructure. The deal marks Broadcom's first decade-long software and support contract in Japan centered on VMware Cloud Foundation, extending a technical collaboration between the two companies that began in 2019.

Under the agreement, NTT DOCOMO will utilize VMware Cloud Foundation to manage servers, storage, and networking on a unified system. The infrastructure upgrade aims to improve service uptime, automate resource management during network spikes, and defend against cyber threats and AI-driven security risks. The shared platform will also support virtual machines, containers, and artificial intelligence workloads to speed up feature releases.

Investors should monitor how effectively Broadcom executes long-term enterprise software agreements following its VMware acquisition. Moving forward, both companies plan to align technology roadmaps and build automated, AI-driven operations while preparing infrastructure for future developments such as 6G networks.

Key points

  • Broadcom Inc. signed a 10-year agreement with NTT DOCOMO to support and expand its private cloud platform.
  • The deal represents Broadcom Japan's first 10-year comprehensive agreement covering VMware Cloud Foundation licenses and support.
  • Broadcom and NTT DOCOMO have collaborated on private cloud operations using VMware technology since 2019.
  • Shares of Broadcom Inc. rose 1.78% to $334.60 following the news, while parent NTT Inc. gained 0.29% to 175.6 JPY.

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Questions and answers

What is the agreement between Broadcom and NTT DOCOMO?

Broadcom signed a 10-year comprehensive agreement with NTT DOCOMO to manage and advance the telecommunications carrier's private cloud platform using VMware Cloud Foundation technology.

What VMware products are included in the 10-year contract?

The contract covers licenses, technical assistance, and maintenance support for VMware Cloud Foundation products, including the VMware vSphere Kubernetes Service for running virtual machines and containerized workloads.

How long have Broadcom and NTT DOCOMO worked together?

Broadcom, through VMware, has worked closely with NTT DOCOMO since 2019 to construct and operate its private cloud infrastructure.