DOCOMO Commits to VMware for Another Decade

NTT DOCOMO has signed a 10-year agreement with Broadcom to continue operating its private cloud on VMware Cloud Foundation, according to a Broadcom announcement dated October 19, 2026. The agreement marks the first deal of its kind for Broadcom in Japan.

The contract comes amid continued debate over Broadcom’s VMware licensing and support policies. In August 2024, AT&T sued Broadcom over changes to VMware support arrangements, arguing that its existing contract allowed it to renew support for two additional years. AT&T alleged that Broadcom instead required customers to enter new subscription packages with three-year commitments.

During a court hearing in October 2024, AT&T’s lawyers said the company intended to move away from VMware because of licensing and cost changes. The two companies subsequently reported a settlement in principle in December, without disclosing the terms.

DOCOMO’s decision illustrates a different approach: extending its relationship with VMware through a long-term commitment rather than pursuing an immediate migration.

A Comprehensive VMware Software Commitment

DOCOMO’s agreement covers more than VMware Cloud Foundation. The package also includes VMware’s load-balancing capabilities, vDefend security and Tanzu application platform.

Broadcom will provide dedicated account managers and VCF Forte Support, which includes its strictest service targets. The scope of the arrangement positions DOCOMO as a significant reference customer for Broadcom’s consolidated VMware software portfolio.

The platform will support both virtual machines and containers through VMware’s Kubernetes service. This approach allows DOCOMO to operate different workloads within a common environment while continuing to modernize its infrastructure.

DOCOMO has used VMware products across multiple systems and has operated its private cloud on the platform since 2019. The new agreement extends that relationship as the carrier seeks to maintain service quality, manage traffic fluctuations and upgrade its systems without disrupting operations.

For telecommunications operators, these requirements can make infrastructure migration difficult. Software embedded in critical network systems can be costly and operationally risky to replace, particularly when reliability and service continuity are priorities.

Software Provides a Second Growth Engine for Broadcom

Broadcom’s investment case remains closely associated with artificial intelligence semiconductors, but its infrastructure software business provides another source of revenue.

During the fiscal third quarter cited in the company’s financial disclosures, AI semiconductor revenue reached $16.7 billion, more than tripling from the year-earlier period. Infrastructure software revenue increased 29% to $8.75 billion.

Software accounted for approximately 30% of total sales, with its share declining as semiconductor revenue expanded more rapidly.

The DOCOMO agreement could support Broadcom’s software strategy in two ways. First, a decade-long licensing and support commitment may improve revenue visibility. Second, a major telecommunications customer could serve as a reference for Broadcom when other operators evaluate their VMware arrangements.

However, the contract’s financial terms have not been disclosed, making it difficult to quantify its direct contribution to revenue or profitability. Its significance may therefore lie more in customer retention and commercial positioning than in its immediate financial impact.

AI Infrastructure and Future Network Development

Broadcom has also linked its software business to growing demand for AI infrastructure. Chief Executive Officer Hock Tan said in June that processors sold alongside AI chips were accelerating growth in VMware’s business.

DOCOMO’s plans to develop its infrastructure around future AI workloads align with this broader strategy. The company also intends for its platform to evolve alongside AI-driven security threats, 6G networks and NTT’s Innovative Optical and Wireless Network project.

These ambitions suggest that the agreement is intended to support a longer technology roadmap rather than simply renew existing software licenses. Nevertheless, the agreement does not establish the financial contribution that future AI workloads or network developments will make to Broadcom.

What Investors Should Watch Next

The broader question for investors is whether DOCOMO’s commitment becomes part of a wider pattern among telecommunications operators. Broadcom’s VMware strategy has faced scrutiny over licensing costs, support conditions and the difficulty customers face when considering alternatives.

If additional operators choose long-term renewals, Broadcom could strengthen the predictability of its infrastructure software business. If customers instead prioritize migration and diversification, the DOCOMO agreement may remain an important but isolated example.

The next major telecom renewals will provide a clearer indication of whether Broadcom’s approach is creating durable customer relationships or increasing incentives to seek alternatives. For investors, the balance between software retention and AI semiconductor growth remains central to assessing the company’s longer-term performance.