It’s no secret that Nutanix is ​​going after VMware customers who have felt left out since its acquisition by Broadcom. However, the CEO warns that a tsunami of new customers is not an option.

Nutanix is ​​uniquely positioned to benefit from Broadcom’s acquisition of VMware. With a new strategy, Broadcom focuses exclusively on the world’s largest customers, including through mandatory license bundling. Smaller parties are left out and sometimes see the license costs for their purchases increase tenfold. Nutanix has never had a reputation for being the cheapest provider, but compared to the new VMware licenses, the company’s solutions are suddenly a very attractive alternative for many companies.

No tsunami

Nevertheless, Nutanix CEO Rajiv Ramaswami is dampening expectations. Although he confirms that he expects an influx of VMware customers, there will be no tsunami. “Many customers signed multi-year contracts with VMware before the acquisition with Broadcom was completed,” he says. “You have time to make your decision.”

Other parties may need to innovate but are catching up in speed. Anyone who is thinking about extending their license agreement within a few months cannot suddenly pack their bags and switch to an alternative like Nutanix. Migration takes time.

The CEO therefore assumes that the opportunities for Nutanix will gradually increase. First, Ramaswami assumes that customers with a 3-tier environment who need a renewal will be willing to have a good conversation with Nutanix. The benefits of HCI will be high on the agenda in this conversation.

Broadcom sees happiness

Broadcom, for its part, disagrees with the findings of Nutanix and others. Speaking to ITdaily, Padma Sudarsan, Chief Architect Software Defined Edge for VMware at Broadcom, reiterated that Broadcom wanted to “simplify the offering and ensure that customers are buying the right products that provide them the most value,” adding that she noticed is that prospects and customers love Broadcom’s honesty.

We hear there is some truth to this claim, but only for the largest companies. For them, Broadcom’s new strategy is actually clear and interesting. Slightly smaller parties, which still fall under the “large” category by Belgian standards, would be less satisfied.