The CEO of Broadcom draws a positive conclusion from the acquisition of VMware. He admits that the adjustments Broadcom made were not well received by everyone.

Broadcom CEO Hock Tan admits that not everyone in the VMware community is happy with the virtualization specialist’s progress since the acquisition. “We recognize that the changes have caused discomfort among our customers and partners,” he said in a blog post. In it, Tan takes stock of the first hundred days since taking over VMware.

First recognition

The short sentence is striking when you consider that Broadcom has apparently driven innovation primarily with blinders on. Despite complaints from customers that their license costs have skyrocketed tenfold or more, official Broadcom spokespeople continued to emphasize that their strategy is primarily about simplicity and how satisfied customers are with it. Tan now points out that Broadcom has at least realized that this joy is not universal.

Nevertheless, the blog post reads primarily like good news. The CEO also points to the completely restructured portfolio, the new simplified licensing model in which all solutions are to be bundled, and the internal reorganization. Tan also claims that this new approach brings simplicity and effectiveness.

Speed ​​of change

He seems to see the speed of change as the source of difficulties for smaller customers and partners, not the changes themselves. However, the exclusive focus on the world’s largest companies and the mandatory bundling of licenses that were advantageously available separately is a blow Face for companies that have built their IT infrastructure around one aspect of the VMware offering rather than the entire ecosystem. They suddenly have to look for a solution, but Tan doesn’t say a word about it either.

However, he points to the greater gains that partners can achieve under the new administration. Tan probably only means the large partners who are allowed to maintain their relationships with VMware. For them, the restructuring actually means that sales can increase. For large companies that are fully in the VMware portfolio, there is even a win-win situation. Anyone who hoped that Broadcom would also listen to the smaller players can gradually think about alternatives.