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Broadcom is backtracking on its plans to personally serve VMware’s 2,000 largest customers and is limiting itself to the five hundred largest. Illustrative of Broadcom’s course. No IT
Broadcom is backtracking on its plans to personally serve VMware’s 2,000 largest customers and is limiting itself to the five hundred largest. Illustrative of Broadcom’s course.
No IT company calms people’s minds as much as Broadcom. VMware’s parent company is once again making a 180-degree turn. Broadcom announced at the beginning of the year that it would personally support the 2,000 largest VMware customers. This plan is partially revised and is limited to the five hundred largest companies. A decision made quietly during VMware Explore and now published by The Register.
It’s been a year since Broadcom acquired VMware, but not all customers are convinced by the renewed portfolio. Broadcom therefore chooses to personally serve the largest and most lucrative customers. This way, Broadcom ensures that these customers stay on board and also purchase the full VMware package. “Smaller” customers are referred to partners.
The change highlights the course VMware is taking under the new administration. Broadcom is only interested in the largest companies and therefore draws the line at the top 500. For what Broadcom sees as smaller customers, the reorganized portfolio now primarily means higher license costs and mandatory bundles. Take it or leave it, is the message.
The numbers prove Broadcom right. VMware has managed to significantly reduce costs and investors are happy about it. Hyperscalers also have to comply with Broadcom’s wishes. Sales are also down slightly, but that seems to be part of the master plan. If the big fish stay on board and go all-in, the cash register keeps ringing.
Disgruntled customers shouldn’t expect anything more from Broadcom than an acknowledgment of “some inconvenience.” Interest groups criticize Broadcom’s behavior, but that doesn’t change much. Broadcom doesn’t want to hear it and doesn’t care.
Companies whose VMware licenses are expiring are faced with the dilemma of “stay or go?” and Broadcom isn’t giving much time to think. Dell and Nutanix, among others, expected a mass exodus of VMware customers, but that doesn’t seem to be happening for the time being.
Source: IT Daily
As an experienced journalist and author, Mary has been reporting on the latest news and trends for over 5 years. With a passion for uncovering the stories behind the headlines, Mary has earned a reputation as a trusted voice in the world of journalism. Her writing style is insightful, engaging and thought-provoking, as she takes a deep dive into the most pressing issues of our time.
