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A long, costly road ahead for customers abandoning Broadcom’s VMware

Arstechnica

Arstechnica · 5m ago

A long, costly road ahead for customers abandoning Broadcom’s VMware

The acquisition of VMware by Broadcom has led to dissatisfaction among its clients due to rising costs and complex service changes. Many companies are contemplating reducing or ending their association with VMware. The price increases are attributed to Broadcom's bundling tactics, and technical support has become inadequate. Migrating from VMware is a challenging and costly process, causing hesitancy among users. Despite some potential pricing relief, the overall scenario presents a tough choice for VMware customers.

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Related News

VMware admits sweeping Broadcom changes are worrying customers

Arstechnica

Arstechnica · 1y ago

VMware admits sweeping Broadcom changes are worrying customers

Broadcom's changes to VMware since acquiring the company are causing concerns among customers and partners. VMware is facing challenges as customers evaluate how to maximize value from their products and deal with the shift from perpetual license sales to a subscription-based model. Broadcom's decision to discontinue certain VMware products and end the VMware partner program is also causing confusion and potential infrastructure changes for smaller businesses. While Broadcom defends the changes as necessary, the implications of these decisions remain to be seen.

VMware cloud partners demand “firm regulatory action” on Broadcom

Arstechnica

Arstechnica · 1m ago

VMware cloud partners demand “firm regulatory action” on Broadcom

A report by the European Cloud Competition Observatory criticizes Broadcom's business model for VMware, labeling it "legally and ethically flawed." The report accuses Broadcom of imposing burdensome financial obligations on VMware customers by transitioning licensing models and pushing for regulatory action. It claims that Broadcom places pressure on partners and customers while hindering competitors. As smaller cloud service providers struggle, many businesses are seeking alternatives to VMware, prompting calls for urgent regulatory intervention.

VMware by Broadcom is overhauling its training for an all-new experience

Techradar

Techradar · 1y ago

VMware by Broadcom is overhauling its training for an all-new experience

Broadcom is overhauling its training experience for VMware, aiming to offer more training at a lower cost. The company recently made its digital content library, including on-demand courseware, free for VMware Cloud Foundation customers, strategic customer segment, and Broadcom Advantage program partners. The move is seen as a strategic approach to attract more customers and ease the financial burden of adopting Cloud Foundation. However, access to the revamped training for the broader VMware community is yet to be confirmed. Despite some pushback, Broadcom CEO Hock Tan expects double-digit growth to boost VMware's profitability after the company's acquisition.

VMware sandbox escape bugs are so critical, patches are released for end-of-life products

Arstechnica

Arstechnica · 1y ago

VMware sandbox escape bugs are so critical, patches are released for end-of-life products

VMware has issued a warning to customers to promptly patch critical vulnerabilities in its ESXi, Workstation, Fusion, and Cloud Foundation products. The vulnerabilities, including two with high severity ratings, expose a gap in the virtual machine sandbox protection, allowing hackers to escape and access sensitive data. VMware has classified the situation as an emergency change requiring immediate action. The company has provided detailed instructions on mitigating the risks, including removing USB controllers as a temporary solution. Although there is no evidence of active exploitation, VMware urges customers to ensure their systems are up to date.

Broadcom reverses controversial plan in effort to cull VMware migrations

Arstechnica

Arstechnica · 7m ago

Broadcom reverses controversial plan in effort to cull VMware migrations

Broadcom is changing its strategy with VMware, no longer dealing directly with the biggest 2,000 customers, but instead collaborating with VMware's top 500 customers. This shift is aimed at discouraging migrations from VMware. However, customers have voiced concerns over Broadcom's previous controversial changes, including ending perpetual license sales and VMware's channel partner program. Broadcom hopes to mitigate this by involving channel partners in deals and providing additional value for customers. The move is an attempt to retain business and promote the implementation of Broadcom's private cloud bundles.

“Extreme” Broadcom-proposed price hike would up VMware costs 1,050%, AT&T says

Arstechnica

Arstechnica · 9m ago

“Extreme” Broadcom-proposed price hike would up VMware costs 1,050%, AT&T says

- AT&T has accused Broadcom of quoting a 1,050 percent price hike for VMware offerings in legal documents related to a dispute over support services. - AT&T argues that it should have the right to renew support through September 2026 based on a previously signed five-year deal. - Many VMware customers have complained about Broadcom's changes, including increased prices and bundling products into fewer SKUs. - AT&T claims that migration costs to move away from VMware would range from $40 million to $50 million. - Broadcom has not publicly commented on the allegations and has requested that AT&T's request to block the discontinuation of VMware support be denied.

Broadcom says “many” VMware perpetual licenses got support extensions

Arstechnica

Arstechnica · 1y ago

Broadcom says “many” VMware perpetual licenses got support extensions

Broadcom CEO Hock Tan has announced support extensions for some VMware perpetual license holders in an effort to address concerns over the company's recent business model changes. The extensions come after Broadcom's decision to end perpetual license sales for VMware and prioritize subscriptions. Tan also revealed plans to provide free access to zero-day security patches for supported versions of vSphere. These moves follow questioning by EU antitrust regulators over alleged changes to VMware's licensing and support conditions. Meanwhile, VMware channel partners and customers have voiced concerns over Broadcom's focus on larger businesses and increased pricing.

Broadcom killing VMware partner program could disrupt thousands of businesses

Arstechnica

Arstechnica · 1y ago

Broadcom killing VMware partner program could disrupt thousands of businesses

Broadcom, the new owner of VMware, is ending the partner programs of the virtualization and cloud computing company. From April 30, 2024, VMware's partnership with solution providers, resellers, and distributors will come to an end, potentially disrupting tens of thousands of businesses. The lack of clarity from Broadcom about who will be invited to its partner program has caused uncertainty among VMware partners and customers. There are concerns that only a small percentage of cloud service providers will be invited, leaving many without access to VMware.

Broadcom’s AI success won’t all come at Nvidia’s expense

Livemint

Livemint · 7m ago

Broadcom’s AI success won’t all come at Nvidia’s expense

Broadcom's long-term forecast for its AI business has boosted the company's stock price, pushing its market capitalization over $1 trillion. This surge has negatively impacted Nvidia's stock price, which has declined by about 4% in the past two days. While Broadcom's market cap is still far below Nvidia's, the recent boost in stock price has brought Broadcom's price-to-earnings ratio to its highest ever. This is due to its exposure to the AI market as a supplier of networking processors and partnerships with major tech companies developing their own AI chips. However, Nvidia's market-leading silicon is still in high demand, as companies like Google and Amazon continue to emphasize their partnership with Nvidia. Both Broadcom and Nvidia are still expected to perform well in the AI market, with analysts maintaining a buy rating for both stocks.

VMware admits sweeping Broadcom changes are worrying customers

Techradar

Techradar · 1y ago

VMware admits sweeping Broadcom changes are worrying customers

Following Broadcom's acquisition of VMware in November 2023, major changes to the company's business model have led to widespread customer dissatisfaction. VMware's VP for Cloud Platform, Infrastructure, and Solutions Marketing, Prashanth Shenoy, addressed these concerns in a blog post, emphasizing the positive aspects of the changes. One key change causing customer discontent is Broadcom's decision to replace perpetual licenses with a subscription-based model. Shenoy defended the decision, highlighting the flexibility of monthly renewals. However, retaining and attracting customers will be a challenge for VMware amidst these changes.

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