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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.

Related News

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

Arstechnica

Arstechnica · 7m 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.

Broadcom reverses controversial plan in effort to cull VMware migrations

Arstechnica

Arstechnica · 8m 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.

VMware cloud partners demand “firm regulatory action” on Broadcom

Arstechnica

Arstechnica · 3m 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.

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

Arstechnica

Arstechnica · 11m 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 is selling even more VMware assets — end-compute unit set for billion-dollar deal

Techradar

Techradar · 1y ago

Broadcom is selling even more VMware assets — end-compute unit set for billion-dollar deal

Broadcom is reportedly selling off its End-User Compute (EUC) arm of VMware to private equity firm KKR for $3.8 billion. Since Broadcom acquired VMware in 2023, it has made controversial changes to the cloud computing service, including terminating perpetual licenses and axing the free ESXi Hypervisor. These changes have led to rising costs for customers, with some bills increasing by staggering amounts. The sale of the EUC sector follows Broadcom's announcement in December 2023 of its intentions to sell that part of the business. The move will likely impact VMware's government and regulated industry clientele.

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

Arstechnica

Arstechnica · 7m ago

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

After Broadcom acquired VMware in 2023, many customers grew dissatisfied and considered alternatives due to increased costs and restructuring. Organizations like a global food manufacturer faced fourfold cost rises and challenges in finding alternative virtualization platforms. With Broadcom pressuring customers into longer subscriptions and the loss of direct support, companies are concerned. Migration costs, technical challenges, and time requirements add to the complexity of leaving VMware, though some weigh these against staying under Broadcom's management.

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.

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 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.

As firms abandon VMware, Broadcom is laughing all the way to the bank

Arstechnica

Arstechnica · 8m ago

As firms abandon VMware, Broadcom is laughing all the way to the bank

Ingram Micro, one of the largest IT distributors globally, has publicly ended its relationship with Broadcom's VMware. This decision comes as Broadcom focuses on services as a key aspect of sustaining VMware's business in the future. While losing a partnership with the second-largest IT distributor may appear significant, Broadcom claims that Ingram was not a good fit for VMware. Changes in Broadcom's priorities have led to other firms scaling back their VMware relationships, exploring alternatives, and diversifying vendors. Despite these challenges, Broadcom's financial success is expected to continue with VMware.

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