2024-03-16 18:51:00
CEO Broadcom Hock Tan (Hock Tan), po message The Register commented on the new policy being implemented in relation to VMware’s business. Let us recall that Broadcom acquired this virtualization software developer in November 2023: the transaction amount was $69 billion.
Following the completion of the merger, VMware’s structure was restructured to create four key divisions. Broadcom canceled perpetual licenses, switched all products to a subscription scheme, and the range was radically reduced. In particular, distribution of free versions of the vSphere ESXi 7.x/8.x hypervisor has been stopped. At the same time, discounts have been abolished and the approach to interaction with partners has been changed. All this led to dissatisfaction on the part of a number of customers, some of whom began to explore the possibility of switching to alternative solutions.
Image Source: Broadcom
Mr Tan says the changes are aimed at accelerating innovation, better meeting customer needs and simplifying business operations. In addition, the new policy is expected to help increase profits and expand opportunities for partners. However, the head of Broadcom admits that such a significant transformation has caused concern among customers.
«While there is still much work to be done, we have made significant progress in building the world’s leading infrastructure technology company. Since the completion of the transaction, we have acted decisively to add value to customers. Of course, we understand that this volume of changes has understandably caused some concern among our clients and partners“Tan noted.
Broadcom has divided all products into two directions: VMware Cloud Foundation (VCF) and VMware vSphere Foundation (VVF). Mr. Tan touts the benefits of taking this approach, pledging $1 billion for research and development and highlighting that Broadcom has halved its subscription price. Prashanth Shenoy, vice president of marketing for cloud platforms, infrastructure and VCF products, also stated that customers using an end-to-end VCF solution will be able to save up to half the costs. However, for those customers who used only vSphere, costs will, on the contrary, increase.
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