Since Broadcom’s acquisition of VMware, the company has been facing backlash from customers due to significant licensing cost increases. Many customers, including the European cloud organization CISPE, have criticized Broadcom’s tactics, calling them brutal and potentially damaging to the cloud infrastructure sector in Europe.
One customer, Computershare, spoke about their experience at a conference, revealing that they decided to migrate to a different hypervisor due to the steep increase in licensing costs following Broadcom’s acquisition of VMware. This decision, although initially challenging, is expected to pay off in the near future. While Computershare did not explicitly name VMware, the details presented in their keynote suggest that they were referring to the company.
This development is concerning for Broadcom, as it indicates that companies may not be as reliant on VMware as previously thought. Broadcom has a track record of acquiring companies and maximizing profits, leading to apprehension among employees and customers prior to the acquisition of VMware. There have been reports of employees actively seeking other job opportunities due to the uncertain future of the company.
Broadcom’s CEO has attempted to reassure customers, but the example of Computershare shows that these efforts may not be sufficient. The company now faces the challenge of retaining customers and rebuilding trust in the wake of these pricing changes. Only time will tell whether Broadcom will change its approach or continue to lose customers as a result of these controversial tactics.
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