Broadcom’s recent changes in how VMware goes to market have raised concerns among partners and customers. Jeff Ready, CEO of Scale Computing, accused Broadcom of profiting off a hospital charity during a keynote speech, highlighting the impact of pricing changes on nonprofits and charities. Since the $69 billion deal between Broadcom and VMware, product SKUs have been simplified, and customers are now required to purchase software bundles, leading to increased costs for many organizations.
Tom Smyth, director of technical solutions at Misco in the UK, shared a story of a children’s hospital facing an eight-fold increase in costs due to the new VMware packages. Attempts to negotiate with Broadcom on behalf of the charity proved fruitless, as the company emphasized that VMware is not for everyone and was unwilling to make exceptions for nonprofits or charities. Educational discounts offered by VMware in the past are no longer available under Broadcom, leaving organizations to cover the increased expenses themselves.
Some VMware customers are now exploring alternatives like Nutanix and Scale Computing, with Scale Computing being praised for its customer support and product reliability. Partners like Mark Essayian of KME Systems have seen an increased interest in Scale Computing as a viable option for organizations looking to move away from VMware.
While Broadcom’s changes aim to simplify product offerings and increase profitability, the impact on customers, particularly small and medium-sized businesses, has been significant. Many are facing substantial price hikes and are concerned about the level of support and innovation under the new ownership. Smyth, a self-proclaimed VMware fanboy, now navigates the challenges of discussing cost increases with customers daily.
Overall, partners like Smyth recognize the need to adapt to the changing landscape and are exploring alternative solutions like Scale Computing. While the industry undergoes shifts due to Broadcom’s acquisition of VMware, the focus remains on finding solutions that meet the needs of customers while balancing cost and performance considerations.
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https://www.crn.com/news/virtualization/2024/broadcom-tells-partner-negotiating-for-charity-VMware-is-not-for-everybody