Broadcom CEO Hock Tan has announced plans to simplify VMware‘s go-to-market approach and modernize its product offerings. Cindy Lloyd, vice president of global partner and commercial sales at Broadcom, highlighted the progress the company has made in strengthening its network of distributors and resellers. This included moving from 8,000 SKUs to four core offerings and offering flexible subscription terms.
Broadcom aims to enable customers and partners to deploy its private cloud solution more effectively. They’ve eliminated VMware‘s upfront payment requirement and introduced a pay-as-you-go model. Resellers can sell Broadcom’s four VMware solution offerings to end customers, while distributors operate on a net margin model with upfront discounts.
Broadcom has implemented route-to-market parity, providing transparency into profits for partners on new and renewal deals. They’ve also introduced a channel partner-delivered technical support model in certain markets, enhancing the customer experience. The IT and sales operations teams have migrated from legacy systems to a unified Broadcom system, aiming to simplify tools and systems.
Through the Advantage program, Broadcom has significantly reduced channel conflicts and optimized resources and support for partners. The $61 billion acquisition of VMware was completed on November 22, with important announcements made at the time. VMware CEO Raghu Raghuram resigned, and Broadcom CEO Hock Tan assumed a strategic advisory role.
Marc Beder, General Manager for Asia Pacific at 11:11 Systems, noted reactions to the deal ranging from frustration to acceptance. Some immediately sought alternatives, while others viewed changing platforms as a knee-jerk reaction. For many, changing an established ecosystem is not realistic overnight.
Broadcom has not yet responded to inquiries about local changes to the VMware channel. Overall, they aim to streamline processes, introduce automation, and make it easier for customers and partners to do business with them. The transition to a subscription-based business model continues, with plans to further enhance the customer experience and enable companies to optimize their IT investments.
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