Broadcom’s acquisition of VMware has led to increased prices for larger customers, leading to speculation that smaller customers may be pushed out. A recent migration of 24,000 seats by Computershare has raised concerns about the direction of the company. Avago, the company that owns Broadcom and VMware, has a history of aggressive growth strategies, leading some to question their approach.
Despite Broadcom’s attempts to create a monopoly in niche markets, VMware‘s virtualization technology remains resistant to lock-in. The ease of migration and deployment in virtualized environments makes it difficult for Broadcom to force customers to stay. The recent migration by Computershare, which paid for itself in less than a year, suggests that customers may not be as captive as Broadcom assumes.
While Broadcom’s focus on AI chip development has been successful, the future of VMware within the company is uncertain. As Broadcom continues to grow and evolve, strategic decisions about the future of VMware will need to be made. The possibility of divesting VMware to focus on other areas, such as battling Nvidia in the AI market, is becoming more likely. This uncertainty creates challenges for VMware users who may face more changes in the future. The equation of pain has shifted, but the overall impact remains uncertain.
Article Source
https://www.theregister.com/AMP/2024/06/03/broadcoms_vmware_strategy_looks_ever/