Broadcom’s VMware ownership has led to increased prices for customers, causing frustration and speculation about the company’s growth model. The recent departure of a customer with 24,000 VMs suggests that the cost of migration may outweigh the benefits of staying. Broadcom’s history of acquiring companies and raising prices to drive profitability is a concern for customers facing high exit costs.
The virtualization market inherently resists lock-in, making migration between platforms manageable for most businesses. Despite concerns about increased pricing by Broadcom, some believe that the cost of leaving may not be so prohibitive in the long run. The potential for large-scale migrations like the one seen with Computershare indicates a shift in the market dynamics and potential for competition.
While Broadcom’s focus on AI technology and potential divestment of VMware may signal a shift in strategy, the impact on customers remains uncertain. As Broadcom evolves from a venture capital company to a chip manufacturer, the future of VMware within its portfolio remains unclear. Customers must navigate these changes with cautious optimism, as they consider the implications of Broadcom’s strategic decisions on their operations and costs.
Article Source
https://www.theregister.com/2024/06/03/broadcoms_vmware_strategy_looks_ever/