Scott Bickley, advisory fellow at Info-Tech Research Group, agreed, saying that if Broadcom held on to just its top 10,000 VMware customers, that would be more than sufficient for it to meet its revenue and profitability goals over the next three years. “Keep in mind that VMWare has over 400K accounts, so the core business case was predicated on retention of the largest 3% of accounts,” he said.
Customers may view the price increases differently depending on how much of the licensed software they use, because the value of VMware Cloud Foundation (VCF) is maximized when all of its components are used, said Matt Kimball, VP and principal analyst at Moor Insights & Strategy. “The less it is used, the more expensive the platform will seem,” he said. “If I am a legacy VMware customer only interested in vSphere, my price increase will seem incredibly high. Conversely, if I’m using VCF to its fullest extent — virtualization, cloud, security, networking, modern apps,…
