Following Broadcom’s acquisition of VMware, the company has been facing challenges, including losing a customer with 24,000 licenses due to drastic licensing cost increases. The European cloud organization CISPE condemned Broadcom’s tactics, calling them “brutal” and warning that they would harm Europe’s independent cloud infrastructure sector.
At a conference, Computershare CTO Kevin O’Connor shared how he switched from VMware to Nutanix AHV due to significant licensing cost increases. While O’Connor did not mention VMware by name, it was clear that he was referring to the company. This move indicates that VMware may not be as essential to Broadcom as previously believed.
Broadcom is known for acquiring companies and maximizing profits, causing concern among employees leading up to the deal’s completion. Many employees were looking for other job opportunities due to feeling overlooked and cheated. Broadcom’s CEO has taken steps to reassure customers, but the report from Computershare suggests that more efforts may be needed to retain customers and employees.
The situation highlights the importance of companies managing acquisitions with sensitivity and transparency to ensure customer retention and employee morale. Only time will tell if Broadcom addresses these challenges and retains its customer base in the long run.
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