Global share registry operator Computershare has decided to part ways with VMware due to Broadcom’s latest licensing regime and price hikes. During the Nutanix Next conference, Computershare’s CTO Kevin O’Connor mentioned that the company was using two hypervisors, including VMware, and was quoted a significantly increased price for the non-Nutanix hypervisor. This prompted Computershare to migrate 24,000 VMs to Nutanix, a move that will pay for itself in a few months. The decision to move away from VMware was seen as a positive outcome for Computershare, as it made the company stronger and more cost-effective.
This decision may spell trouble for Broadcom, as VMware under Broadcom is known for focusing on high-revenue, high-margin businesses and pricing their products just below customers’ pain thresholds. While it is unclear if Broadcom was interested in Computershare, the company’s focus on large enterprises, combined with Computershare’s significant size and global presence, makes it a notable loss for VMware. The experience of Computershare highlights that if customers feel the pricing is too high, they will seek alternatives.
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VMware Sees Loss of Customer with 24,000 VMs
