Broadcom customers frustrated by the shift to pricey software bundles like VMware Cloud Foundation should reconsider their value, said EMEA CTO Joe Baguley, who argues that broader use of included components reveals the true benefits. He explained to The Register that as customers actually used more of the included components, they would realize the value of these bundle.
“A lot of these cost stories are put into perspective when we start talking to customers, understand their real requirements and develop concrete plans together,” the Broadcom executive said.
In the Broadcom bubble
Following the acquisition of VMware, Broadcom discontinued numerous products and bundled the remaining ones into two subscription packages, including the hybrid cloud platform VCF.
Small and medium-sized companies in particular have been left behind, some of which have been affected by cost increases of several hundred percent.
However, the upselling strategy seems to be working for large corporate customers. “Of our 10,000 largest customers, over 87% have now implemented VCF,” said Hock Tan, CEO of Broadcom, when announcing the company’s second-quarter results.
“At the beginning, many say, ‘Everything has become more expensive.’ But those 87% who have extended have consciously chosen VCF as a strategic platform for the future,” Baguley said. “When we sit down with customers and talk about what costs they expect—and what benefits they can actually derive from the platform—that’s the key point.”
Some customers who now use VCF previously only used individual components such as vSphere or certain automation tools, Baguley continued: “Now they are discovering what is possible: configuration management, security functions, cost control—all the functions for which they previously had other tools, but which were never really seamlessly integrated.”
Joe Baguley, Emea CTO of Broadcom and longtime VMware manager, defends his employer’s pricing strategy.
Broadcom
Shifting blame to customers
Shifting blame to customers that don’t want to use more VMware products – because they have other tools in place, for example, or because they want to avoid more vendor lock-in – may not sit well with customers already upset about pricing changes.
“If Broadcom had proven to be a good business partner and maintained good relationships with its longtime customers, more people might be using more features,” said one user on Reddit. “But how many price and product changes have there been in the last six months alone, let alone since the acquisition closed?”
The consequence for this anonymous customer’s company: “Given the constant changes, there’s no way I’d go further into the VMware ecosystem right now. We are trying to limit our risk, not increase it,” he explained.
Source:: Network World