A year after Broadcom acquired VMware, the financial picture looks positive for Broadcom, with rising revenue driven by its shift to per-core subscriptions for software and support bundles. While customer satisfaction is reportedly low, they haven't abandoned the platform yet. Broadcom claims the new model delivers strong ROI despite higher overall bills.
Customers are 'all miserable' but not yet deciding to bail - and AT&T appears to have settled its licensing dispute
On the financial scoreboard, Broadcom says the deal looks like a winner. Revenue is on the rise already – a sign that customers are buying into its strategy of no longer selling standalone support services to holders of perpetual licenses and instead offering per-core subscriptions to bundles of software and support. It leads with the VMware Cloud Foundation private cloud stack, and points out that it's effectively lowered prices for the components of the bundle.
"CIOs do not forget," he warned."They will put up with the pain, but only for as long as they have to." Most hatch plans to procure in three-year cycles and many will sign with VMware for that period and use the time to plan an exit and/or a strategy to modernize their IT estates.Another way to consider whether Broadcom has succeeded is to match its promises to its deeds.
Another issue that users and channel alike have complained about is the less-than-entirely-successful migration of VMware's support platform to Broadcom's own portal.still hears of VMware users struggling to access license keys. Support can also be spotty. Broadcom has offloaded some support services to its partners, but we hear some have struggled to put the right people in place to handle tricky customer queries.
Broadcom Vmware Acquisition Per-Core Subscriptions Customer Satisfaction
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