Broadcom has revamped its approach to directly engage with 500 of its 'strategic' VMware customers, down from 2,000, amid concerns over rising licensing costs and potential migrations to rivals.
Now wants to work with 500 and lean more on partners to defend against migrations – which Dell says are on the cards Broadcom has revised its strategy to work directly with the top 2,000"strategic" VMware users, and will instead focus on just 500 – a move that Canalys chief analyst Alastair Edwards described as"a U-turn.
Speaking at the Canalys APAC Forum in Indonesia today, Edwards said Broadcom recognizes that its best defense against possible migrations is making sure customers implement its full private cloud bundles and see strong return on investment. Broadcom sees giving 1,500 big users back to partners as the way to make that happen, and is even giving its channel 15 percent of the value of deals they win to fund professional services so that VMware software is quickly made operational.
Millard said customers are asking"What do I do?" when it's time to renew VMware licenses."Am I going to stay on VMware, or am I going to shift or am I going to have a hybrid model?""Customers are saying they want investment protection," Millard observed, as they feel a single integrated stack no longer offers the efficiency they need, and are willing to mix vanilla servers running different hypervisors and converged stacks.
Mixing things up, Millard suggested, protects customer investments by avoiding lock-in. She also observed that helping VMware users to plan their next move is a nice opportunity for services orgs – the audience at the Canalys event. Dell will happily sell whatever VMware users want – virtualization stacks from Red Hat, Nutanix, or VMware – and its own servers, natch.that Broadcom's changes at VMware came"at the expense of customer and partner relationships" and said he is unsure if it has done enough to turn the tide. ® Customers are 'all miserable' but not yet deciding to bail - and AT&T appears to have settled its licensing disputeMicrosoft, Oracle, and IBM are all doing it.
Broadcom Vmware Licensing Costs Customer Strategy Cloud Computing
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