Broadcom reverses controversial plan in effort to cull VMware migrations

Broadcom will only hog 500 of VMware's biggest customers, instead of 2,000.

Dec 5, 2024 - 21:12
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Broadcom reverses controversial plan in effort to cull VMware migrations

Broadcom will no longer take VMware's biggest 2,000 customers directly. Instead, it will work with VMware's 500 biggest customers, giving channel partners the opportunity to participate in deals and provide additional value for VMware customers. The reversal is being viewed as an effort from Broadcom to discourage migrations from VMware, but there's skepticism around how much impact it will truly have.

Various customers have lamented the changes that succeeded Broadcom buying VMware about a year ago. Controversial moves have included ending perpetual license sales, bundling VMware products into a smaller number of SKUs, and ending VMware's channel partner program. These changes have led some firms to consider reducing their business with VMware.

This week, for example, United Kingdom (UK)-headquartered cloud operator Beeks Group said that a 1,000 percent increase in VMware costs led to it moving most of its 20,000-plus virtual machines to OpenNebula. And numerous customers that Ars Technica has spoken with in the last year are seriously researching or planning total or partial VMware migrations.

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