{"id":37358,"date":"2025-03-17T00:08:45","date_gmt":"2025-03-16T23:08:45","guid":{"rendered":"http:\/\/159.69.82.204\/win\/?p=37358"},"modified":"2025-03-14T12:38:39","modified_gmt":"2025-03-14T11:38:39","slug":"has-broadcoms-vmware-bet-paid-off-customers-book-largest-package","status":"publish","type":"post","link":"https:\/\/borncity.com\/win\/2025\/03\/17\/has-broadcoms-vmware-bet-paid-off-customers-book-largest-package\/","title":{"rendered":"Has Broadcom's VMware bet paid off? Customers book largest package"},"content":{"rendered":"

[German<\/a>]I'm adding yet another brick to the never-ending saga of \"Broadcom buys VMware and squeezes the customers\". It looks as if Broadcom's bet to squeeze as much money as possible out of VMware customers has paid off. The other day I read that 70 percent of large VMware customers currently book the vendor's largest license package.<\/p>\n

<\/p>\n

Distortions in the VMware license business<\/h2>\n

\"\"I have written numerous articles here on the blog about the trials and tribulations that VMware customers have faced following the takeover by Broadcom (see links at the end of the article). VMware customers were faced with discontinued products, the switch to the VMware Cloud Foundation (VCF) and accompanying price increases. Broadcom saw the cash registers ringing, as I revealed in the German article Broadcom erwartet 2024 bei VMware quartalsweises Umsatzwachstum im zweistelligen Prozentbereich<\/a>.<\/p>\n

For existing VMware customers, it's \"eat or die\", some customers have now said goodbye to VMware by Broadcom and switched to alternative virtualization solutions. Other customers are still working with old contracts, but are starting the migration.<\/p>\n

70% of major customers book the most expensive package<\/h2>\n

And there are major customers that Broadcom is targeting who do not want to or cannot switch (analysts had indicated switching costs of up to 3,000 US dollars per VM, as stated by German site heise here<\/a>). And here Broadcom's calculation that there is real money to be made in this area seems to be working out – at least Broadcom is now \"harvesting\".<\/p>\n

On March 7, 2025, The Register published the article Broadcom has won. 70 percent of large VMware customers bought its biggest bundle<\/a>. The message: The acquisition of VMware by Broadcom appears to be a great success. This is evident from the company's financial statements<\/a> for the first quarter of the fiscal year 2025 (ended February 2, 2025).<\/p>\n

The turnover of 14.92 billion US dollars corresponds to growth of 25% compared to the previous year, it said. Net profit of 5.5 billion dollars was 315% higher than the result for the first quarter of 2024.<\/p>\n

The company announced that a large majority of its 10,000 top customers have opted to purchase its Cloud Foundation Stack (VCF) and is experiencing strong growth.<\/p>\n

In a Broadcom earnings call, CEO Hock Tan told investors, according to The Register, \"We are selling customers on a full stack VCF … and at the end of the first quarter, about 70 percent of our largest 10,000 customers have adopted VCF.\" VMWare Cloud Foundation (VCF) is the largest of the packages offered by VMware by Broadcom. This means that customers are likely to receive higher bills for their existing VCF contracts at upcoming license renewals. Good for the coffers for Broadcom – how these customers see it, I'm not sure at the moment.<\/p>\n

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[German]I'm adding yet another brick to the never-ending saga of \"Broadcom buys VMware and squeezes the customers\". It looks as if Broadcom's bet to squeeze as much money as possible out of VMware customers has paid off. The other day … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1218],"tags":[1710],"class_list":["post-37358","post","type-post","status-publish","format-standard","hentry","category-virtualization","tag-vmware"],"_links":{"self":[{"href":"https:\/\/borncity.com\/win\/wp-json\/wp\/v2\/posts\/37358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/borncity.com\/win\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/borncity.com\/win\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/borncity.com\/win\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/borncity.com\/win\/wp-json\/wp\/v2\/comments?post=37358"}],"version-history":[{"count":3,"href":"https:\/\/borncity.com\/win\/wp-json\/wp\/v2\/posts\/37358\/revisions"}],"predecessor-version":[{"id":37363,"href":"https:\/\/borncity.com\/win\/wp-json\/wp\/v2\/posts\/37358\/revisions\/37363"}],"wp:attachment":[{"href":"https:\/\/borncity.com\/win\/wp-json\/wp\/v2\/media?parent=37358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/borncity.com\/win\/wp-json\/wp\/v2\/categories?post=37358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/borncity.com\/win\/wp-json\/wp\/v2\/tags?post=37358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}