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u/biffbobfred 11h ago
So many people running to get off of VMware. They’re gonna find out what network effects mean when people show up to jobs and they’re asked “what have you used previously that you liked” and NOBODY says VMWare and they just die
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u/chat-lu 11h ago
That’s part of the calculus. They jack up the price tenfold knowing that if more than 10% of their customers are stuck with them, they make bank.
Of course long term the product is dead. But they don’t care.
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u/CustomDark 11h ago
You’ve got it. Broadcom plans on raking customers who can’t leave over the coals. This is their strategy. If you’ve laid off half your staff, you’re vulnerable to Broadcom for the long term. They can raise prices, and you can’t quickly move all the complexity you own, because AI isn’t armed on everything your now garbage business made before letting folks go.
80% will leave. 20% will hand over their margins to Broadcom until they fail. That 20% is Broadcoms target audience.
Amazon Elastic VMWare service and Azure VMWare service can no longer sell you licenses - It’s BYOL. To even try to use this as a bridge to escape them requires you to get a license from Broadcom. They know you won’t migrate off of it, because you’d have gone native AWS or Azure or GCP if you could physically do it.
Oracle must be jealous of this acquisition
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u/Werftflammen 9h ago
I thought the game was to cut support costs by only keeping the really big accounts?
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u/chat-lu 9h ago
The game is to increase cost by between 10x and 160x depending on the customer and assuming that enough people are stuck with them that it will be worth it. And they were right.
If you can afford that hike without going out business, you are a really big account.
The cost they cut is mostly R&D. They are not competing for new users, they’ll never get new users. So they don’t need new features.
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u/Nexzus_ 11h ago
Isn't their goal just to keep like their 30 biggest customers, and fuck-off everyone else?
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u/PlumieShade 10h ago
true, it feels like they just cater to the big spenders, while the rest of us get ignored. I've seen it happen in several stores too.
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u/lawl-butts 5h ago
Used to be a network admin that worked with VMware.
Now thats completely useless.
Fuck everything that happened with that. What a waste of my life.
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u/_DuranDuran_ 6h ago
Hock Tan is a fucking psychopath. Truly the worst of all tech CEOs, but he manages to fly under the radar.
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u/luke_specter_817 4h ago
Taking away the espresso machines is just pure villain behavior at least the turtles survived the corporate restructuring.
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u/argefox 12h ago
A shit company went shittier, proving that in technology you can go even lower by simply being owned by Broadcom and breaking a new low on being a shit provider of turd flavored services.