To mark 100 days since its acquisition of VMware, Broadom CEO Hock Tan has addressed concerns raised by customers and partners regarding the significant changes made to the company in the weeks and months that have followed.
In a blog post, Tan acknowledged the “unease” felt by customers and partners in the wake of Broadcom’s extensive alterations, which the company had previously declared were part of a grand plan to make VMware more profitable.
Tan noted that Broadcom spent the 18 months leading up to its acquisition evaluating the company, highlighting the substantial progress made since then.
Broadcom admits some VMware customers are upset
According to Tan, Broadcom has increased customer value since VMware was bought out in November, but many have been left with a bitter taste in the mouth after changes like the transition of its channel partner program to invite-only, and the termination of perpetual licenses which caused price rises of up to 600% (via The Register).
In the announcement, Tan draws inspiration from other Fortune 500 companies, alluding to his intention to significantly boost profitability.
Despite the unease among customers and partners, Tan expressed confidence that these changes would lead to improved market opportunities, reiterating the company’s commitment to invest $1 billion in innovation.
Tan also provided some context to the changes that Broadcom has been making to VMware, casting his thoughts back to discussions with CIOs, CTOs, partners and influencers in the months leading up to the deal.
Concerns about slowdown by technological complexity, the need for simplified IT support, and the importance of resilience and security have all weighed in on recent decisions. The news comes around one month after Cloud Platform VP Prashanth Shenoy also addressed customer apprehension.
As Broadcom continues to navigate the integration of VMware into its own ecosystem, the industry continues to watch on as the virtualization landscape evolves.
Looking ahead, Tan said: “There's much more to come.” Take that as you will, be it a threat of more drastic changes or some slightly more positive news.
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