VMware Admits Sweeping Broadcom Changes Are Worrying Customers

An anonymous reader quotes a report from Ars Technica: Broadcom has made a lot of changes to VMware since closing its acquisition of the company in November. On Wednesday, VMware admitted that these changes are worrying customers. With customers mulling alternatives and partners complaining, VMware is trying to do damage control and convince people that change is good. Not surprisingly, the plea comes from a VMware marketing executive: Prashanth Shenoy, VP of product and technical marketing for the Cloud, Infrastructure, Platforms, and Solutions group at VMware. In Wednesday's announcement, Shenoy admitted that VMware "has been all about change" since being swooped up for $61 billion. This has resulted in "many questions and concerns" as customers "evaluate how to maximize value from" VMware products. Among these changes is VMware ending perpetual license sales in favor of a subscription-based business model. VMware had a history of relying on perpetual licensing; VMware called the model its "most renowned" a year ago. Shenoy's blog sought to provide reasoning for the change, with the executive writing that "all major enterprise software providers are on [subscription models] today." However, the idea that '"everyone's doing it" has done little to ameliorate impacted customers who prefer paying for something once and owning it indefinitely (while paying for associated support costs). Customers are also dealing with budget concerns with already paid-for licenses set to lose support and the only alternative being a monthly fee. Shenoy's blog, though, focused on license portability. "This means you will be able to deploy on-premises and then take your subscription at any time to a supported Hyperscaler or VMware Cloud Services Provider environment as desired. You retain your license subscription as you move," Shenoy wrote, noting new Google Cloud VMware Engine license portability support for VMware Cloud Foundation. Further, Shenoy claimed the discontinuation of VMware products so that Broadcom could focus on VMware Cloud Foundation and vSphere Foundation would be beneficial, because "offering a few offerings that are lower in price on the high end and are packed with more value for the same or less cost on the lower end makes business sense for customers, partners, and VMware." VMware's Wednesday post also addressed Broadcom taking VMware's biggest customers direct, removing channel partners from the equation: "It makes business sense for Broadcom to have close relationships with its most strategic VMware customers to make sure VMware Cloud Foundation is being adopted, used, and providing customer value. However, we expect there will be a role change in accounts that will have to be worked through so that both Broadcom and our partners are providing the most value and greatest impact to strategic customers. And, partners will play a critical role in adding value beyond what Broadcom may be able." "Broadcom identified things that needed to change and, as a responsible company, made the changes quickly and decisively," added Shenoy. "The changes that have taken place over the past 60+ days were absolutely necessary."

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