VMware Customers May Stay, But Broadcom Could Face Backlash 'For Years To Come'

An anonymous reader quotes a report from Ars Technica: After acquiring VMware, Broadcom swiftly enacted widespread changes that resulted in strong public backlash. A new survey of 300 director-level IT workers at companies that are customers of North American VMware provides insight into the customer reaction to Broadcom's overhaul. The survey released Thursday doesn't provide feedback from every VMware customer, but it's the first time we've seen responses from IT decision-makers working for companies paying for VMware products. It echos concerns expressed at the announcement of some of Broadcom's more controversial changes to VMware, like the end of perpetual licenses and growing costs. [...] Every person surveyed said that they expect VMware prices to rise under Broadcom. In a March "User Group Town Hall," attendees complained about "price rises of 500 and 600 percent," according to The Register. We heard in February from ServeTheHome that "smaller" cloud service providers were claiming to see costs grow tenfold. In this week's survey, 73 percent of respondents said they expect VMware prices to more than double. Twelve percent of respondents expect a price hike of 301 to 500 percent. Only 1 percent anticipate price hikes of 501 to 1,000 percent. "At this juncture post-acquisition, most larger enterprises seem to have a clear understanding of how their next procurement cycle with Broadcom will be impacted from a pricing and packaging standpoint," the report noted. Further, 95 percent of survey respondents said they view Broadcom buying VMware as disruptive to their IT strategy, with 46 percent considering it extremely or very disruptive. Widespread concerns about cost and IT strategy help explain why 99 percent of the 300 respondents said they are concerned about Broadcom owning VMware, with 46 percent being "very concerned" and 30 percent "extremely concerned." Despite widespread anxiety over Broadcom's VMware, most of the respondents said they will likely stay with VMware either partially (43 percent of respondents) or fully (40 percent). A smaller percentage of respondents said they would move more workloads to the public cloud (38 percent) or a different hypervisor (34 percent) or move entirely to the public cloud (33 percent). This is with 69 percent of respondents having at least one contract expiring with VMware within the next 12 months. [...] Top reasons cited for considering abandoning VMware partially or totally were uncertainty about Broadcom's plans, concerns about support quality under Broadcom, and changes to relationships with channel partners (each named by 36 percent of respondents). Following closely was the shift to subscription licensing (34 percent), expected price bumps (33 percent), and personal negative experiences with Broadcom (33 percent). Broadcom's history with big buys like Symantec and CA Technologies also has 32 percent of people surveyed considering leaving VMware. "The emotional shock has started to metabolize inside of the Broadcom customer base, but it's metabolized in the form of strong commitment to mitigating the negative impacts of the Broadcom VMware acquisition," said Kyle Campos, CTPO for CloudBolt Software, the company that commissioned the study. He warned that Broadcom could see backlash continue "for months and even years to come."

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