this post was submitted on 22 Jun 2025
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Customers dismayed by Broadcom's move to selling costly bundles such as VMware Cloud Foundation (VCF) will realize its value if they'd just use more of the components, the company's CTO says.

VMware, now a Broadcom subsidiary, is shifting away from selling perpetual licenses for individual products. It instead offers subscription bundles of software and support, such as its flagship VCF private cloud platform – version 9 of which was released this week.

The largest enterprise users seem content with this. Broadcom chief Hock Tan told investors this month that 87 percent of VMware's top 10,000 customers have signed up for VCF.

However some smaller and middle sized customers reacted negatively to the licensing changes, claiming their costs have increased by eight to 15 times since the Broadcom acquisition, and there are many stories of firms planning to migrate their workloads from VMware to an alternative platform in future because of this.

"A lot of those stories around cost don't play out when we actually get to sit down with the customer and talk to them about their situation, what they need, and what we're going to do with them," said Broadcom's EMEA chief technology officer, Joe Baguley.

"Initially people might go 'all the prices have gone up,' but those 87 percent of people that have renewed with us have renewed because they've chosen VCF as their strategy going forward," he claimed.

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[–] [email protected] 0 points 5 days ago

They don't understand why customers bought VMware in the first place.

[–] [email protected] 0 points 5 days ago

Our VMware has become expensive enough that we're looking at Proxmox for enterprise workloads. We also run Azure local clusters but we can get much better hardware if the budget isn't drained by licensing. On Azure local the storage is expensive because you need 3x or more mirrors for all volumes and the deduplication doesn't make it that much better. We're thinking about a PowerStore with fibre channel for the block storage and then workloads on Proxmox clusters. One of the issues with Proxmox is their support for high network speeds like 100G is experimental.

[–] [email protected] 0 points 5 days ago (1 children)

We just went through being strong armed into a VMWare solution. Our choices were, be switched over to VMware for a lot more money or move all of our infrastructure to another colo in a pretty short amount of time. They try and pitch all these bundles that we had no interest in to bring our hosting costs down. it's a straight up shakedown.

[–] [email protected] 0 points 5 days ago (1 children)

What does your colo have to do with hypervisor choice?

[–] [email protected] 0 points 5 days ago (1 children)

Colo isn't the right word, it's more of a managed cloud situation.

[–] [email protected] 0 points 5 days ago

That makes more sense.

[–] [email protected] 0 points 5 days ago* (last edited 5 days ago)

and what we’re going to do with them

Doesn't sound "accidentally" threatening at all. "They all change their tune once they hear what we're going to do with them."

[–] [email protected] 0 points 5 days ago

Do they really think anyone believes this? We know they sure don't. Broadcom's MO for ages now has been to buy successful companies and gut them for short term profit, then move on.

Who is served by the CTO making this statement? His own barely clinging on remaining shred of his malnourished and abandoned sense of concience?

Like, of course something is more worth the cost if you fully utilize all its features. But if the majority of your user base are complaining of the price and don't need or use the full feature set, it's not the customer's job to change their business use cases to fit your profit needs. It's your job to offer the product they actually need.

[–] [email protected] 0 points 5 days ago

Lol, on the other hand why not.

[–] [email protected] 0 points 5 days ago

Enshitification. 101.