Broadcom CEO acknowledges VMware-related ‘discomfort’
To mark 100 days since the VMware acquisition, Broadom CEO Hock Tan has addressed concerns raised by customers and partners about the significant changes made to the company in the weeks and months that followed.
In a blog post, Tan acknowledged the “unease” that customers and partners felt following Broadcom’s extensive changes, which the company had previously declared as part of a grand plan to make VMware more profitable. The news comes about a month after Cloud Platform VP Prashanth Shenoy also addressed customer concerns.
Tan noted that Broadcom spent the 18 months leading up to the acquisition evaluating the business, highlighting the substantial progress made since then.
According to Tan, Broadcom has increased customer value since acquiring VMware in November, but many are left with a bitter taste in their mouths following changes such as the transition of the channel partner program to invite-only and the end of perpetual licensing. which caused price increases of up to 600% (via The register).
In the announcement, Tan draws inspiration from other Fortune 500 companies, citing his intention to significantly increase profitability.
Despite the discomfort among customers and partners, Tan expressed confidence that these changes would lead to better market opportunities, reiterating the company’s commitment to invest $1 billion in innovation.
Tan also provided some context for the changes Broadcom has made to VMware, reflecting on conversations with CIOs, CTOs, partners and influencers in the months leading up to the deal.
Concerns about the slowdown due to technological complexity, the need for simplified IT support and the importance of resilience and security have all influenced recent decisions.
As Broadcom continues to navigate the integration of VMware into its own ecosystem, the industry continues to watch as the virtualization landscape evolves.
Looking ahead, Tan said: “There is much more to come.” Take that as you will, whether it’s a threat of more drastic changes or something more positive news.