Earlier this year, Broadcom had plans to directly serve the 2,000 largest VMware customers, but it is now limiting itself to the top 500.
The strategy change was announced in November without much publicity, reports The Register. The decision appears to be a response to concerns about customer migrations. Although customers have the option to stay with VMware, concerns about price and quality have persisted since its acquisition by Broadcom. These concerns are compounded by licensing changes, which further increase subscription renewal costs. As a result, some customers are considering alternatives to VMware.
Back to channel
To prevent customer migrations, Broadcom is encouraging customers to deploy full private cloud bundles. The goal is to achieve a strong return on investment (ROI). Broadcom hopes to support this strategy by returning 1,500 large customers to partners.
In addition, 15 percent of the deal value will be reserved for channel partners to support them in implementing VMware software. This approach should strengthen collaboration with partners and ensure efficient service delivery.
Broadcom’s moves to gain more control over VMware customers have not been universally well-received within the channel. Yet the change in strategy has also been praised. VMware distributor TD Synnex stressed to The Register that Broadcom is willing to adjust plans quickly based on stakeholder feedback.
According to a spokesperson for TD Synnex, the recent large migrations of VMware customers are not a sign of mass departure. Instead, they see it as a regular occurrence in a tech sector under constant pressure.
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