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VMware migration reduces Tottenham Hotspur's licensing fees by 85 percent

arstechnica.com

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Re: VMware migration reduces Tottenham Hotspur's licensing fees by 85 percent

#12

There is a 100% chance that someone in Broadcom exec team is making money shorting themselves. Or else some insider assurance that they'd get so much money from government or some big customer that they could run their products into the ground no matter what. But enterprises are not as locked in as people think.

I didn't realize how addicted some orgs were to VMWare until Broadcom bought them and I witnessed zero people migrate to alternatives. It's been one of the single biggest shocks to me in my career. Watching them get squeezed openly and ruthlessly and just accepting it. I've only ever seen Microsoft pull that off before.

Re: VMware migration reduces Tottenham Hotspur's licensing fees by 85 percent

#14
> The soccer organization confirmed this week to The Register that it has moved its stadium’s server, storage, and networking infrastructure to HPE solutions delivered through HPE’s hybrid cloud management platform, GreenLake.

This is just a much worse version of AWS. Obsession with maintaining some degree of physical control over infrastructure drives many organizations to absolute insanity. Skip the hybrid nonsense. Find a CTO with some balls.

Re: VMware migration reduces Tottenham Hotspur's licensing fees by 85 percent

#15
post #6

There is a 100% chance that someone in Broadcom exec team is making money shorting themselves. Or else some insider assurance that they'd get so much money from government or some big customer that they could run their products into the ground no matter what. But enterprises are not as locked in as people think.

Broadcom has absolutely zero interest in the long-term future of VMware. Their only goal is to squeeze as much money out of it as possible before it goes bust. Let's say that VMware had a $10B revenue with a $9B operating cost. If 0.1% of their megacorp customers is responsible for 20% of that revenue while only being 1% of the support needs, then ditching the other 99.9% of customers reduces revenue to $2B while the…

Unlike Hock Tan, you forgot to raise the prices 5-10x. Then your 0.1% of customers generating 20% of your revenue turn into 0.1% of your customers generating the same amount of revenue as 100% of customers were before with lower operating costs and thus higher margins.

Re: VMware migration reduces Tottenham Hotspur's licensing fees by 85 percent

#17
post #12

There is a 100% chance that someone in Broadcom exec team is making money shorting themselves. Or else some insider assurance that they'd get so much money from government or some big customer that they could run their products into the ground no matter what. But enterprises are not as locked in as people think.

I didn't realize how addicted some orgs were to VMWare until Broadcom bought them and I witnessed zero people migrate to alternatives. It's been one of the single biggest shocks to me in my career. Watching them get squeezed openly and ruthlessly and just accepting it. I've only ever seen Microsoft pull that off before.

I guess that means that VMWare are very skilled in calculating exactly how much they can hike the price / squeeze. Same with oracle, and all the other vendors that play this game.

It kind of makes sense, if you're using VMWare, your choice is to pay a ridiculous but fixed/certain sum, or embark on a risky migration project that probably involves hiring a bunch of people, could take longer than expected, might fail, etc.

Re: VMware migration reduces Tottenham Hotspur's licensing fees by 85 percent

#19
Tesco, a large supermarket chain (also in the UK), is also moving away from VMware: https://arstechnica.com/information-technology/2026/06/tesco...

I'm assuming they're paying much more than a football club.

There's also a legal side in this case because they're actually suing Broadcom: "Tesco claimed Broadcom hiked its VMware prices by about 175 percent in UK court filings."

Re: VMware migration reduces Tottenham Hotspur's licensing fees by 85 percent

#20
post #14

> The soccer organization confirmed this week to The Register that it has moved its stadium’s server, storage, and networking infrastructure to HPE solutions delivered through HPE’s hybrid cloud management platform, GreenLake. This is just a much worse version of AWS. Obsession with maintaining some degree of physical control over infrastructure drives many organizations to absolute insanity. Skip the hybrid nonsense…

Takes real balls to go with AWS huh?
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