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It looks a lot like VMware just lost a 24,000-VM customer

theregister.com

11–20 of 151 posts

Re: It looks a lot like VMware just lost a 24,000-VM customer

#12

> he found the IT department using two hypervisors: Nutanix AHV, and ... VMware. The CTO felt two hypervisors was one too many and considered a consolidation Good move, and plenty more like this will happen. But like I've said before, the winners will be Nutanix, Citrix, and other existing enterprise infra vendors - not Proxmox. And companies like Broadcom are fine with that because market segmentation is a thing. (A…

> Also I hate hate HATE The Register's tone

I find the snark refreshing compared to all the corporate drones using their carefully worded lawsuit-proof, passive-voice, non-committal, lawyer-vetted style.

You must work in a very, very sane environment - for most of us this is literally a breath of fresh air.

Re: It looks a lot like VMware just lost a 24,000-VM customer

#13
post #7

> he found the IT department using two hypervisors: Nutanix AHV, and ... VMware. The CTO felt two hypervisors was one too many and considered a consolidation Good move, and plenty more like this will happen. But like I've said before, the winners will be Nutanix, Citrix, and other existing enterprise infra vendors - not Proxmox. And companies like Broadcom are fine with that because market segmentation is a thing. (A…

You hate they're speaking as (very snarky) humans? Corporate speak is better?

They are not snarky and they very gladly work with corporates as well.

Look at all the sponsored content they have from ZTE, as well as all the Nutanix specific articles because of Nutanix .NEXT

Snark is fine if you are evenhanded by being snarky about everyone, but it ain't great if you're clearly picking and choosing and deciding to take money from vendors.

Re: It looks a lot like VMware just lost a 24,000-VM customer

#14
post #12

> he found the IT department using two hypervisors: Nutanix AHV, and ... VMware. The CTO felt two hypervisors was one too many and considered a consolidation Good move, and plenty more like this will happen. But like I've said before, the winners will be Nutanix, Citrix, and other existing enterprise infra vendors - not Proxmox. And companies like Broadcom are fine with that because market segmentation is a thing. (A…

> Also I hate hate HATE The Register's tone I find the snark refreshing compared to all the corporate drones using their carefully worded lawsuit-proof, passive-voice, non-committal, lawyer-vetted style. You must work in a very, very sane environment - for most of us this is literally a breath of fresh air.

As I mentioned below:

They are not snarky and they very gladly work with corporates as well. They are just writing in some weird pissy tone.

Look at all the sponsored content they have from ZTE, as well as all the Nutanix specific articles because of Nutanix .NEXT

Snark is fine if you are evenhanded by being snarky about everyone, but it ain't great if you're clearly picking and choosing and deciding to take money from vendors.

I'd like snark, but I'd rather hear that from an actual practitioner, not one of the several tech "journalists" we'd wine and dine when I was still working for vendors.

Re: It looks a lot like VMware just lost a 24,000-VM customer

#16

> Steve McDowell, chief analyst at NAND research, told The Register that VMware by Broadcom is “laser focused on high-revenue, high-margin business” and has priced its wares “just below the pain threshold for customers they care about.” If you hike your prices by 10-15x, you only need 6-10% of customers to stay to maintain your revenue, reduce costs and massively increase profit margins!

Similar to pmx's point, an implicit assumption in this (which is unlikely to be true in many scenario's) is that the there is a negligible spread in the distribution of revenue per customer. Imagine if you have one whale customer and a bunch of small fish, if you lose the whale in the change you won't maintain the same revenue.

Some scenario's this assumption is reasonable though (say Netflix subscribers).

Re: It looks a lot like VMware just lost a 24,000-VM customer

#17

I admit to not understanding or caring about the full scope of Computershare’s business (side note: that’s a dumbass name), but having been forced to suffer their software when working for a former company, it boggles my mind that they need 24,000 VMWare VMs, in addition to a bunch of Nutanix VMs.

A lot might be staff 'desktops' - some companies run thinclients and run the desktops in VMs. Easier to reinstall them when staff screwup.

Re: It looks a lot like VMware just lost a 24,000-VM customer

#18
post #3

Is Kubevirt stable enough for me to unplug a host and have the VMs fail over to another?

I believe kubevirt just delegates to the under-hypervisor (whatever it is). That being said, default kubernetes waits at least 5 minutes before considering a down host as actually down.

Re: It looks a lot like VMware just lost a 24,000-VM customer

#19
post #5

> Steve McDowell, chief analyst at NAND research, told The Register that VMware by Broadcom is “laser focused on high-revenue, high-margin business” and has priced its wares “just below the pain threshold for customers they care about.” If you hike your prices by 10-15x, you only need 6-10% of customers to stay to maintain your revenue, reduce costs and massively increase profit margins!

This massively increases risk too, right? Pinning all your revenue on a much smaller customer base means losing one or two of them has a huge impact!

Yes, but I guess you get to know the customers better and make sure the product fits them very well, or atleast better than the competitors.

Another more cynical thought is that this is a way of increasing revenue and profit quickly so the share price rises quickly. You get your options and bonus and leave before the rest of the customers leave.

Re: It looks a lot like VMware just lost a 24,000-VM customer

#20
post #5

> Steve McDowell, chief analyst at NAND research, told The Register that VMware by Broadcom is “laser focused on high-revenue, high-margin business” and has priced its wares “just below the pain threshold for customers they care about.” If you hike your prices by 10-15x, you only need 6-10% of customers to stay to maintain your revenue, reduce costs and massively increase profit margins!

This massively increases risk too, right? Pinning all your revenue on a much smaller customer base means losing one or two of them has a huge impact!

I remember my father doing this one. He was an SME support company. With two clients. He cranked the price up 4x and said ”we’ve got them by the balls”. They both opened a tender process and shot him and he was bankrupt 6 months later.
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