Can confirm a current Broadcom VMware customer went from $8M renewal to $100M

Post by nunez » Tue, Feb 27, 2024, 3:31 AM UTC

alephnerd wrote: post #116

nunez wrote: post #115

Earlier quoted context omitted.

How do you mean? Signing up on aws.amazon.com and providing your card is a direct sale.

Direct Sales means there is personnel (inbound or outbound) selling directly to the customer on behalf of the Vendor. If you sign up to AWS on your own credit card, there was no inbound or outbound sales motion at all. AWS's self service motion is extremely efficient for lower tier customers (as the upside is basically infinite as you basically spend $0 to generate N dollars). Traditionally, companies like VMWare did…

Post by Rastonbury » Tue, Feb 27, 2024, 12:14 PM UTC

alephnerd wrote: post #109

Rastonbury wrote: post #105

Earlier quoted context omitted.

I work in enterprise saas as well and I can't imagine how bad this customer must be that they can break pricing unless VMware runs really low margins vs the industry. There must be other things as well 8m is 0.6% of their revenue, and they grew in revenue 4% from 2022 to 2023[1]. Losing 0.5% kinda hurts when they are growing that slowly. That 8m can't be that easily magicked out of existing customers or the freed up…

> There must be other things as well My hunch is an Account Team gave a heavily discounted deal to land an upper market customer in order to meet quarterly commitments or get a nice commission. The customer ended up accepting the $100M price-point as well ( https://twitter.com/cioontherun/status/1761882689886433742 ), so they were clearly mis-tiered. If you can afford (what I assume is) a multi-year contract with a 9…