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VMware outsourcing their support

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21–30 of 65 posts

Re: VMware outsourcing their support

#21
post #15

It is somewhat smart capitalism, drive up the prices extract as much money as possible as fast as you can and when product stops selling write it all off. Executives get their pay checks from options and investors see line go up for short time...

[deleted]

Re: VMware outsourcing their support

#22

Proxmox added VMware VM imports to their product. They must be doing well because of the purchase by Broadcom. Hahaha.

Our VMWare bill went from $66 to $3600 this year (just a dozen VMs). Next year we will be using ProxMox.

100$-200$ per VM is a fair price I think. Most of the revenue generating on-prem orgs can afford it. If you think it is expensive then you are not the target segment for VMware.

Re: VMware outsourcing their support

#24
post #13
post #3

Broadcom must have the most idiotic management from all the large tech companies. Everybody understands you buy a company to recoup the investment, streamline operations and push forward with new markets. But do you have to increase license prices by three times within the first quarter of an acquisition? Drop all free licenses that allowed for learning of your technologies? Even professionals with years of experienc…

The view of Broadcom is that VMWare has low growth potential and the route to maximum short term financial returns is to extract as much money as possible from the largest customers. So the strategy is to squeeze the 600 largest customers until they bleed, knowing they are so entrenched they cannot easily migrate. If the next couple of thousand stuck around as well that would be nice, but not essential. The long tail…

Based on your views and insights you have if feels like you are board member of Broadcom.

Re: VMware outsourcing their support

#25
post #13

Earlier quoted context omitted.

The view of Broadcom is that VMWare has low growth potential and the route to maximum short term financial returns is to extract as much money as possible from the largest customers. So the strategy is to squeeze the 600 largest customers until they bleed, knowing they are so entrenched they cannot easily migrate. If the next couple of thousand stuck around as well that would be nice, but not essential. The long tail…

How do you know this is their view? I don't have any strong opinion or evidence to argue, but I'm curious if this is conjecture or inference or actual knowledge?

It was basically in their investor presentation on the acquisition lol

Re: VMware outsourcing their support

#26

Proxmox added VMware VM imports to their product. They must be doing well because of the purchase by Broadcom. Hahaha.

Our VMWare bill went from $66 to $3600 this year (just a dozen VMs). Next year we will be using ProxMox.

If you are used to and like VMwares toolset you wont like Proxmox.

I would not switch an enterprise from VMWare -> Proxmox without a really thorough analysis of what that will mean.

That said the future of VMware is certainly in question.

Re: VMware outsourcing their support

#28
post #20
post #18

Earlier quoted context omitted.

Unfortunately, an economy is now wholly peopled by shareholders, and the most important shareholders are usually the owners and corporate officers. Software dev who's worked in both tech and finance. I don't measure things in just shareholder returns.

Nor do I, just saying "idiotic" is the wrong pejorative here. He's doing what he's being paid to do and doing it competently and successfully.

[deleted]

Re: VMware outsourcing their support

#29

Earlier quoted context omitted.

Our VMWare bill went from $66 to $3600 this year (just a dozen VMs). Next year we will be using ProxMox.

100$-200$ per VM is a fair price I think. Most of the revenue generating on-prem orgs can afford it. If you think it is expensive then you are not the target segment for VMware.

The fallacy here is that you’re ignoring the pipeline. The next generation of infrastructure admins are either running on all cloud, or running on something they can easily access like any KVM based system (like proxmox). VMware is instantly a legacy system because anyone who doesn’t already run it isn’t going to bother learning it.

Revenue generating or not, the free platforms are will generate more revenue than VMware at such and exorbitant cost.

Re: VMware outsourcing their support

#30
post #20
post #18

Earlier quoted context omitted.

Unfortunately, an economy is now wholly peopled by shareholders, and the most important shareholders are usually the owners and corporate officers. Software dev who's worked in both tech and finance. I don't measure things in just shareholder returns.

Nor do I, just saying "idiotic" is the wrong pejorative here. He's doing what he's being paid to do and doing it competently and successfully.

Don't disagree. I regard Tan as a (powerful) local optimization where the counter argument to broader optimizations is that they're riskier. The latter are though more fundamental. New businesses, new processes, new products are one thing. Profit-taking is another. To get new industries you need far-ranging optimizations.
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