31–40 of 134 posts
Cant wait to watch VMware die a slow death
Is there that much negativity towards VMWare? I got the impression they were generally liked by users? Still enterprise software, but good stuff, and not awful about their licencing like some other companies?
Earlier quoted context omitted.
This is how I know you haven't been on an enterprise account team. The strategy you described has no upside for the vendor (in this case Broadcom VMWare).
> The strategy you described has no upside for the vendor (in this case Broadcom VMWare). It has. Product/brand trust matters ... the most obvious example being Google, who have had an extremely hard time getting their stuff to be actually used as they have shown time and time again that even if you're the biggest game publishers on this rock, you won't be able to rely on Google keeping up their end of any deal.
At Enterprise SaaS level it does not.
You do not have an individual purchaser - the deal will be vetted by committee for 1-3 quarters.
> most obvious example being Google, who have had an extremely hard time getting their stuff to be actually used
Extremely hard disagree. GCP does well in enterprise/strategic accounts where a customer in some way competes with Amazon (which is around 20-30% of the F1000) and also doesn't have a significant Windows presence (minimizing the need for Azure+MS Support)
Earlier quoted context omitted.
This is how I know you haven't been on an enterprise account team. The strategy you described has no upside for the vendor (in this case Broadcom VMWare).
> The strategy you described has no upside for the vendor (in this case Broadcom VMWare). The upside is you don't scare off other customers when they hear reports of a 12x price increase. Right now, in response to this post, VMWare's biggest customers will be drawing up plans for if they need to walk away at the next contract renewal. And they'll want those plans to be extremely credible - it's worth spending $5 mill…
If this scares away customers spending less than that, good for them. It doesn't make a dent when a F1000 is spending tens of millions a year on VMware and purchase by committee and will get sweetheart deals by being strategic accounts.
Cant wait to watch VMware die a slow death
Is there that much negativity towards VMWare? I got the impression they were generally liked by users? Still enterprise software, but good stuff, and not awful about their licencing like some other companies?
This will be a shift for on-prem deployments. For cloud solutions running VMware in AWS/Azure, unless those renewals go up significantly, most of VMwares mrr is already locked in and the people running these setups generally refuse to learn how the cloud works so it’s a pure lift and shift mentality.
But the pattern begins, broadcom buys VMware does nothing increase prices. Why would any sane client stay around to get VC squeezed.
This is basically a polite way to fire a customer. You don't want to sell to everyone - you need to make sure the cost of retention+support is significantly less than what they are paying. If a customer is too troublesome or spending too little (for a company like VMWare, a $8m contract is on the smaller end) this is the politest way to fire them. It sounds like this customer is a legal firm, which makes sense - they…
It is the most shitty (and stupid) way possible to act though. Old price x 12 is not in good faith. Contracts are based on good faith. Give them a rationale, give them a deadline 24 months hence and a fair price increase. Dare to say no to individual customers. Any customer should now start planning for the end of their Broadcom VMWare-contract. If they do not act in good faith to a random customer, why would they to…
Earlier quoted context omitted.
It is the most shitty (and stupid) way possible to act though. Old price x 12 is not in good faith. Contracts are based on good faith. Give them a rationale, give them a deadline 24 months hence and a fair price increase. Dare to say no to individual customers. Any customer should now start planning for the end of their Broadcom VMWare-contract. If they do not act in good faith to a random customer, why would they to…
What's not good faith about this? "Your custom won't work for us unless we get 100M" Chances are this is not actually surprising for this customer. There's probably been a lot of talk between the sides, a lot of expectations that weren't met both ways. What you're describing at your own company seems to be that same thing, no? Relationship wasn't going well, and it's gotta end somehow. Now that's not to say this shou…
> Just emailed the CEO of Broadcom and got his OoO: “Thank you for your email. The exorbitant price increases are due to inflation and macroeconomic conditions. Also, the taxes on my mansion in Cabo are sky high!”
Not that VMWare customers aren't faced with challenging circumstances...
This is basically a polite way to fire a customer. You don't want to sell to everyone - you need to make sure the cost of retention+support is significantly less than what they are paying. If a customer is too troublesome or spending too little (for a company like VMWare, a $8m contract is on the smaller end) this is the politest way to fire them. It sounds like this customer is a legal firm, which makes sense - they…
> This is basically a polite way to fire a customer.
I'll throw out that raising the price like this is also a strategy to increase profit. In the absence of a source for your claim, I'll go with that instead.
> Is that $8m worth it if in aggregate you spending an equal amount of time on that account as you are on a $20-30m account?
If that's how these decisions are made, the person making them needs to be fired, and fast. They should have considered that they could handle both accounts. Increasing the number of customers is called expansion.
Earlier quoted context omitted.
It is the most shitty (and stupid) way possible to act though. Old price x 12 is not in good faith. Contracts are based on good faith. Give them a rationale, give them a deadline 24 months hence and a fair price increase. Dare to say no to individual customers. Any customer should now start planning for the end of their Broadcom VMWare-contract. If they do not act in good faith to a random customer, why would they to…
Wait, IANAL, but... If contracts were based on good faith, why do you actually need contracts? I highly doubt what you wrote. To put too much trust/faith in a bussiness partner seems like a good way to kill your bussiness.
The market at work, why the rage? They paid, didn't they?