Live data from Hacker News

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

twitter.com

1–10 of 134 posts

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

#7
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 tend to have a much smaller IT footprint.

Every dollar isn't the same.

Edit: to elaborate - it's all about margins. 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? It ain't

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

#8

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…

$8m doesn't cover retention (what retention?) and support? Not sure that makes sense.

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

#9

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…

Is $8m small for a VMware contract? Surely if you’re big enough at some point it becomes cheaper to put something together in house - surely this point is far before spending $100m a year?
Post reply on HN