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

theregister.com

1–10 of 151 posts

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

#2
> 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.

(Also I hate hate HATE The Register's tone - so happy I'm not a PMM who has to wine and dine them at RSA or Re:Inforce.

The moment RSA and these holdover 90s blog cartels like Register and DarkReading die, discourse in the space can become so much better.

Practitioner lead conferences like Bsides and practitioner blogs are superior to these kinds of rags that are written in conjunction with vendors)

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

#4
> 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!

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

#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!

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

#6

> 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!

A lot less sales and cuatomer support people

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

#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?

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

#8
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!

Also pretty much guarantees flight of your former customer base to close compliments - who then have improved revenue to bring their products closer in alignment to yours. You'd better have a hell of a moat to follow this strategy.

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

#9
post #6

> 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!

A lot less sales and cuatomer support people

except that customers that pay 10x have different expectations. They will have a dedicated account manager, SLA's with very short response times, etc

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

#10
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.
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