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Broadcom ditches most of VMware's Cloud Service Providers
(www.theregister.com)
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this post was submitted on 11 Jan 2024
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As is the plan.
Broadcom’s whole business model is to buy companies with lots of enterprise customers and high vendor lock in products, cut support, maintenance, R&D as much as possible, and massively jack the price up. Most customers will eventually leave, but they’re counting on sunk cost fallacy and management being slow to go through with a big, risky, and expensive migration to make their money back in the meantime. Anyone who gets stuck with it long term because they would rather pay up than risk moving is just a bonus.
Sure, but with this change it's becoming harder to see the advantage of VMware over hyperV with full lintegration to azure, and azure stack edge. A single interface to manage cloud and on prem that includes monitoring etc.
Sunk cost or not, with this change the companies need to move anyway so the immediate question is why not all the way? but I might be wrong.
My guess is that there arn’t enough big fish using the cloud providers as compared to rolling their own in house, and they did say that the biggest would be invited to a new program. They want to drive off the little fish, because they cause most of the problems and especially the ones using MSP’s like we’re talking about here are going to be the fastest to jump ship to Azure or AWS hosting anyway.
It’s not a sustainable long term plan, but Broadcoms long term plan is to kill VMware entirely so that’s not a concern to them.