After Broadcom acquired VMware’s business last year, there have been significant changes, including the discontinuation of perpetual licensing, the end of free ESXi versions, and the termination of the channel partner program. Hock Tan, VMware’s CEO, acknowledges that customers and partners may have concerns about multiple changes happening simultaneously, but assures that it aligns with industry standards. For partners, there will be opportunities to create additional revenue streams.
Tan confirms continued investment in developing VMware, with an additional $1 billion earmarked for innovation. In a recent Broadcom earnings report, Tan mentioned plans to enhance the value proposition for existing vSphere customers by upgrading them to VMware Cloud Foundation, expecting a sales increase of over 10% quarter over quarter throughout this fiscal year. On the user side, some organizations have reported a 5-6 times increase in licensing costs due to mandatory bundling.
TLDR: Following Broadcom’s acquisition, VMware undergoes significant changes, including license discontinuations and channel partner program termination. CEO Hock Tan reassures alignment with industry standards while emphasizing continued investment in innovation.
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