back to article Broadcom CEO promises $2 billion annual boost to make VMware better at the things it already does

Broadcom CEO Hock Tan has promised his planned acquisition of VMware will come with an annual incresae in spending of $2 billion, to acclerate work on Virtzilla's products and improve its services capabilities. "VMware has an amazing opportunity to further grow and scale its pioneering virtualization technology, and Broadcom …

  1. sarusa Silver badge

    Sure, sure...

    Of course they're going to jack VMWare prices by at least $20B a year. They paid $60B for it, and jacking costs and laying off huge amounts of people are what Broadcom does when it acquires another company.

    1. Anonymous Coward
      Anonymous Coward

      Re: Sure, sure... "Reducing costs" is what typically happens with any acquisition. Consolidation of accounting, marketing, HR, etc are all common areas.

      1. sarusa Silver badge

        Re: Sure, sure...

        Broadcom reduces /their/ costs and substantially raises /customer/ costs when acquiring. So they're going to lay off a ton of people at vmware (more than usual even for an acquisition, if they're operating as normal), then they're going to substantially increase vmware prices so they're making ~$10B more a year, then they're supposedly going to put $2B into vmware to make it 'better'.

        Bottom line: This is going to be terrible for existing vmware customers.

    2. hoola Silver badge

      Re: Sure, sure...

      Maybe they should start to look at the ridiculous footprint all the management stuff needs.

      Then look at integrating stuff so that it is not a shambolic collection of different acquisitions loosely stuck together.

      VMware was an excellent product but in the desire to try and justify their huge costs against free alternatives it has adopted the same traits as Microsoft has for Windows and Office.

      Many organisations stick with it using 10% of the features they pay for simply because it is the way things have always been done. Virtualisation specialists will argue about the need for all the features even though they never use most of them.

      The motivation to migrate is low unless it is into "the cloud".

  2. andrewmm

    Everything paid for

    This says it all

    "to better unlock customer value "

  3. Nid0

    Would this be considered a forward looking statement for investors? I wonder if he can be dragged into court by SEC like Elon for false claims

  4. johnnyblaze

    Not good

    What he actually meant to say was "Buying VMware is an amazing opportunity for us to milk customers till the bleed by switching to a subscription only model that will increase the customer costs considerably, and allow us to show our shareholders where $60B went"

    This is why we're actively evaluating ProxMox for some specific virtual workloads.

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