back to article Broadcom halves subscription price for VMware's flagship hybrid cloud suite

Broadcom's VMware Cloud Foundation Division has announced what it's described as "a dramatic simplification of our product portfolio," plus the end of perpetual licenses and a move to subscriptions – some at half their previous price. The Cloud Foundation Division is a Broadcom business unit dedicated to VMware's server …

  1. Dimmer Bronze badge

    Just forcing us to go elsewhere.

    “ VMware long ago signaled its intention to move customers to subscription licenses.”

    Yes. That’s when we started to look elsewhere. If you are on prim, best be looking elsewhere too.

    1. Xerebus

      Re: Just forcing us to go elsewhere.

      The problem is there are few if any offerings which are as complete and well integrated as the VMware stack.

      It will be quite a pita to migrate such an important part of the infra as a hypervisor.

      Perhaps a bit less if you haves moved with the times to containerization but it will still be quite a challenge to do.

      1. Anonymous Coward
        Anonymous Coward

        Re: Just forcing us to go elsewhere.

        You can perfectly run K8s on top of switched-base Software Defined Infrastructure. No need for the intermediate virtualisation layer. One less thing to worry about.

        Once mastered, this is a very powerful technology.

    2. 43300 Silver badge

      Re: Just forcing us to go elsewhere.

      Suspect it might drive more companies to cloudy hosting - which wouldn't be to Broadcom's advantage as VMWare isn't a major player in this market.

  2. Anonymous Coward
    Anonymous Coward

    Maybe they will actually make a success of it then. My biggest complaint about vSphere was always that it was priced to sweat the asset.

  3. Anonymous Coward
    Anonymous Coward

    Someone is happy....

    Broadcom stock was as low as $904 last week and hit $1061 today. Investors(*) seem to be happy with Broadcom's business strategy.

    * Investors = People with 401k retirement plans invested in mutual funds, some of which buy growth stocks like AVGO. Or retirees who have switched over to dividend paying stocks like AVGO. You know, regular people like you & me.

    1. Grogan Silver badge

      Re: Someone is happy....

      You're not the one deciding where your mutual fund investments go, and your analysis of the situation is just in-your-face bollocks. The market is always volatile with speculation, see how it equalizes in 6 months when companies say yes or no to subscription licenses. Until then, your smug and condescending opinion is rubbish.

    2. pimppetgaeghsr

      Re: Someone is happy....

      Broadcom is an insanely performant business in the ailing semiconductor industry. Not as flashy as NVIDIA or whatever tech stock is in fashion this quarter, it's a good stock for people that understand finance.

    3. darkrookie28

      Re: Someone is happy....

      Yeah, I don't have any of that.

  4. Mayday
    Devil

    Quote

    "A "trade-in" program that allows holders of perpetual licenses to move to subscription products, with upgrade pricing incentives."

    Cant see this one being super popular.

  5. Equals42

    Half off list price means?

    OK, so the list price is 50% off. What does that mean to everyone really? If you’ve dealt with VMware (or any IT vendor) you know that list is not reality. Big IT shops may get 70% or 90% off list price of some software. So, if it was $1,000,000 list last week and with discounts I was going to have to send a PO for $250k, what is it now? $500k list and only giving out 50% discounts? Same price, eh? Plus the vendor management groups will be peeved that they can’t crow to the CFO about the great discount they negotiated.

    TLDR: I doubt it will be much cheaper in the end.

    1. Crypto Monad Silver badge

      "The price cut to Cloud Foundation subs was unexpected"

      Probably means most people aren't taking the full stack.

      Before: "Cloud Foundation costs 3 times more than we're currently paying! We're not even going to look at that, especially since we won't be using most of the features"

      After: "Cloud Foundation only costs 50% more than we're currently paying. Maybe we should take a look at it and see if we can use some of those features?"

      Once locked into the new license and features, annual rises will get the price back to where it was reasonably quickly.

  6. Anonymous Coward
    Anonymous Coward

    nutanix

    we've moved our relatively large vmware estate (100+ hosts / 1200 vm's) to nutanix

    saved a bundle and was relatively painless

    1. Anonymous Coward
      Anonymous Coward

      Re: nutanix

      Wait until you get your renewal bill from Nutanix in 1 or 3 years. Buckle up.

  7. ElNumbre
    Flame

    Fixed it...

    "This shift is the natural next step in our multi-year strategy to [rinse] customers [when they] consume both our existing offerings and new innovations [whilst increasing the stability of our balance sheet]"

  8. TVU Silver badge

    "Broadcom halves subscription price for VMware's flagship hybrid cloud suite...Also kills perpetual licenses"

    And Lo! The Oracle-style snakery has started and you can surely bet that there'll be above inflation price hikes for the VMware's flagship hybrid cloud suite.

  9. Anonymous Coward
    Anonymous Coward

    Price Cuts?

    "Many VMware customers will see that as a pleasant surprise, given Broadcom's past actions to hike prices after acquiring CA and Symantec."

    Then they're suckers. The whole point of the price cuts is to push people to adopt the subscription licensing willingly. Give it 2-3 years, when enough have converted to subscriptions, the vice will start closing.

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