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It's a solid strategy: Ask for 5x money from the 25% of customers who can't make the jump. End up making more money you made in the past, lose 75% of the suppor

by nikanj 2y ago

It's a solid strategy: Ask for 5x money from the 25% of customers who can't make the jump. End up making more money you made in the past, lose 75% of the support burden

m_eiman 2y ago
The only downside is that you'll never get any new customers, and your product will wither and die.
- nikanj 2y ago
  That's a problem for the next quarter!
  - Rinzler89 2y ago
    For the next CEO
- jitl 2y ago
  VMware & on-prem is dying anyways, there’s not much opportunity to turn that one around.
re-thc 2y ago
This assumes the 25% won't also end up going - just a bit later.
gtirloni 2y ago
the fact that everyone is saying "stay away from VMware products" is just a bonus, I suppose :)
throw0101c 2y ago
> It's a solid strategy Except for the situations when it loses you a customer: * https://www.theregister.com/2024/05/22/computershare_vm_migration_project/ https://www.theregister.com/2024/05/22/computershare_vm_migr... * https://news.ycombinator.com/item?id=40452260 https://news.ycombinator.com/item?id=40452260
- WJW 2y ago
  I think you missed the part of the strategy where losing 75% of customers is actually part of the plan.
  - throw0101c 2y ago
    > I think you missed the part of the strategy where losing 75% of customers is actually part of the plan. Yes, but they want that 75% to be a particular type of customer, i.e., all the small ones. I'm not sure if a 14,000 employee, 24,000-VM customer would be considered "small": * https://en.wikipedia.org/wiki/Computershare https://en.wikipedia.org/wiki/Computershare
whynotmaybe 2y ago
It's called "the Oracle way".
andybak 2y ago
Isn't this entire article attempting to explain why that strategy isn't working in this instance?
sofixa 2y ago
That's making the wrong assumption that those 25% of customers will just sit idly by. Their migration away won't be easy, but you can bet that all of them have been at least thinking if not acting on contingencies since the acquisition was first announced. They might do the initial renewals, but within a year or two most of them will start moving away and making their VMware estates smaller, for reduced costs and also vastly improved quality for everyone involved. Once the cat is out of the bag (Broadcom forcing them to rethink their strategy), very few will remain - there are so many better options than VMware out there.

by nikanj 2y ago

It's a solid strategy: Ask for 5x money from the 25% of customers who can't make the jump. End up making more money you made in the past, lose 75% of the support burden

m_eiman 2y ago

The only downside is that you'll never get any new customers, and your product will wither and die.

nikanj 2y ago
That's a problem for the next quarter!
- Rinzler89 2y ago
  For the next CEO
jitl 2y ago
VMware & on-prem is dying anyways, there’s not much opportunity to turn that one around.

re-thc 2y ago

This assumes the 25% won't also end up going - just a bit later.

gtirloni 2y ago

the fact that everyone is saying "stay away from VMware products" is just a bonus, I suppose :)

throw0101c 2y ago

> It's a solid strategy Except for the situations when it loses you a customer: * https://www.theregister.com/2024/05/22/computershare_vm_migration_project/ https://www.theregister.com/2024/05/22/computershare_vm_migr... * https://news.ycombinator.com/item?id=40452260 https://news.ycombinator.com/item?id=40452260

WJW 2y ago
I think you missed the part of the strategy where losing 75% of customers is actually part of the plan.
- throw0101c 2y ago
  > I think you missed the part of the strategy where losing 75% of customers is actually part of the plan. Yes, but they want that 75% to be a particular type of customer, i.e., all the small ones. I'm not sure if a 14,000 employee, 24,000-VM customer would be considered "small": * https://en.wikipedia.org/wiki/Computershare https://en.wikipedia.org/wiki/Computershare

whynotmaybe 2y ago

It's called "the Oracle way".

andybak 2y ago

Isn't this entire article attempting to explain why that strategy isn't working in this instance?

sofixa 2y ago

That's making the wrong assumption that those 25% of customers will just sit idly by. Their migration away won't be easy, but you can bet that all of them have been at least thinking if not acting on contingencies since the acquisition was first announced. They might do the initial renewals, but within a year or two most of them will start moving away and making their VMware estates smaller, for reduced costs and also vastly improved quality for everyone involved. Once the cat is out of the bag (Broadcom forcing them to rethink their strategy), very few will remain - there are so many better options than VMware out there.