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Seems like a dumb idea for Broadcom; they’re going to keep loosing customers to proxmox and others. Why such a hike?
by azinman2 2y ago
Seems like a dumb idea for Broadcom; they’re going to keep loosing customers to proxmox and others. Why such a hike?
- llm_trw 2y agoExtract as much value as you can from a quickly depreciating asset before you dump it. Makes so much money.
- wkat4242 2y agoThe thing is, this asset wouldn't have depreciated so much if it weren't for broadcom.
- bityard 2y agoDumb or not, getting rid of their smaller customers and jacking up prices for their large customers is exactly what Broadcom said their strategy was going to be immediately after they bought VMware. They are in the execution stage now, it shouldn't come as news to anyone at this point.
- kazinator 2y agoIs AT&T is an example of a smaller customer?
- JoyrexJ9 2y agoNo one said the strategy was working!
- archerx 2y agoThey did the calculations but unfortunately they were not good at math.
- mirekrusin 2y agoOh but they'll pay for couple of years at least.
- betaby 2y agoNo, but neither AT&T migrated yet, or ever.
- wilted-iris 2y agoBroadcom follows the private equity playbook: hike prices and reduce expenses. Customers will leave until only the most locked in remain. This extracts value from the business and makes it more capital efficient. Broadcom will continue to extract value until only a husk remains.
- Ekaros 2y agoAt 300% or 1000% rates you might make more in a few years it takes customer to move than you spend on acquisition. At that point, well you are still getting paid or you roll it out to someone else again and still recover part of cost if tech is still good enough.
- TabTwo 2y agoSqueeze as much money from the customers until their pain is big enough and they migrate away from VMware.
- iJohnDoe 2y agoIt’s a shame that VMware allowed this to happen. Yes, it’s just business, but talk about not giving a fuck about who acquired them and what was going to happen to their product.