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This doesn’t surprise me. The customer in this case is in the hosting business. They are likely fairly expert at infrastructure and devops and are operating in
by eigenvalue 2y ago
This doesn’t surprise me. The customer in this case is in the hosting business. They are likely fairly expert at infrastructure and devops and are operating in a super competitive, commoditized, price-sensitive corner of the market. Broadcom probably always expected to churn customers like that. But they knew that for every customer like that, there would be 3 or more Fortune-500 type companies that don’t want to risk any disruption and have big IT budgets that they can divert into covering the increase if they have to. They might even make plans to gradually move away over a few year period, but if they are charging 10x more than before, the profit they make in the next couple years will more than make up for it.