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Still don’t get what the point is. You can temporarily squeeze the locked in customer for good quarterly numbers but in long run youre just fucking up your busi

by Havoc 2y ago

Still don’t get what the point is. You can temporarily squeeze the locked in customer for good quarterly numbers but in long run youre just fucking up your business permanently

dboreham 2y ago
Not thinking like a psychopath.
rawgabbit 2y ago
Execs meet their target to get their outsized stock options. The Board gets theirs too. The short term investors got theirs too. It is irrelevant that the company is a burning wreck of its former self and customers and employees are saying WTF. This is the reality of Shareholder Primacy. https://en.m.wikipedia.org/wiki/Shareholder_primacy https://en.m.wikipedia.org/wiki/Shareholder_primacy
- winocm 2y ago
  Don't forget: https://en.m.wikipedia.org/wiki/Friedman_doctrine https://en.m.wikipedia.org/wiki/Friedman_doctrine https://www.sciencedirect.com/science/article/pii/0304405X7690026X https://www.sciencedirect.com/science/article/pii/0304405X76...
whynotmaybe 2y ago
What is "long run"? Oracle has been doing this for decades. For some companies, the migration from oracle to anything else would cost too much and hard to justify in some places, especially government. It's the same for VMware, It will takes many years for some government agencies to replace it with something else. I'm guessing Broadcom is going the same way. They can't compete against cloud migrations or open source alternatives. So as you said, they're squeezing locked in customers, the fastest they can until they've all migrated... Or until some decided that keeping it at that price was still a better ROI than migrating. I don't think a lot of people will start a new VMware data center in the years to come.
- bachmeier 2y ago
  > Or until some decided that keeping it at that price was still a better ROI than migrating. And then at the next renewal, when the price goes up 3x, the cost of a one-time migration will look cheap - to the new executive that's in charge at that time.
- jodrellblank 2y ago
  That was Broadcom's plan all along, they weren't buying VMware to compete, they were buying it to wring more than $61Bn from the customers who are stuck. This[1] from 2022 says "Broadcom's stated strategy is very simple: focus on 600 customers who will struggle to change suppliers, reap vastly lower sales and marketing costs by focusing on that small pool, and trim R&D by not thinking about the needs of other customers – who can be let go if necessary without much harm to the bottom line. The Register offers that summary based on Broadcom's own words, as uttered at a November 2021 Investor Day." and "Krause said Broadcom is content to have those 100,000 customers "trail" over time." [1] https://www.theregister.com/2022/05/30/broadcom_strategy_vmware_customer_impact/ https://www.theregister.com/2022/05/30/broadcom_strategy_vmw...

by Havoc 2y ago

Still don’t get what the point is. You can temporarily squeeze the locked in customer for good quarterly numbers but in long run youre just fucking up your business permanently

dboreham 2y ago

Not thinking like a psychopath.

rawgabbit 2y ago

Execs meet their target to get their outsized stock options. The Board gets theirs too. The short term investors got theirs too. It is irrelevant that the company is a burning wreck of its former self and customers and employees are saying WTF. This is the reality of Shareholder Primacy. https://en.m.wikipedia.org/wiki/Shareholder_primacy https://en.m.wikipedia.org/wiki/Shareholder_primacy

winocm 2y ago
Don't forget: https://en.m.wikipedia.org/wiki/Friedman_doctrine https://en.m.wikipedia.org/wiki/Friedman_doctrine https://www.sciencedirect.com/science/article/pii/0304405X7690026X https://www.sciencedirect.com/science/article/pii/0304405X76...

whynotmaybe 2y ago

What is "long run"? Oracle has been doing this for decades. For some companies, the migration from oracle to anything else would cost too much and hard to justify in some places, especially government. It's the same for VMware, It will takes many years for some government agencies to replace it with something else. I'm guessing Broadcom is going the same way. They can't compete against cloud migrations or open source alternatives. So as you said, they're squeezing locked in customers, the fastest they can until they've all migrated... Or until some decided that keeping it at that price was still a better ROI than migrating. I don't think a lot of people will start a new VMware data center in the years to come.

bachmeier 2y ago
> Or until some decided that keeping it at that price was still a better ROI than migrating. And then at the next renewal, when the price goes up 3x, the cost of a one-time migration will look cheap - to the new executive that's in charge at that time.
jodrellblank 2y ago
That was Broadcom's plan all along, they weren't buying VMware to compete, they were buying it to wring more than $61Bn from the customers who are stuck. This[1] from 2022 says "Broadcom's stated strategy is very simple: focus on 600 customers who will struggle to change suppliers, reap vastly lower sales and marketing costs by focusing on that small pool, and trim R&D by not thinking about the needs of other customers – who can be let go if necessary without much harm to the bottom line. The Register offers that summary based on Broadcom's own words, as uttered at a November 2021 Investor Day." and "Krause said Broadcom is content to have those 100,000 customers "trail" over time." [1] https://www.theregister.com/2022/05/30/broadcom_strategy_vmware_customer_impact/ https://www.theregister.com/2022/05/30/broadcom_strategy_vmw...