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Did Broadcom ever justify price-gouging captive customers after acquiring VMware? ("Sorry, folks, poor banana harvest this year, so we have to pass on the skyr
by neilv 2y ago
Did Broadcom ever justify price-gouging captive customers after acquiring VMware?
("Sorry, folks, poor banana harvest this year, so we have to pass on the skyrocketing cost of bits licensing, which runs on bananas"?)
- rad_gruchalski 2y agoThey spent money on the acquisition and they would like to see some back. Isn’t that obvious?
- toomuchtodo 2y agoThere is a lot of road between "reasonable return on capital invested" and "we are going to rake you over the coals so badly people are going to publicly flee to not be captive to us."
- rad_gruchalski 2y agoWell, it’s Broadcom and they just spent the money so they want some back. It’s like IBM: acquire and rake. Hey IBM employees, it doesn’t matter how upset you get. It is what it is.
- 0xedd 2y ago[dead]
- burnte 2y agoNo one said it wasn't obvious, we're saying spending almost $70bn on a company and announcing that the only way you can make it back is by squeezing 10x more out of the big fish, that might not have been smart.
- rad_gruchalski 2y agoApparently they are known for that so I'm not sure why acting surprised.
- fred_is_fred 2y agoWhy would they need to justify it? Lots of enterprises are captive to VmWare. Their entire IT staff has been using it their whole careers.
- bityard 2y agoThe first thing Broadcom did after acquiring the company was announce that they were going to offload their small customers and increase revenue by raising prices on their big customers. There was lots of warning.
- neilv 2y agoWeren't they saying, Once you are captive to a Broadcom product, Broadcom will have no qualms about totally screwing you with bait&switch huge price jumps? Isn't that an interesting message to be sending, when much of their business involves getting some very price-conscious companies (think electronics bill-of-materials) to build upon their products? Or do customers of other Broadcom products already not trust them an inch? So Broadcom wasn't costing themselves valuable reputation here?
- deleted 2y ago[deleted]
- UltraSane 2y agoWhy would a for-profit company have to justify increasing prices?
- zerd 2y agoBecause when they increase their prices too much, they lose the customers, which loses money. Why would a for-profit company want to lose money?