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The lock in is strong with their product and they know it. Migrating hypervisors is a long and arduous process for any medium-to-small business, and I speak fro
by ToucanLoucan 2y ago
The lock in is strong with their product and they know it. Migrating hypervisors is a long and arduous process for any medium-to-small business, and I speak from experience: it took our small team about 2 months to move off of VMware about a decade ago, also because the price of support was simply unhinged from our perspective.
They would be fools to not expect high attrition of smaller clients, but big businesses and government customers aren't going to change, or at least not nearly to the tune that smaller ones would, and a smaller pool of larger customers paying a higher price probably works pretty well to keep revenues up while letting them slash support staff without too much of a reduction in quality for those that are left.
It was clear to me from the beginning that this price hike wasn't about cash flow, not particularly. Broadcom doesn't want vmware wasting money supporting small fish.