4 ms·

That's not sales it's extortion

xbmcuser 2y ago
VMware was taken over by a company whose business model is extortion. Ie take over a company with customer that have few or little alternatives then keep jacking up prices as high as they can.
malux85 2y ago
No it’s “vendor lock-in” Wait no you’re right, they are practically synonyms.
bhouston 2y ago
For the sales guys involved it looked like a massive payday for him, one he could brag about for years.
- luma 2y ago
  The guy's name is "Hock Tan", it goes all the way to the top. Greedy billionaire trying to squeeze the entire on-prem datacenter industry. Every single one of my VMware customers is either in the process of migrating off or developing the plan to do so. At least one of them would be in Broadcom's list of 600 key accounts that Broadcom thought they could turn the screws on. They somehow seem to have forgotten that MS had just bought a chunk of that org and instead of paying VMware, they are now exiting a few dozen datacenters to move everything to the cloud. This org was highly cloud-resistant (for a handful of good reasons), but VMware forced their hand at exactly the wrong time. I believe this course of action for VMware is going to be taught in business schools in the future.
  - belter 2y ago
    The story is even worst than this. You can find an interview from him on YouTube post acquisition of VMWare. A business reporter naively ask him what is his strategy for the acquisition. The answer just shows there was no strategy, just, and I am paraphrasing: "I spent all this money has to be for something"
  - cryptonector 2y ago
    Do any business schools teach about business school fads and how often they don't work out?
    - bigfatkitten 2y ago
      I hope so. My first lecture in project management subject about how the majority of IT projects (using the very methodologies taught in that class) fail.
tgv 2y ago
The company I work for experienced this. The SaaS solution we depended on suddenly got very pricey. New pricing model and all. The sales reps were completely inflexible. It got so uncomfortable that I got to develop a replacement. When we were (gradually) moving over, they lost interest and let us off with a mild increase, and from this year on, we won’t be needing them at all.
- cryptonector 2y ago
  Buy, or build? Build -> opportunity cost, ongoing cost, legacy Buy -> upfront cost, integrate, ongoing cost, and maybe eventually extortion leading you to Build a replacement. This leads to many different implementations of roughly the same concepts all over, which sucks. Or open source, if it already exists. Or both. Not that open source doesn't have integration costs. But think of this from an executive's perspective. Building really sucks. But buying sucks more in the future. You might just buy. I've seen all of these. My preference is to grudgingly build if suitable open source doesn't already exist.

VMware was taken over by a company whose business model is extortion. Ie take over a company with customer that have few or little alternatives then keep jacking up prices as high as they can.

malux85 2y ago

No it’s “vendor lock-in” Wait no you’re right, they are practically synonyms.

bhouston 2y ago

For the sales guys involved it looked like a massive payday for him, one he could brag about for years.

luma 2y ago
The guy's name is "Hock Tan", it goes all the way to the top. Greedy billionaire trying to squeeze the entire on-prem datacenter industry. Every single one of my VMware customers is either in the process of migrating off or developing the plan to do so. At least one of them would be in Broadcom's list of 600 key accounts that Broadcom thought they could turn the screws on. They somehow seem to have forgotten that MS had just bought a chunk of that org and instead of paying VMware, they are now exiting a few dozen datacenters to move everything to the cloud. This org was highly cloud-resistant (for a handful of good reasons), but VMware forced their hand at exactly the wrong time. I believe this course of action for VMware is going to be taught in business schools in the future.
- belter 2y ago
  The story is even worst than this. You can find an interview from him on YouTube post acquisition of VMWare. A business reporter naively ask him what is his strategy for the acquisition. The answer just shows there was no strategy, just, and I am paraphrasing: "I spent all this money has to be for something"
- cryptonector 2y ago
  Do any business schools teach about business school fads and how often they don't work out?
  - bigfatkitten 2y ago
    I hope so. My first lecture in project management subject about how the majority of IT projects (using the very methodologies taught in that class) fail.

tgv 2y ago

The company I work for experienced this. The SaaS solution we depended on suddenly got very pricey. New pricing model and all. The sales reps were completely inflexible. It got so uncomfortable that I got to develop a replacement. When we were (gradually) moving over, they lost interest and let us off with a mild increase, and from this year on, we won’t be needing them at all.

cryptonector 2y ago
Buy, or build? Build -> opportunity cost, ongoing cost, legacy Buy -> upfront cost, integrate, ongoing cost, and maybe eventually extortion leading you to Build a replacement. This leads to many different implementations of roughly the same concepts all over, which sucks. Or open source, if it already exists. Or both. Not that open source doesn't have integration costs. But think of this from an executive's perspective. Building really sucks. But buying sucks more in the future. You might just buy. I've seen all of these. My preference is to grudgingly build if suitable open source doesn't already exist.