As users report Broadcom massively hikes license costs, consultant advises negotiation tactics used for Oracle or Microsoft will apply
KKR will also inherit a user base perhaps uniquely sensitive to Broadcom's shift to sales of product bundles and per-core licenses, because the EUC portfolio can comfortably run without VMware's wider hybrid cloud stack. Yet Broadcom now only sells bundles of software that include much of that stack.that Broadcom's licensing scheme will see the price of VMware licences increase, and that promised cost-neutrality for those moving from perpetual licenses has not eventuated.
He also warned that Broadcom's strategy"is likely to culminate in the underutilization of software, resulting in resources being expended on unused software." Thaver therefore advised VMware customers to prepare for negotiations with Broadcom well ahead of their license renewals, and recommended"a strategic approach akin to that utilized in negotiations with Microsoft or Oracle."
Many orgs have experience with – and scars from – negotiations with those vendors. Thaver's advice will therefore be welcome as it offers a starting point for considering talks with Broadcom – and a little scary, as Microsoft and Oracle are renowned for seldom flinching. In the case of Oracle, many customers have learned to fear aggressive license audits.
For VMware's EUC customers, those price rises could be intolerable – especially as the likes of AWS, Alibaba Cloud, and Microsoft refine their cloud-hosted desktops. ®VMware takes a swing at Nutanix, Red Hat with KVM conversion toolJapan's second-ranked mobile telco to buy convenience store chain from MitsubishiComment