What's next with VMware and Broadcom?
Transcript
VMware broadcom you know I haven't talked about this in a while and I think we have enough space that we know what this is at least we can predict where this is going to go broadcom is focusing on the biggest part of this Revenue Source whether we're talking Partners cloud service providers customers the focus is on core products vmw Cloud Foundation put putting products into VW Cloud Foundation Arya and having those relationships tightly controlled the better broadcom can tightly control these relationships the more they can
control their profit this acquisition was about eida the ability to get more profit out of VMware VMware was already an extremely profitable company so we knew that the change were going to be disruptive now that we know that it's disruptive the VMware has you know gone in a different direction with Arya this observability network monitoring SL automation solution it's brought that into the VCF product and you have to run that on private infrastructure instead of running that in the VMware SAS offering that's a drastic change
it's a drastic change in Direction VMware is going kind of uh anti- pattern to the rest of the industry while the rest of the industry is trying to put the control plane in the cloud and focus on Services VMware is focusing on licensing making sure that it pushes the cost down to the customer for infrastructure reducing the overall subscription cost to mitigate some of that cost but uh it is a different direction and I think customers are reacting top customers you know they're that I've talked
to Big service providers I've talked to big companies they are staying the course with VMware because the switching costs are too great this is exactly how hoton planned it out that uh customers will Grumble and complain but they'll pay the cost because what do you do when you're a big customer the question for smaller customers becomes more interesting they are not as locked in the switching costs aren't as much new tanic has an offering scale compute has a offering you have open source you have Microsoft
uh virtualization hyperv virtualization there are options for the lower end the market painful switching cost de but still achievable we're starting to see vmw partners ERS uh be a little bit more aggressive with how they will support the switching of components companies like VH that's all in on VMware talk about supporting proxmox I don't take proxmox seriously as a alternative to VMware but I think the point remains that ecosystem isvs who have partnered up to VMware in the past are willing to uh cater to the
smaller companies a company like VH is a great example where they get a little bit of money from a lot of customers so if the down Market is moving towards Alternatives then VH has to be ready to support those Alternatives I'm interested to know what long-term Partners such as HP Dell Lenovo Cisco do from a helping kind of this smaller customer understand the risk and path ahead had with vmw broadcom I'd like to know what you think is this all about nothing and customers will just
you know continue to stay the course with VMware or across the board or is this a forcing factor is this something that will force especially smaller companies to re-evaluate their approach to on premises virtualization either move to the public Cloud move to Alternatives or move to SAS comment hello talk to you soon
