Telefónica Germany transitioned from VMware support to Spinnaker when Broadcom's renewal quote was five times higher than expected. The telco, primarily operating vSphere on previously purchased perpetual licenses, found that Broadcom's shift to subscription-only bundles, including VMware Cloud Foundation, offered unnecessary products at a much higher cost. Holger Berndt, a key figure in software asset management at Telefónica, expressed discontent over the need to purchase more than what they used and the substantial price increase compared to their previous expenditures of €5 to €8 million over three years.
Our offer from Broadcom was five times higher than we expected. We told them that we don't use all parts of the VCF. They offered us the whole solution, and it was very good, and it's a lot of things that we don't need, that was the main problem.
They told us we are a valued customer, then they offered us a price it was, let me think, five times higher than expected. And that was not acceptable, because we had paid approximately €5 to €8 million over three years already.
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