Earlier this year, Broadcom had plans to directly serve the 2,000 largest VMware customers, but it is now limiting itself to the top 500. This strategy shift was announced in November, seemingly in response to rising customer concerns about potential migrations, especially given the maintenance challenges and licensing cost increases stemming from Broadcom's acquisition of VMware. Customers are now increasingly weighing alternative options due to these factors.
Broadcom is proactively trying to retain its VMware customers by promoting the deployment of full private cloud bundles aimed at achieving a strong return on investment. To facilitate this, the company intends to return 1,500 large customers back to partner channels, while also reserving 15 percent of deal value for these channel partners. This multifaceted approach seeks to enhance service delivery and collaboration within the channel.
Despite mixed reactions within the channel regarding Broadcom's strategies to manage VMware customers, VMware distributor TD Synnex highlighted the company's willingness to adapt quickly based on feedback from stakeholders. They noted the current migration trends among VMware customers aren't indicative of mass departures but rather a common scenario in the ever-evolving tech landscape.
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