Another day, another VMware controversy—courtesy of Broadcom—as the company is making it clear it has no interest in small and medium-sized customers.
According to System Administration, VMware has set a 72-core minimum purchase threshold for all new licenses, as well as all license renewals. In contrast, the company previously allowed companies to purchase licenses on a per socket basis, giving small and medium-sized companies an easy way to purchase what they needed and scale for their growth.
To make matters worse, not only will many customers be forced to pay for cores they don’t need, but the company is adding a 20% penalty for customers who renew late, adding additional pressure to the decision-making process.
Needless to say, the move is causing outrage among small and medium-sized businesses.
“Broadcom has made it crystal clear that smaller customers are no longer part of their strategy,” David Carrero, co-founder of European cloud firm Stackscale, told System Administration. “At Stackscale, we are actively encouraging customers to consider Proxmox as a real, robust alternative to VMware — an open-source platform that respects flexibility and customer choice.”
As the outlet points out, Proxmox is benefiting from Broadcom/VMware’s continual missteps, thanks to its open-source nature and reasonable pricing model.
“Proxmox lets businesses scale as needed, without arbitrary restrictions or licensing surprises,” Carrero added. “We already work with several partners and clients who have begun migrating away from VMware, tired of Broadcom’s heavy-handed tactics.”
Broadcom Continues to Alienate Customers
Since Broadcom’s acquisition of VMware, the company has made one change after another that has alienated existing customers, including massive price increases. AT&T sued Broadcom over breach of contract, alleging the company tried to increase prices by as much as 1,050% and was refusing to honor existing contract extensions AT&T was entitled to. Beeks Group similarly migrated away from the platform after a 10x price increase.
Distribution partners, including Ingram Micro, have also been abandoning VMware after Broadcom tried to offload L1/L2 support to those partners, resulting in distribution partners being suddenly overwhelmed with a support workload they were not prepared for.
In the months leading up to the acquisition, VMware employees and customers expressed concern about how Broadcom would manage the company, especially given Broadcom’s reputation for ruthlessly squeezing profits out of its various divisions. The more time goes by, the more valid those concerns are proving to be.
from WebProNews https://ift.tt/ht8xcoe
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