In November 2023, Broadcom's $69 billion acquisition of VMware marked a significant shift in the technology landscape, reshaping IT and cloud computing. This move heralds a new era for Broadcom, embracing subscription-based and hybrid cloud services, reflecting wider industry trends towards flexible architectures.
A recent interview between The Register and Mark Boost, CEO and Co-Founder of Civo, dove into how Broadcom's strategy seems to be one of tossing most VMware clients to the wind while trying to retain the largest in a bid to drum up profits.
Speaking more about this ongoing problem, Mark Boost said:
"It was very clear … that the focus was on just 600 accounts, I believe. And there were another 6,000 customers mentioned that they want to sustain… It was mentioned specifically that a hundred thousand customers would trail off over time... We've seen as much as 10x price increases that people have told us about… Typically we're hearing them from people that are saying, you know, anything from three to five [x higher pricing] on average."
If you’re interested in learning more about this topic, check out The Register article and words from our CEO Mark Boost, here.