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Will Broadcom Make VMware More Expensive? Five Players Weigh In
O’Ryan Johnson
VMware partners are confronting customers fears about future pricing under Broadcom with early renewals, exploring rivals, and leaning into the partner’s services.
VMware CEO Raghu Raghuram
“Do an early renewal”
For customers that are worried that Broadcom will come in and raise prices post-close, there’s plenty of time. There are customers who have said, I want to come in and do an early engagement with VMware, do an early renewal, and we are doing that all day long.
For the partners, you have to be aware of that. If customers express a high degree of uncertainty and say, ‘What is VMware going to do?’ Introduce certainty (by offering early renewal).
There is an interoperability covenant that says for deals above a certain dollar figure, Broadcom has to approve. Since the first couple of weeks, since the deal was announced, it has run perfectly smooth. It costs us an extra day or so in those cases because there is a regular process between the Broadcom and us for to approve under the operating covenant.
We are completely approachable. We are here for you anytime you need help with a customer. If you are seeing friction with any sort of orders going through, quotes going through, etc. Its got nothing to do with Broadcom. It’s got more to do with VMware’s process. We introduced some new programs in the second half and we had some teething issues with getting codes through this new process, and approving everything rapidly.
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