this post was submitted on 15 Sep 2023
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I remember at the time that a presentation circulated on a previous Broadcom acquisition, as a preview of what was in store for vmware. I never saw analagous material for vmware exactly, and I can't remember what Broadcom acquisition it was.
Their analysis was that they predicted their changes would kill off any new business, and kill off 80% of the existing customer base. However, this was fine as the other 20% was so stuck that they could charge more than 5x to make up for it, and all without spending any money on R&D and reducing customer support load.
While I know nothing of the numbers... This was my understanding of it as well. That they'd make probably just as much if not more money because of the captive groups.
However, while they might be captive now... Doesn't mean they'll be captive forever. VMWare is going to lose the entire market over this very rapidly, then the rest slowly after.
Indeed. However all the key people making this call will have made a few million off the husk on the way down, and will have moved on to drain the next company.