CEO Hock Tan Addresses Broadcom-VMware Questions ‘Head On’

In a new blog, Tan tackles controversies around innovation, cloud, subscription licensing and the channel. And then we have some breaking insight into cloud service provider pricing.

Kelly Teal, Contributing Editor

April 15, 2024

5 Slides

Hock Tan is out to “address … questions head on” around Broadcom-VMware — specifically, Broadcom’s treatment of VMware, from innovation and pricing to subscriptions and channel partners.

On Monday, the CEO of chipmaker Broadcom, which closed its behemoth VMware purchase late last year, issued a new blog. It follows last month’s missive assessing VMware’s first 100 days as a Broadcom company. This time, Tan seems to have put aside some of the rose-colored glasses and tackled some thorny questions about Broadcom-VMware in a more straightforward manner.

He started by explaining the context for the seachanges Broadcom has brought about within VMware. Even before Broadcom closed the VMware purchase, Tan and his team were in talks with VMware customers, he said. And what he uncovered led to the decisions Broadcom has made.

“Early in this process, I concluded that the previous go-to-market model was too complex and costly for VMware and its customers,” said Tan, who Channel Futures recognized as its Channel Influencer of the Year earlier in 2024. “It demonstrated that all too often, as innovative companies expand, decisions are made incrementally, not holistically as part of a larger, comprehensive strategy.”

That observation sets the stage for the ways in which Broadcom has acted since closing the VMware acquisition.

Related:VMware by Broadcom Revamps VCSP, Adds Option for Small Cloud Providers

All in all, Tan said, Broadcom-VMware buyers want “a simpler product and constant innovation with an eye toward security and resilience. There have been many questions about how we're putting this feedback into action. Today, I want to clarify what we’re offering VMware customers and address those questions head on.”

Click the image above to learn more (and stick around for the last slide, where we reveal some breaking insight around VMware cloud service provider pricing).

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About the Author(s)

Kelly Teal

Contributing Editor, Channel Futures

Kelly Teal has more than 20 years’ experience as a journalist, editor and analyst, with longtime expertise in the indirect channel. She worked on the Channel Partners magazine staff for 11 years. Kelly now is principal of Kreativ Energy LLC.

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