Broadcom’s Price Inflation for VMware Licensing

by Michael Campbell | 2024-08-21 | Cloud Migration Blogs

So, imagine you have a favorite toy that you’ve been playing with for years. One day, a new toy company buys the company that made your toy. They tell you that you have to start paying a lot more money if you want to keep getting new parts and help when your toy breaks. That’s not fair, right? Now, imagine there’s another company that says, “Hey, you can keep playing with your toy, and we’ll help you with any problems, but you don’t have to pay all that extra money.” 

That’s exactly what ReluTech is doing for companies that use VMware.

ReluTech offers a solution where you can keep your VMware perpetually licensed software and get all the support you need, like fixing bugs, staying secure, and even improving performance, without being forced to switch to a more expensive option. This way, you don’t have to rush into buying something new or worry about not having support when you need it.

broadcom vmware merger agreement

But Why Does This Matter?

In today’s rapidly evolving tech environment, many companies rely heavily on virtualization software like VMware to keep their operations running smoothly. However, recent changes have left many businesses in a tough spot. You might have heard about the acquisition of VMware by Broadcom and the challenges it has created, especially if you’re a company that’s not one of VMware’s top 100 customers. If you’re wondering how this impacts your business and what you can do about it, you’re not alone—and that’s where ReluTech comes in.

Why Broadcom Bought VMware and the Resulting Challenges

First, let’s talk about why Broadcom bought VMware. Broadcom is a giant in the semiconductor industry, and they saw VMware as a valuable addition to their portfolio. VMware’s virtualization software is used by thousands of businesses worldwide, making it a lucrative acquisition. However, Broadcom’s strategy post-acquisition has focused primarily on VMware’s most profitable customers—the top 100 accounts. For these high-value customers, Broadcom is likely to offer premium support and services and not stiff them too badly on price increases. 

But what about everyone else? If your company isn’t one of these top accounts, Broadcom’s approach has probably left you in a difficult situation. Broadcom has significantly increased the prices for VMware services for all other customers, essentially indicating that they no longer prioritize smaller or mid-sized businesses. This has created a problem for many companies that have been using VMware for years and now face skyrocketing costs if they want to continue receiving the support and services they’ve grown accustomed to using. 

merger agreement broadcom vmware

Why ReluTech’s Service is Crucial

ReluTech’s maintenance and support services are designed to help companies who feel left behind by Broadcom’s new focus. By offering independent support for VMware, ReluTech ensures that businesses can retain their current VMware licenses without the pressure to switch to costly subscription models. 

Here’s what ReluTech offers:

  • Full Support for All VMware Versions: No matter which version of VMware you’re using, ReluTech provides comprehensive support, so you don’t have to worry about being forced into unnecessary upgrades.
  • Security and Stability: ReluTech offers proactive monitoring and patching to keep your systems secure, allowing you to focus on your business without the fear of vulnerabilities.
  • Cost-Effective Solutions: ReluTech helps you save up to 50% compared to the new pricing models imposed by Broadcom, making it a more affordable option for maintaining your existing VMware environment.
  • Tailored Support: With dedicated support engineers and personalized service, ReluTech ensures that your specific needs are met without the cookie-cutter approach that might not fit your business.

Don’t Get Left Behind

Broadcom’s acquisition of VMware has undeniably shifted the landscape, leaving many companies scrambling for a solution. If you’re feeling the pinch from rising costs and reduced support options, ReluTech is here to help. By providing a safe and cost-effective alternative, ReluTech ensures that your business can continue to thrive without the added pressure and expense. In a time of uncertainty, having a reliable partner like ReluTech can make all the difference.

Michael Campbell

The author:

Michael Campbell

CEO


Michael Campbell is the CEO of ReluTech with a passion for building high-growth companies and leading high-performance teams. He excels in strategic planning, new market identification, and guiding teams through periods of growth and change. Michael is also dedicated to personal development and helping others advance their careers.


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