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Broadcom leveling the playing field for VMware OEMs

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Brandon Lee
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Is Broadcom really trying to make things more fair? Apparently that is the message of Broadcom Vice President of OEM, Ricky Cooper.

Broadcom is simplifying its dealings with OEM partners like Dell Technologies, Hewlett Packard Enterprise, and Lenovo, aiming for straightforward and predictable pricing. This change will eliminate complex agreements and thousands of product options that have accumulated over two decades, according to Broadcom's Vice President of OEM, Ricky Cooper.

Cooper, speaking to CRN, pointed out the inequities in VMware's previous OEM arrangements. "It’s not fair on any of them," he said. "Because of historical relationships we've had with the likes of Dell, etc., you've got a myriad of different pricing. Nobody, I can tell you, has been on the same pricing. Everybody's different. We just need to hit the reset button and say, ‘OK, I understand where we've been, but here's where we've got to be.’"

Having joined Broadcom through its $69 billion acquisition of VMware in November, Cooper highlighted Broadcom's intention to discard the complex system of thousands of SKUs, special pricing, and various deals that had evolved as VMware became a major tech brand.

Broadcom's goal post-acquisition is to offer OEMs a more predictable framework for their joint solutions. Cooper, who previously led VMware's worldwide channel and commercial organization, views this overhaul positively. He remarked, "What had happened is we had built up an organization based on tribal knowledge where you have to understand the 6,000 SKUs we’ve got and deal [registration] and quoting and everything. Well, how easy would it be to just be dealing with a couple of SKUs? That’s going to be a real game changer. The ease of doing business. The cost associated with that will be very simple … The message really is we had to say, ‘This is crazy. Let’s pause here. Let’s get ready for your new year. As you hit quarter one, it will be a different motion, but it will be one that gives you a lot more predictability and efficiency."

Posted : 31/01/2024 11:14 pm