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Broadcom shareholders rich, Nutanix happy, and VMware partners angry

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Brandon Lee
Posts: 417
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Topic starter

Will there be books written in a few years, "How to kill a company in six months?" I really wonder. Very interesting article on CRN about the current state of affairs with Broadcom. Nutanix is glowing at the developments across the board with broadcom. They are now literally having business thrown at them from disgruntled partners and customers. 

VMware partner tensions rising

Tensions have escalated within VMware's partner community following Broadcom's abrupt decision to terminate existing reseller agreements with its extensive network of 65,000 partners. This group includes solution providers, distributors, and significant global systems integrators, with the termination notice arriving just before Christmas.

VMware's partners were informed they might be invited to Broadcom's new partner program early in the new year. On January 4, Broadcom further clarified that while smaller deals could proceed until February 4, any larger deal registrations involving VMware's key "strategic" customers were effectively canceled immediately.

Broadcom has categorized around 2,000 of VMware's top accounts as "strategic" and plans to manage these accounts directly, as reported by CRN. This change affects VMware's major reseller and integrator partners who previously handled these accounts.

Jim Kavanaugh, CEO of World Wide Technology, a significant IT player and a top global partner of VMware, expressed his disappointment with Broadcom's strategy.

In a recent CRN interview, Kavanaugh said, “At the end of the day, we would love to build a strategic partnership with VMware. Unfortunately, I’m not sure that’s what they have planned.” He further stated, “All we can do is continue to have discussions with Broadcom and VMware and see where they’re going. And if it’s not meant to be because that’s not the direction they want to go from a partner perspective, then we have to be agile enough to move on and look at other alternatives and solutions for our customers … So on the VMware side, it doesn’t look like it’s going to be a strategic partnership unless they decide to change how they’re going to go to market.”

Posted : 25/01/2024 10:36 pm
Posts: 58
Trusted Member

a big company doing things will the sole intent of boosting revenue regardless of who it pisses off? let me show you my surprised face.

Posted : 25/01/2024 11:54 pm