VMware acknowledged that customers are disgruntled, chafing against a switch to subscription licensing and annoyed that account contacts may change. You have to cut through a lot of VMware mansplaining--delivered via a Valentine's Day blog post--to get those takeaways.
In a lengthy blog post, Prashanth Shenoy, VMware Vice President Marketing, Cloud Platform, Infrastructure, and Solutions, tried to address the elephant in the VMware ecosystem--the changes since Broadcom closed the VMware deal have rattled customers.
Meanwhile, VMware customers are actively looking at alternatives. VMware customers will likely be a huge topic when rival Nutanix reports earnings. Members of the Constellation Research BT150 have already noted that they have mapped out VMware exit strategies. By the way, VMware partners aren't pleased either.
- Dell Technologies to exit commercial agreement with VMware
- Will VMware customers balk as Broadcom transitions them to subscriptions?
- BT150 CXO zeitgeist: AI trust, AI pilots to projects, VMware angst, projects ahead
With that backdrop, you almost feel sorry for Shenoy. Here are a few excerpts and a quick translation.
"Since the completion of Broadcom’s acquisition of VMware, we have been all about change. For the VMware Cloud Foundation division, all of this change was necessary to transform our business to deliver faster innovation with more value to customers, and even better profitability and market opportunity for our partners."
Translation: VMware has received enough pushback that it's worry about its numbers.
From there, Shenoy notes that VMware's transition to subscription licensing has been done before. A simplified portfolio will make it easier on customers and standardization will drive value.
Translation: VMware is forcing customers to buy a bundle of stuff wrapped into VMware Cloud Foundation and some of it won't be used.
"Subscription is the model all major enterprise software providers are on today. Subscription software is the right model for fueling continuous innovation for customers. This past quarter we finalized the switch fully to subscription software, just like everyone else. We immediately turned this transformation into net new value for our customers. How? Do you want to have deployment flexibility? Now you can. When you purchase VMware Cloud Foundation, you get license portability."
Translation: Yes, we're mansplaining that you'll most likely be spending more than you used to. We'll allow you to take your licenses to hyperscalers, but so far only Google Cloud is signed up.
Shenoy then noted that VMware has consolidated product teams and R&D and lumped them into VMware Cloud Foundation. While that move is nice for Broadcom's costs, VMware will have to show customers the innovation payoff. Shenoy added that automation tools for data services, load balancing and private AI as examples.
VMware customers aren't happy, but partners in the channel aren't pleased either. Shenoy devoted a subhead to channel changes. Again, VMware does a bit of mansplaining and noted that Broadcom is taking the big accounts.
"It makes business sense for Broadcom to have close relationships with its most strategic VMware customers to make sure VMware Cloud Foundation is being adopted, used and providing customer value. However, we expect there will be a role change in accounts that will have to be worked through so that both Broadcom and our partners are providing the most value and greatest impact to strategic customers."
Translation: VMware is taking big accounts and partners will have to figure something out.
Finally, VMware customers get to the kicker. Shenoy said that VMware feels customer pain.
"Broadcom identified things that needed to change, and as a responsible company, made the changes quickly and decisively. The changes that have taken place over the past 60+ days were absolutely necessary. We understand this massive transformation and simplification of the portfolio and our business model has raised many questions and concerns as you continue to evaluate how to maximize value from your VMware software investments. We are proactively working with the sales teams and channel partners to help customers make this transition and encourage customers to engage them to work through the best approach for their businesses."
Translation: Embrace the pain. These changes are happening anyway. We'll figure it out and you'll stick with VMware because it's too hard this minute to migrate off of our platform. You're stuck until proven otherwise.
Shenoy ended with "it will only get better" in a statement that seems to assume customers will stick around. It remains to be seen whether customers reply with "it only takes one to end a relationship."
