Broadcom CEO Hock Tan this week publicized some concessions aimed at helping customers and partners ease into VMware’s recent business model changes. Tan reiterated that the controversial changes, like the end of perpetual licensing, aren’t going away. But amid questioning from antitrust officials in the European Union (EU), Tan announced that the company has already given support extensions for some VMware perpetual license holders.
Broadcom closed its $69 billion VMware acquisition in November. One of its first moves was ending VMware perpetual license sales in favor of subscriptions. Since December, Broadcom also hasn’t sold Support and Subscription renewals for VMware perpetual licenses.
In a blog post on Monday, Tan admitted that this shift requires “a change in the timing of customers’ expenditures and the balance of those expenditures between capital and operating spending.” As a result, Broadcom has “given support extensions to many customers who came up for renewal while these changes were rolling out.” Tan didn’t specify how Broadcom determined who is eligible for an extension or for how long. However, the executive’s blog is the first time Broadcom has announced such extensions and opens the door to more extension requests.
Read 10 remaining paragraphs | Comments
