In a recent blog post, Hock Tan, CEO of chipmaker Broadcom, directly addressed anxieties surrounding the company’s acquisition of software giant VMware. This follows an earlier blog assessing VMware’s first 100 days under Broadcom’s wing.
Tan acknowledged the “unease” among customers and partners regarding Broadcom’s approach to VMware, particularly concerning innovation, pricing, subscriptions, and the role of channel partners.
Focus on Customer Needs
Tan explained that Broadcom’s decisions stemmed from listening to VMware customers even before the acquisition finalized. He claimed the previous go-to-market strategy was “too complex and costly” and needed streamlining.
According to Tan, customers prioritize simpler products with constant innovation that prioritizes security and resilience. The blog post aimed to clarify how Broadcom is addressing these concerns.
Transparency on Key Issues
- Innovation: Broadcom maintains a commitment to ongoing product development for VMware.
- Pricing: While specifics weren’t mentioned, the blog assures customers of receiving value-driven pricing.
- Subscriptions: Broadcom acknowledges the growing importance of subscription models and intends to cater to that demand.
- Channel Partners: The company recognizes the value of partners and is integrating the VMware partner ecosystem into Broadcom’s programs, though adjustments are expected.
Only Time Will Tell
While Tan’s blog aims to reassure customers and partners, only time will tell how successful Broadcom’s integration of VMware will be. Whether Broadcom can balance its cost-cutting focus with the innovation that VMware customers have come to expect remains to be seen.
