VMware is being "cleaned up" by Botong. Can we be "arrogant?

[Global Storage watch | Focus on technology]]

as we have heard, in the first two months of New Year's Day in 2023, we saw that Botong successfully completed the acquisition of VMware, the well-known virtualization boss, at a high price of 61 billion US dollars. The date is November 22, 2023.

In this merger, Botong will also bear the net debt of US $8 billion from VMware. That is to say, the total transaction amount of Botong's acquisition of VMware should be $69 billion.

Worth $61 billion

lying in the arms of Botong,

is VMware a blessing or a disaster?

At the same time, Botong has obtained conditional approval from China's State Administration of market supervision in November 2023. The merged company cannot abuse its market position in several fields, including continuing to ensure the interoperability between VMware server virtualization software and third-party related hardware products sold in China.

Before that, I wrote an article in May 2023, as follows:

botong's $61 billion acquisition of VMware

botong is very capricious. After buying this, he buys another one. Now he buys VMware for 61 billion dollars. However, I thought the acquisition of Botong would be successful before. Of course, being rich is capricious. Besides, Botong is also a technology giant recognized by Wall Street. The more active the business is, the more opportunities it has to make money.

Looking back on the acquisition of Botong, a madman, it is really awesome. The representative ones are: purchasing Symantec Enterprise security business with 10.7 billion dollars in cash, purchasing software company CA technology with nearly 19 billion dollars, and eating Boko communication Brocade with 5.5 billion dollars.

According to industry sources earlier, Broadcom is conducting in-depth negotiations on the acquisition of VMware, a software group, which is likely to become one of the largest acquisitions this year. The deal may be worth more than $50 billion and will transform the semiconductor group eager to trade into a diversified technology company from chips to cloud computing services.

At present, the market value of VMware is 40 billion US dollars, and the market value of Botong is about 222 billion US dollars.

About six months ago, Dell Technologies, a pioneer in computing, stripped 81% of its stake in VMware.

A few days ago, the updated news came out that Broadcom was negotiating to purchase VMware for about US $60 billion, which would be one of the largest acquisitions this year. If the talks do not break down, the two technology companies plan to announce a cash plus stock deal on Thursday.

To help pay for the deal, Botong plans to finance about US $40 billion from the debts of several banks. The price of $140 per share will be nearly 50% higher than VMware's closing price last Friday, but it is still far below the stock's high of more than $200 reached in the spring of 2019.

On May 26th, 2023, it was officially announced that Broadcom purchased VMware for $61 billion. Previously, VMware, as an important member of the EMC Alliance, was successfully acquired by Dell for $67 billion. Industry insiders commented that Dell really made another profit by selling VMware this time. Perhaps this is the value of technology investment.

Of course, all this is becoming a reality. After the merger, Botong + VMware immediately set foot on the cloud. Is this the future that Botong really wants?

How about it? After the successful acquisition of VMware was officially announced in 2023, Botong started an unprecedented adjustment for VMware.

Krish Prasad, senior vice president and general manager of VMware Cloud Foundation, wrote an article to reveal that Broadcom has completed the acquisition of VMware, aiming at private Cloud, hybrid Cloud and multi-Cloud environment, through faster innovation, with a simpler product portfolio and a stronger ecosystem, VMware has already started subscription sales.

Interestingly, the product portfolio simplification of all departments of VMware by Broadcom stems from feedback from customers and partners over the years. These feedback results show that VMware's products and marketing are too complex. What should I do?

It is easy to handle, and you can use all subscription modes. The next step is to accelerate the transition from all VMware by Broadcom solutions to subscription licenses, and stop selling permanent licenses, support for permanent products, and subscription (SnS) renewal from December 11, 2023, and hybrid purchase plan/subscription purchase plan (HPP/SPP) points.

In addition, the self-contained subscription license option is introduced to provide license portability for VMware-verified hybrid Cloud nodes running VMware Cloud Foundation.

The VMware Cloud Foundation product portfolio has been adjusted to include:

one is VMware Cloud Foundation, which is the flagship enterprise-level hybrid Cloud solution. Helps customers run their key businesses and modern applications in a secure, flexible, and cost-effective manner. In order to benefit more customers from this solution, the official reduced the previous subscription price by half and increased the support service level, including enhanced support for activating solutions and lifecycle management.

The second is the new VMware vSphere Foundation, which provides small and medium-sized customers with a simpler enterprise-level workload platform. This solution integrates vSphere with intelligent operations management to provide optimal performance, availability, and efficiency as well as higher visibility and insight.

For subscription licensing mode, VMware has been transiting to subscription mode for more than a year, and the industry has already adopted subscription as the standard for cloud consumption. With the simplified product portfolio in place, VMware by Broadcom is completing the transition to subscribing to products. Starting today, after the renewal of the permanent license and support and subscription (SnS), the product will only be provided in the form of subscription or term license.

To this end, existing customers can continue to use permanent licenses with valid support contracts, and VMware by Broadcom will also continue to provide support defined in the contract commitments. Of course, Botong would like customers to check the list of permanent licenses, including support for service renewal and expiration date. Botong also encourages customers to "exchange old products for new ones" in exchange for new subscription products, and provides upgrade pricing incentives from Botong. Hehe.

In this regard, Botong released a list of products affected by the latest subscription model:

VMware Cloud Foundation
VMware vSphere
VMware vSAN
VMware NSX
VMware HCX
VMware Site Recovery Manager
VMware vCloud Suite
VMware Aria Suite
VMware Aria Universal
VMware Aria Automation
VMware Aria Operations
VMware Aria Operations for Logs
VMware Aria Operations for Networks
in this way, the sales of VMware permanent licenses will be terminated as soon as chaojinhuai Broadcom. Of course, the licenses purchased before can still be used, but will eventually lose support. Broadcom has pushed forward the plan to transform virtualization and cloud computing company VMware into subscription-based business. As of December 11, Botong no longer sells permanent licenses for VMware products. VMware completed Broadcom's $61 billion acquisition in November 2023. In the future, VMware will only provide regular licenses or subscription services.

VMware customers who already have permanent licenses and valid support contracts can continue to use them. VMware "will continue to provide the support defined in the contract commitment". However, when the SnS deadline of customers ends, they will not be able to obtain any support. Ha ha, everything is for subscription! Botong is trying hard to force customers to purchase in the subscription mode, but for customers who switch from permanent license to subscription, what should they do? Is the upgrade reward only used to make up for the cost difference between permanent licensed users and subscription users?

The problem is that before that, most VMware businesses were built on the permanent license mode. Permanent licensing is the "foundation" of VMware ".

Industry insiders pointed out that what is more worrying is that Botong has laid off at least 2837 VMware employees, bringing uncertainty to VMware's next development. For both partners and customers, they are experiencing the challenges brought by the transformation of VMware's sales model. It is natural that they worry and feel confused.

So, how on earth should Botong persuade the skeptical channel partners so that they can see the way out?

Botong believes that many partners have achieved success in the subscription mode, and partners have the opportunity to interact with customers more strategically and provide higher-value services to promote customer success.

However, in fact, since the termination of the permanent license will not bring immediate benefits to the customer, therefore, customers affected by changes in VMware's business strategy must assess how much they are willing to pay to access future VMware by Broadcom products.

After Botong's operation, VMware can be said to be refreshed. Of course, after the adjustment of broadsword and Tiger, where will VMware go?

Is it true that:

lying in the arms of the eldest brother, Rong Hua stretched out his hand in this life.

Domestic virtualization vendors:

VMware is being "cleaned up" by Botong ",

can we be arrogant?

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source: Global Storage observation | Amin observation

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Original link: https://blog.csdn.net/qq_41689867/article/details/135536800