Since Broadcom acquired VMware, its focus has been on better positioning customers for success in their digital transformation. Through a recent blog post by Hock Tan, President and CEO of Broadcom, the company has outlined its strategic evolution for the VMware Cloud Foundation (VCF) market, addressing key questions about this new direction.
According to Mark Thomason, director of digital business models and monetization research at IDC, “the trend towards adopting the subscription business model is rapidly growing.” In this sense, VMware is aligning itself with industry standards, moving towards a model that simplifies operations and continuously improves without additional costs, moving away from the perpetual licensing model that involved complexities and high costs for new features and updates.
Broadcom is introducing two simplified solutions: VMware Cloud Foundation (VCF) and VMware vSphere Foundation (VVF). VCF is a subscription-based private cloud platform that integrates computing, storage, networking, management, and support capabilities, while VVF is presented as an alternative for customers not ready for a full-stack solution.
Broadcom has significantly reduced VCF prices compared to VMware’s previous list prices, offering a more integrated solution that is expected to significantly reduce total cost of ownership for customers.
VCF will introduce more options and competition in the cloud market. It enables companies to host their workloads on-premises and switch platforms without incurring significant costs. This flexibility will allow for more intense competition among cloud service providers and help commercial and government organizations move towards digital sovereignty.
Broadcom is creating an onboarding process that helps cloud service providers (CSPs) ensure service continuity. Additionally, it is adapting its Broadcom Partner Advantage Premier program to cover any qualified service provider, offering initial discounts and white-label solutions for smaller partners.
Broadcom is committed to continuing to create value within VMware’s partner ecosystem. By integrating VMware’s partner ecosystems into Broadcom’s partner programs, the company aims to resolve channel conflicts, incentivize long-term product adoption, and simplify processes. All active VMware resellers have been invited to join the Broadcom Advantage program, allowing them to play an essential role in transitioning the customer base to the subscription model and transforming their businesses with Broadcom’s private cloud infrastructure.
These initiatives not only aim to simplify and standardize the technology stack to enhance customer experience and provide greater value but also seek to foster increased profitability and market opportunities for partners, marking a significant step in Broadcom’s market approach evolution.
Source: blog Broadcom (https://www.broadcom.com/blog/vcf-go-to-market-strategy-your-top-questions-addressed)