From Price Hikes to Layoffs: 5 Reddit Stories on Broadcom’s VMware Takeover 

Broadcom’s acquisition of VMware in December 2023 has led to a huge upheaval in the virtualization and cloud market landscape, leaving many VMware customers and partners feeling abandoned, disillusioned, and downright outraged.  

Just scroll through the r/vmware subreddit and you’ll find post after post of complaints about the Broadcom acquisition and its negative impact on everyday VMware users.  

Below are five standout Reddit posts that perfectly illustrate the disruption and chaos that IT leaders are experiencing in the VMware acquisition aftermath.    

1. The never-ending renewal nightmare 

This Redditor sums up the growing frustration among VMware customers since Broadcom took over. They detail the bewildering experience of receiving a perpetual renewal quote from Broadcom, only to have it backtracked without providing a new subscription quote. They are left in a state of limbo, without support, and bracing for an exponential price hike. These conditions can swallow smaller businesses whole, prompting many loyal customers to consider other options. This user’s experience is just one of many examples of how Broadcom’s approach is turning a once-reliable service into a source of frustration and uncertainty. 

2. Short-term gains, long-term losses

This Redditor describes a call with a customer who is facing significant challenges with Broadcom’s acquisition of VMware. The customer, previously happy with his annual renewal rate of $160K, now faces a forced migration to Term SKUs which costs an eye-popping $1.6 million—a 900% increase! Not being to use features such as Core Disable or Intel SST-Profiles only adds insult to injury. While Broadcom might see quick financial gains with this approach, they are resolutely driving away loyal customers, which may lead to significant long-term losses.  

3. Astronomical cost increase

While Broadcom has its eye on generating more revenue from Fortune 500 companies, smaller companies are losing massive revenue if they stick with Broadcom. This Redditor says their 5-year costs are set to jump from $2.5 million to a jaw-dropping $138 million. This is another case that shows Broadcom’s aggressive pricing model is unsustainable for many customers, driving them towards cheaper alternatives. 

4. Mid-training layoffs

As if the changes in product and pricing aren’t enough, one Redditor reports an obstruction to their VMware courses due to instructor layoffs. The complaint zeroes in on the fact that the course had yet to be completed when this happened, and the instructors were left to their own devices to finish (literally). These decisions show a lack of consideration for both customers and employees, leading to significant disruption and a loss of trust. The user’s empathy for the affected instructors and criticism of Broadcom’s actions is likely a sentiment shared by many.  

5. Higher education hit hard

Finally, another Redditor highlights the severe financial impact Broadcom’s new pricing model is having on higher education institutions. They detail a staggering price increase, with the cost of their VMware infrastructure soaring from $17K to $470K for a three-year subscription—over a 1000% hike for the same hardware and licensing. In a sector like higher education where budgets are often tight, this gives them no choice but to find the nearest exit.  

These posts are just a glimpse into the larger sentiment among VMware customers surrounding Broadcom’s acquisition. For a more comprehensive view, check out our latest CloudBolt Industry Insights Reality Report: VMware Acquisition Aftermath, which reveals data from 300 IT decision-makers on what they are planning to do next. 

CII Reality Report: VMware Acquisition Aftermath

Download the full report