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Broadcom loses another big VMware customer

(www.theregister.com)
146 points belter | 3 comments | 03 Dec 24 16:44 UTC | HN request time: 0s | source
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beambot ◴[03 Dec 24 17:10 UTC] No.42308482[source]▶
Broadcom's handling of the VMWare acquisition gives me a renewed perspective and surprising appreciation of Oracle.
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ebiester ◴[03 Dec 24 17:33 UTC] No.42308746[source]▶
Both of them are lawnmowers.

They are looking to extract the maximum amount of money possible. I'd argue that Broadcom could extract more money with smaller uplifts but I think they are also looking to consolidate their customer base. Some of these crazy numbers may be doing just that - saying that these people aren't wanted as customers anymore.

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hotstickyballs ◴[03 Dec 24 17:45 UTC] No.42308883[source]▶
Extracting the maximum amount of money possible is the primary purpose of a company. It’s what you should expect to happen.
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1. outworlder ◴[03 Dec 24 18:33 UTC] No.42309525{3}[source]▶
> Extracting the maximum amount of money possible is the primary purpose of a company. It’s what you should expect to happen.

Except that's not what they are doing. By all accounts (and their financial guys may disagree with me and that's ok), what they are actually doing is trying to extract more money than what the market will bear. They may succeed for a while, but it comes at the cost of cannibalizing your own business.

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2. griomnib ◴[03 Dec 24 18:53 UTC] No.42309781[source]▶
Who knows, maybe they are thinking we’ll buy VMWare for $x, use the implicit lock in to extort customers until there’s nothing left in three years, get a tax write off, and pocket $3x.
3. this_user ◴[03 Dec 24 19:24 UTC] No.42310156[source]▶
They certainly are losing customers, but that also reduces costs on their side, which means lower overall revenue, but higher margins. Maybe they are trying to get rid of anyone who isn't so locked in that they cannot leave, consolidate everything around the biggest and most profitable accounts. Once you know how large that group is, you can squeeze them even further.