Gartner advises renegotiating subscriptions now to avoid ‘dramatic’ and ‘extraordinary’ price rises
Analyst firms S&P Global Market Intelligence and Gartner have both offered negative evaluations of Broadcom’s takeover of VMware. S&P surveyed VMware customers and found 44 percent feel neutral about the deal, and 40 percent expressed negative sentiments. But when the analyst crunched the numbers for current customers of both VMware and Broadcom, 56 percent expressed negative sentiments. More than a quarter rated their response to the deal as „extremely negative“. One reason S&P cited for that response was „potential impact on software licensing terms and conditions. Here’s the analyst’s list of other concerns raised by users:
Analyst group Gartner’s thoughts on the deal focus on likely price rises, and how best to avoid them. In a document titled „Quick Answer: How Should VMware Customers Prepare for the Broadcom Acquisition?“ Gartner’s analysts write: „After Broadcom’s acquisitions of CA Technologies and Symantec, numerous customers complained to Gartner about dramatic out-the-door cost increases during renewals, with limited flexibility for negotiations.“
The analyst group also sees „an influx of midsize and smaller customers looking to migrate away due to extraordinary price increases and challenges with support.
