Broadcom/VMWare's Tactics: Holding Back Quotes to Pressure Existing Customers

In the rapidly evolving world of IT infrastructure, companies rely heavily on the predictability and transparency of their technology partners to make informed decisions. However, recent practices by Broadcom/VMWare have raised significant concerns among their existing customer base. Specifically, Broadcom/VMWare has been holding back quotes for existing customers, a move that appears to be a strategic maneuver designed to push these customers into paying higher licensing fees.

The Issue at Hand

Broadcom/VMWare has been delaying the provision of quotes to its long-standing customers. This delay is not just a minor inconvenience; it creates a high-pressure situation where customers have little to no time to explore or prepare for alternative solutions. By withholding quotes, Broadcom/VMWare essentially corners their customers into a position where the only viable option is to accept the higher fees.

Why This Matters

• Lack of Transparency: Transparency is crucial in any business relationship. Customers depend on clear and timely communication to plan their budgets and IT strategies. By holding back quotes, Broadcom/VMWare undermines this essential aspect of trust.
• Financial Impact: The inability to receive a timely quote forces customers to accept the higher licensing fees without the opportunity to negotiate or seek competitive offers. This tactic can significantly strain the financial resources of businesses, particularly those with tight IT budgets.
• Operational Disruption: The lack of a quote in a timely manner can lead to operational disruptions. Companies may find themselves scrambling to adjust their budgets and strategies at the last minute, which can hinder their ability to effectively manage their IT environments.

The Strategic Intent

Broadcom/VMWare’s strategy seems clear: by creating a time crunch, they leave customers with no choice but to comply with the increased fees. This approach can be seen as an effort to 'sandbag' customers, ensuring that they cannot pivot to alternative solutions in time. Such tactics might boost short-term revenue for Broadcom/VMWare but erodes long-term trust and loyalty.

Alternatives and Solutions

Customers facing this dilemma have a few potential courses of action:

• Explore Other Vendors: While Broadcom/VMWare's solutions are robust, there are alternatives available in the market. Companies like ComputerVault offer competitive virtualization and private cloud solutions that can serve as viable replacements.
• Long-Term Planning: Building a long-term IT strategy that includes potential alternatives can mitigate the risk of being caught off guard by sudden pricing changes. Regularly reviewing the market and maintaining relationships with multiple vendors can provide leverage and options.

Conclusion

While Broadcom/VMWare’s technology has long been a cornerstone for many businesses, their recent tactics of withholding quotes to pressure customers into higher fees reflect a troubling shift in customer relations. Companies must stay vigilant, explore alternatives, and negotiate firmly to ensure that they are not unfairly disadvantaged. By doing so, they can maintain control over their IT budgets and continue to thrive in a competitive market.