Broadcom Instructs VMware to Cease 'Commingled' Carbon Black Transactions
- 29-Nov-2023 5:45 PM
- Journalist: Harold Finch
In the aftermath of Broadcom's recent acquisition of VMware, the tech giant has directed VMware channel partners to immediately cease bundling sales of VMware products with those from Carbon Black and VMware End-User Computing. Broadcom is preparing these units for "strategic alternatives."
Broadcom specified that VMware would no longer accept any future orders unless partners agreed to certain terms. Partners were required to ensure that End User Computing offerings and Carbon Black offerings to end-users would be on single orders, not commingled with any other product lines. The communication from Broadcom also mentioned that the company would "review strategic alternatives" for the Carbon Black and VMware User Group businesses.
Despite the changes, Broadcom emphasized its goal to enhance the value VMware brings to its partners. The email expressed awareness that customers value VMware for its history of innovation, technology leadership, and robust partner ecosystem. Broadcom stated its intention to "preserve and enhance" this value.
There have been challenges reported by VMware channel partners in terms of communication difficulties with VMware personnel, hindering deal approval and pricing requests. Some partners highlighted struggles reaching VMware representatives for necessary approvals, leading to delays in their sales processes.
Partners have expressed concerns about their inability to get deals approved or receive pricing information. A VMware reseller noted challenges in reaching out to VMware personnel for clarification, especially given the recent layoffs within VMware.
The changes in partner terms and conditions coincide with the broader disruption caused by the acquisition, and VMware partners have reported difficulties in receiving timely communication and responses to their inquiries.
As VMware undergoes organizational changes following the acquisition, including job cuts, partners have observed disruptions in their interactions with VMware personnel. Communication gaps, deal approval delays, and pricing uncertainties have added complexity to the sales processes, leaving some partners in a challenging position.
The uncertainty around pricing changes and the lack of proactive communication from Broadcom about the new figures have created additional hurdles for VMware partners. The rapidity of changes following the acquisition has surprised some partners, who find the situation sudden and the disruption significant.
VMware has notified some recently absorbed employees of job eliminations, adding to the overall sense of uncertainty and instability. While Broadcom has not officially commented on the number of job cuts, analysts anticipate a financial impact of $250 million.
As partners grapple with the evolving landscape and await more clarity from Broadcom, the challenges associated with pending deals, pricing adjustments, and organizational changes within VMware continue to impact the channel ecosystem. The current scenario highlights the need for effective communication and support from Broadcom to ensure a smoother transition for all stakeholders involved.