Broadcom’s VMware Overhaul: EUC Arm Sale Sparks Outrage as Costs Skyrocket

Broadcom’s latest plot twist? Selling VMware’s EUC arm to KKR for a cool $3.8bn. Customers, hold onto your virtual desktops—change is afoot, and it’s pricier than ever! 📈💸 #BroadcomShuffle

Hot Take:

Looks like Broadcom is playing hot potato with VMware’s End-User Compute arm, tossing it over to KKR for a cool $3.8 billion. They must have realized that juggling cloud services and customer satisfaction is harder than it looks. Now they’re trimming the fat, but will customers be left holding the bag? Let’s dive in before we all need a virtual desktop to hide our shock at the price hikes!

Key Points:

  • Broadcom, the new puppet master of VMware, is selling the End-User Compute (EUC) division to KKR for a whopping $3.8 billion.
  • VMware’s EUC business rakes in about $1 billion in annual revenue, which isn’t chump change, even in tech dollars.
  • Since Broadcom’s acquisition, VMware customers have been on a roller coaster, minus the fun, with perpetual licenses cut and prices skyrocketing.
  • Customers have been less than thrilled, with some reporting cost increases as subtle as a sledgehammer – think 6600% more expensive.
  • Prashanth Shenoy of VMware has been serving up positive spins like a DJ, but customers aren’t dancing to the tune of subscription models and portfolio downsizing.

Need to know more?

Shake-Up or Shake-Down?

VMware's EUC is the belle of the ball, attracting government and industry bigwigs who prefer their desktops virtual and their hardware, well, not theirs. But since Broadcom waltzed in, they've been changing the tune, and now it seems they're ready to let KKR cut in. The problem is, changes like nixing perpetual licenses have customers feeling like they're being dipped a little too aggressively.

The Price is Wrong

Imagine waking up one day to find your $8 million bill has morphed into a $100 million behemoth. That's not a typo; that's what some customers are facing post-Broadcom. With increases that make beanstalks look stunted, clients are understandably less than enthused. The Register has been collecting these cost hike horror stories like they're going out of style — which, for the customers' sake, let's hope they are.

Spin Doctor in the House

Enter Prashanth Shenoy, who's been trying to patch up the PR wounds with the healthcare equivalent of a smile and some glitter. He's talking up the 'flexibility' of monthly subscriptions and the 'efficiency' of a slimmed-down VMware. But for those staring down the barrel of a 6600% price hike, his words might be as comforting as a band-aid on a broken leg.

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Tags: Broadcom acquisition, cloud computing changes, ESXi Hypervisor, KKR investment, perpetual licenses, virtual desktop infrastructure, VMware