Thread regarding VMware layoffs

Original post is missing context. What is the definition of “growth”? Headcount growth?, revenue growth?, profitability growth? For Broadcom, only profitability growth matters and I can 100% guarantee there will be drastic improvements in the profitability. Headcount can and does increase for BUs but managers will be forced to stop the Amway mindset (I move up by shoving more people under me). They will be forced to decide what they really need for staffing.

Back when we got acquired we had critical core functions we were doing for customers. This was poked at and the simple question was asked “how much do you charge customers for this”. We looked at each other d-mbfounded and replied “nothing”. Hock said “tell them you are going to charge them for it and see if they are willing to pay. If they are it has value to them and we start charging them, if they say no thanks then it has no value and we let the people go that were doing it”. With this approached we dumped 25% of our org.

Hock could give a flying F about growing the company or taking care of VMware's long tail (500,000 customers).

If your ELA is less than 10 million, then Hock doesn't feel you spend enough to deserve any kind of support or feature additions. And even if you spend 10 million plus, he will tell you all day that he will do anything for you, but the reality is, he will still be making deep cuts to the teams you depend on and will ask you to pay 2 to 3 for it.

"Those aren't analysts....nothing but shill reporting.
there's no miracle 4th quarter play here."

That's pretty much what I'm saying.

LMFAO. Those aren't analysts....nothing but shill reporting. come on, wise up dude.

now on the growth aspect, it's profit and forced adoption as prices are raised as everyone knows.

stop reading all the external bullsheist. the plan is simple...dump that which isn't profitable, focus on sticky stuff, raise prices, cut costs.

there's no miracle 4th quarter play here.

I'd also joke about success beginning by standardizing on fewer than a
dozen varieties of Python, but I think that joke's been made.

Start with standardizing on not using Oracle Java because the license is free.
Wouldn't it be hilarious if all internal copies were deleted so it can never be used -- even by things that are old working tools?

By butchering it. Nah. I suspect this will be good in the long run, and it may be the best way to stay relevant and cash flow positive.

There's a lot of busy work that could end by actually leveraging partners, and improving the back office tools, and possibly by getting rid of SVPs that have no idea that they should chat with their counterparts and create common services.

More PMM barbecue socials could help that last one if anyone has budget.

I'd also joke about success beginning by standardizing on fewer than a dozen varieties of Python, but I think that joke's been made.

Broadcom is capable of bringing success by removing duplicate management layers inside BGs who wouldn't know a customer requested improvement if it bit them, or by outsourcing the WWO, preferably to a company with some kind of pay for performance metrics for delivering a SaaS platform.

Still not convinced after half a decade of releases that it wouldn't have been cheaper or more efficient to use an off the shelf SFDC SaaS module and existing APIs.

Not rebranding half the portfolio once a year would eliminate a metric ton of busy work.

Not reinventing the partner program terminology annually might be fun to try.

All of the above might lead to smaller DMT and Sales Ops teams or at least reduce the #of rescues they perform each month over virtual paperwork.

VMware is a huge business that could use an independent review and a huge dose of central decision tracking. It's still a good company, but it's been a long while since it was a great one.

If you listen to Broadcom's Q3 Earnings Call, you'd hear that Enterprise customer software renewals averaged 140% of the previous contract value. Broadcom is consistently raising prices to their customers. It's a race between price hikes and certain customers dumping Broadcom software that results in a 5% y-o-y revenue increase...

Well, vmware could have flourished with better management.
A decade of grift made that impossible now, however.

There are no new products and only focused R&D. They skip all that (new products/growth etc) through acquisition of poorly managed but good tech companies. Rinse & repeat

There is no doubt that profit margins will increase, but what about R&D and new products and market growth. That is what they are talking about.

I don’t think BC is interested in growth but in profit, I don’t recall BC investing in Symantec and that made them decline from being one of the leaders in the cybersecurity market to almost non-existent

that 10-15% price increase in year one will account for much of that, then strip out 70% of the cost, huge increase in profit/ebitda - i have no doubt BC will make a success of it but by butchering what is there now

Imagine the profit once the DE&I office and about 5 levels of management are removed from profitable BUs that stay.