Anyone have any thoughts on what is likely to happen to the PSO team after the acquisition? I've read that Broadcom does not have their own PS team and uses partners. However, PSO is a profit center and Broadcom likes money. Would they really want to farm them off to a 3rd party consulting company? Maybe it would be an opportunity to use VMW PSO as a larger Broadcom PSO. Also thinking about active and signed SOW's, wouldn't there be a legal requirement to complete them?
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If the products aren’t simple to implement, then someone is doing something wrong. We can’t have a huge group to fix engineering mistakes. (Wink GS)
Are you suggesting that PS is cr-p with no value? I think a lot of the bigger deals wouldn’t happen if VMware couldn’t provide some kind of implementation service.
Broadcom's strategy with all acquisitions has been to separate what they want and what is cr-p with no value. The cr-p pieces will be sold off to stupid businesses fully intact. The good thing is there is no shortage of stupid companies with money to burn that willingly by the junk. A few examples
LSI network processor group - sold to Intel, completely shut down by Intel
LSI Flash controller - sold to Seagate, completely closed by Seagate
Broadcom Internet of Things - sold to Cypress, turning into a compete waste of money.
Yeah we’re fu---d. I don’t buy any of this bu-----t about driving consumption, that’s just to settle the worker drones and get them to plod on. Too much middle management in us.
Perhaps they’ll keep us do-ers but that’s probably just wishful thinking on my behalf.
VMware PSO compared to our consulting partners is challenging and I am going to assume Broadcom is going to see that. The amount of non billable managers, back office leads and admins make margins very small. Also VMware billing rates are way higher than partner rates. My guess is Broadcom will shut down PSO and when a deal is sold take a cut of the PS revenue that is passed through to a partner. No need to keep the staff or carry the margin risk.
No body knows. Our products aren't always easy to implement without PS, so I suspect they will still be around though may be reserved for bigger deals.
Two things BC could do with PSO. Sell the BU but they would need to strip it down to a sellable unit. I.e do the layoffs in house. Or do what Dell did with the EMC cloud PS group when they gave it to VMW, give it away and let the partner do the cuts. A third option could be hold onto the very large PSO deals ($5M+) and get rid of the rest. Either way the outlook for PSO is not good.
this is how many PSO will be left after broadcoms magic -> 0
See Ca Technologies a few years back. 0 PSO left!