Thread regarding VMware layoffs

"What puzzles me, is how Hock will handle the VMware partner channel which is at least 10x what Broadcom has, and is really the driving force behind a lot of our sales. I've heard Hock is not a fan of the channel and thinks the margins they ask for on deals, are not worth the effort they put in. If he starts playing games with them, I could see them start switching customers to other platforms quickly, which was already happening with the cloud."

Following this thread in other Broadcom acquisitions. What's the point of keeping a channel that demands training and showy events and in person training, especially if that same group cannibalizes your best sources of high margin customers?

I can see rapidly continuing the off-loading of the C2 customers to CSPs, and the VMware headcount that supports them could naturally be lost through attrition with a comp change and better partner quote self service tools, but who are the core VMware customer spenders? How many of those customers have no relationship inside VMware? Why wouldn't VMware want to keep more profits, and spend less on a channel that's not actually 'adding' to VMware profitability.

I am now not going to think about the existence of marketing and what a waste it is to spend a fortune drumming up leads no one will ever want to call quarter after quarter, because acquisition is such hard work.

You know what the silly thing is? If you dig hard enough, Broadcom says the same thing each acquisition. That it’ll be different this time around. They are just pathological liars and like Galactus, Hock needs to consume other companies to stay alive.

pretty much every reply here is spot on. perhaps hock is open to partners, but that's a short term strategy until he figure another way to go direct, or change up the fianacial model with the channel to his advantage.

as another poster said , the generic statements he makes SAY NOTHING. he's too busy finding places to dump some BU's. takes time in this market and economic scenario. the employee videos...OMFUG. comical at best.

wish i could be more optimistic but it's going to be a train wreck of monumental propositions... grab some popcorn, sit back and enjoy the ride...

“ if I do that you'll sting me, and I'll drown”

Hope Hock drowns in his aquisition.

He wont change, why would he? He's got an extremely successful model.
Look at the AVGO stock price growth last 3 years and that's through covid, i only expect to see that accelerate. That is his sole function, to keep the shareholders happy by growing the stock price. They do it by running the company like a private equity fund, look for companies undervalued for whatever reason, buy them, cut all possible non essential costs, put above inflation prices up each year drive sales aggressively, increase overall recurring revenues, lower costs, increase overall EBITDA, increase the value of the stock and company. That is it, if you think he will suddenly wake up and think he's been doing it wrong all these years and change, your dreaming. He is old though, in his 70's, he could retire or have health issues, but that does not mean they would not just find someone else to run the company the same way. So if your essential or waiting for a payout fine, if your non essential can be rocky roads ahead.

What puzzles me, is how Hock will handle the VMware partner channel which is at least 10x what Broadcom has, and is really the driving force behind a lot of our sales. I've heard Hock is not a fan of the channel and thinks the margins they ask for on deals, are not worth the effort they put in. If he starts playing games with them, I could see them start switching customers to other platforms quickly, which was already happening with the cloud.

Cisco does that kind of concert sh-t as well. I guess they can be next on Hock’s hit list.

I am not in denial about them cutting. But I don't think it will be 30k people or whatever some have said in the past. CA and Symantec both were dead when they got bought. VMware could be profitable if they got rid of the bloat and some of the BUs that made zero sense to buy. Why do we need to do a private concert of Fallout Boy when we couldn't even get a band for Explore? That's the type of sh-t that needs to stop.

Denial is a river in Egeeopt.

All politics to curb attrition. Once acquisition goes through, nothing stops them from doing it again. After all, they may not acquire another company for years now and by then people will forget

This time it will be different, don’t deny it. To quote Hock

“Denial is the most predictable of all human responses. But, rest assured, this will be the sixth time we have destroyed it, and we have become exceedingly efficient at it.”

Let the carnage begin!

"Broadcom tries to reassure VMware customers and employees"

No one from VMW or broadcom has tried to reassure me about my job. Not even once.

Lessons learnt by employees: GTFO ASAP or live the uncertainty of being axed or kept while struggling retaining customers

The most expensive part of any company are cost of staff and buildings. You don’t double EBIDTA in three years by increasing licenses and be nicer to customers. Something got to give.

If Hock was truly going to change his scorched earth acquisition ways, there are many many things he could be doing to reassure employees and customers of the opposite. The fact that the most he can do is put out some generic corporate statements, and a few videos of clearly depressed employees, saying explaining how they love working at Broadcom, signals otherwise

The EBIDTA number and Hock's psychopathic disdain for WFH should sober us all up.

Playing this stupid rationalization game about Hock changing, and doing things differently will leave you mentally and emotionally unprepared for whats about to happen.