Thread regarding VMware layoffs

PSO impacts overall gross margin

I'm still seeing many posts from PSO people wondering if they're next, what's coming, will there be more layoffs, etc.

I was a senior leader who left BC last year, but who was heavily involved with PSO strategy including being part of the BC integration. What everyone needs to understand is that PS businesses typically operate at a lower gross & operating margins than the product part of the business.

That said, there is a need to have SOME internal PS capability because it's important to have some mechanism to directly assist key customers' adoption and success. However for companies like BC that over-optimize to ruthlessly squeeze every cent of margin out of the business, you can see the incentive to keep in-house PS capability to the bare lowest level possible.

BC is reducing internal PSO capacity because they're optimizing for long-term margin targets. Even though I'm no longer at BC, I'd expect cuts to continue until BC reaches its target equilibrium.

I wish all my former PSO colleagues the best as you continue to navigate life at BC.

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| 2641 views | | 5 replies (last March 16, 2025) | Reply
Post ID: @OP+1jpad9z2a

5 replies (most recent on top)

https://www.ciodive.com/news/broadcom-vmware-cloud-foundation-vcf-partner-program/742603/

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Post ID: @kj+1jpad9z2a

Federal PSO is affected. Majority of work is moving to partners. Nobody is safe. Enventually all of the VMware delivery org will move to partners...including TAMs.

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Post ID: @gh+1jpad9z2a

How many managers and directors have been go so far in the bloodbath ?
It comes down to 80% mgmt and 20% people pretending to do work but really just kissing up ... then there can be no doubt this is a scam

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Post ID: @dc+1jpad9z2a

The problem with VMware PSO is their sales people that are the most useless id--ts that wastes internal and external time on useless circular meetings after meetings without any value. They have no clue how to gather information and produce scope of work, but rather continue on their sales playbook of useless talk and BS.

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Post ID: @db+1jpad9z2a

from the very very beginning, PSO is only kept for Federal use cases. The rest of you lots are heading to the chopping block or South Asia sweat house HCL.

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Post ID: @d3+1jpad9z2a

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