Thread regarding VMware layoffs

Services Axed?

Heard from a well-placed source at a large VMware partner (doesn’t mean that person is in the know, just that they are in a higher-level position there) that “all services are getting the axe”. Now, we know that Hock has said that Broadcom will be investing in services, but that could simply mean partners (and likely does, to a large extent, anyway).

So the question is, how much of VMware’s PSO business will be maintained in-house (sales, delivery, PMO, account size/segments, etc), and how much will be shuffled off to the partner community?

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| 3741 views | | 11 replies (last September 28, 2023) | Reply
Post ID: @OP+1oPIojk2

11 replies (most recent on top)

PSO is a low margin BU (30s/40s are low.. yes)
VM has been reselling partner resources for long (as they are a lot cheaper and we can't compete with them with our prices)... So it makes sense to sell the whole PSO to a disti/partner (or break it to multiple)...
This means that resources would move (Sales/Engineers/CSMs/etc) but will be under the management (mercy) of the new father!

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Post ID: @nuv+1oPIojk2

FWIW - I have no idea what PSO is (professional services org?) as I’m not VMware but Symantec, but Hock sold the Symantec managed services business to Accenture after our acquisition. While the margins were great for what it was, it didnt scale unless you add more bodies, which is not what Broadcom does.

Make of that what you will.

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Post ID: @bkn+1oPIojk2

I’ve worked in PSO for a long time and costed many customer engagements using internal and partner resources. Financially, using the VMW PS rate card partners can give VMW a 40%+ margin if booked on internal paper. If Hock is looking at the business in depth he’s going to say why not just use partners and pocket 40% for minimal effort. PSO is so top heavy with managers/leads\support who are not billing it’s hard to be a profitable BU. Most successful PS businesses have everyone from VP down billable to be successful. Sadly not here.

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Post ID: @zeu+1oPIojk2

@nul+1oPIojk2 Matt left cus he got a cherry deal to work for his mentor. I don't blame him at all... if your mentor calls, you answer.

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Post ID: @riy+1oPIojk2

Hence why Matt Stepanski left. He knew what was coming.

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Post ID: @nul+1oPIojk2

After more than a decade of front-row observation, I won't defend PSO much (aside from a very few really great delivery consultants that I have worked with over the years) and it is high irony that the buffoon who is the current president of the company came from PSO. However, I will also point out that much of the PSO dysfunction is a natural outflow of the abysmal executive leadership and product QA issues that have plagued the company since at least 2012 (looking right at you, PG). The net, net is that B-team leaders hire B-team players.

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Post ID: @okx+1oPIojk2

I don't know how PSO stays. I have been in tech a long time and VMware PSO is the worst I have ever seen. They look for ways to get out of doing work. The costs are astronomical compared to what they actually do.

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Post ID: @bav+1oPIojk2

It will come as a relief if I lose my job. Corporate America has presented unrelenting mind games and stress leading to cancer, neurological disorders, divorce, etc. I will gladly take my severance, address any lifestyle changes that are needed, and move on. The writing was on the wall when St. Pat G left. Thankful for my time and good luck to all. Don’t bother to turn the light off. You just THINK it’s still on.

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Post ID: @byc+1oPIojk2

Chop chop chop … Hockman is coming for you on Halloween together with his buddy Jason. They know what you didn’t do last summer.

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Post ID: @lrd+1oPIojk2

Let’s not forget Somalia and Liberia , very cost effective.

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Post ID: @dkq+1oPIojk2

There is a strong likelihood that PSO, Customer Success, and GS may undergo outsourcing due to cost concerns, with repeated mentions by Hock about VMware's perceived delivery failures. The upcoming shift in management is expected to have the greatest impact on GS. It has been suggested on multiple occasions that layoffs will primarily affect employees in Ireland and the United States. Egypt and India offer significantly lower costs, making it possible to perform the same tasks more cost-effectively in these countries.

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Post ID: @rfi+1oPIojk2

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