Look at all the posts here, this place is a mess! Are any of the products growing? Even with substantial cuts, Hock still needs to make sure the core products keep selling, and more than they have. How does he do that? Just slashing costs isn't going to be enough to recoup the 69 billion.
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Hock doesn’t make mistakes.
The grass is always greener where you water it.
For the sake of Broadcom and the new VMware, some of you folks could probably find a different job and be much happier. Worry about what you can control, not about what you can't control.
For everyone else, let the next chapter begin.
Will we get a Billy club to start working over our customers?
Hock is an expert in recognizing opportunities to make serious money. His playbook with VMW is way different than how the current flock of people run it. He will use cut throat and sleazy tactics to make people pay him because he knows that it's extremely difficult for many of these people who are vendor locked in to migrate away.
On the other hand he will cut 50-60% of the current staff and outsource a lot of the units with huge cost savings. Expect VMW to become a cash cow soon enough. But also expect VMW culture to become exactly like Broadcom - just essentially a cut throat business.
"Hock apparently under-estimated the concessions that the Government Regulators demanded, but once he has control of VMW his team will recoup the loss due to those government restrictions but cutting costs, etc."
What were these concessions and which governments are we talking about?
Hock apparently under-estimated the concessions that the Government Regulators demanded, but once he has control of VMW his team will recoup the loss due to those government restrictions but cutting costs, etc.
Well if you think in the past, especially during 2018/2019 VMware was really profitable... then all the bad investments, acquisitions, overhirings come and a lot of the profitability got lost but it will be very easy to recover it.
While the rest of us are living our best lives, DEI is living rent free in your head
I will re-share this comment I made on an earlier post last week. I am sure that Broadcom will still do very well financially from VMW's core business, but man is it gonna be a brutal fight with customers getting there. And to be honest, there are several customers who really deserve to get the screws put to them after how they've treated VMW for years (I am looking at you, nearly every Globals account out there). But I do feel bad for the commercial, mid-market, and small enterprise customers who often have a really small team of good people who deserve better. The good news for them is, their people are smart and their environments are manageable, so they can move away much more easily.
"I wonder if Hok truly understands the pile of garbage that he is buying, I mean really the true depth of fragile products, shoddy record keeping on contracts and licenses, the multi-billion dollar backlog of unspent HPP and SPP funds, and a customer base that is increasingly finding their way to the exits. The skeletons in the closet are not small in number, but are grotesque in form. No doubt Hok has a plan for cutting masses of fat and spiking the revenue, but his plans are inevitably based upon assumptions that he has made, which in turn are based upon representations from VMW executives and senior leadership. And it is those representations which can be wildly inaccurate."
Yes, he did. Get out while you still can. Give us a cool 1B exit cost that we can spend on DEI in one quarter.
Products are growing and the company is profitable. You just have to open your eyes to see it. Read the financial reports from the past two years of quarters.
If you go into an argument with bad faith, you're going to find bad answers.
And you don’t need any marketing when you sell a product customers are addicted to… you just need bàlls of steel.
"Think about the options, think about the legacy infra you can control and milk for many years to come. VMware will still bring in $10BN per year just on vSphere"
BINGO. This is Hock's Imvestment Thesis... Nothing else matters.
I honestly do not think this is true. Vmware is profitable. As profitable as the biggest shareholders and vulchers would like???? NO
Could it be leaner? YES
Does Vmware employees love the company? YES
I think what's happening here is that people are panicking and worried that the company that they be no more; in such a brutal fashion; hence so much interest. Fear and loathing in broadcom 😶🌫️ causes threads like these?????
This is an interesting bit. Someone tally who got mentioned the most by Nvidia as a customer. Guess who is at the top this quarter?
Then, guess who is competing with Nvidia for the AI market in the future.
If Hock saw this coming, I will call him a genius. If not, he just get lucky pretty often.
No he didn’t VMware own the on prem DC, the SDDC. That gives him significant options and control of in prem options. It’s all about the VM And the enterprise who still run approx 90% of their workloads on prem and of that workload 80% is running in a VM on VMware.
Think about the options, think about the legacy infra you can control and milk for many years to come. VMware will still bring in $10BN per year just on vSphere.