Thread regarding VMware layoffs

The channel at BC is dead. BC will extort the top 2000 customers and ignore all else.

What is the future of the channel ?

All this BC said they would NOT do - while they were trying to close the deal

You are so cute, I’d like to give you a hug.

I think Hock is having a challenging time saying FU to customers, partners, and employees so much. Poor overworked guy.

Broadcom is taking a big gamble with this move. It could backfire on them.

If customer is happy to take direct then it’s their call not the partner.

Their call? Hock is taking away their ability to make that call. Don't like it? He don't care.

That's a pretty big chunk of annual VMware revenue that's going away for us.

And going right into the AVGO stock price.

You know the pillaging has just begun…. Hold on to your women and children, it’s going to get messy.

What you do at is you take the BOM from the customer and bring it down to the VMware representative?

Hock will send his henchmen over for good measure to rough you up and make sure you never talk to VMware again.

Looking forward to month 2…. Maybe he will start selling to North Korea.

Hock Smash!

“That's a pretty big chunk of annual VMware revenue that's going away for us.”

Like many partners. You probably never deserved it anyway. Many partners just pass the license keys through the books with value add, just taking a bit of margin cream for very little risk.

If customer is happy to take direct then it’s their call not the partner.

Do we honestly think they're going to say "F-you" to a huge number of smaller, local/regional boutique VAR partners just because they made > $500k last year in product?

Yep! Octane is saying F-you to thousands of small and medium customers. He doesn't want to sell to them, he doesn't want to support them, he doesn't want to think about them.

Octane wants the top 2000 customers by spend and everyone else can go do something else, we don't care. That's been Octane's attitude even before VMW.

All this BC said they would NOT do - while they were trying to close the deal.

Now deal is closed and off they go - a deceitful company!

Reminds me of an old joke, someone said about companies like this: when you shake their hand, you have to check your fingers and make sure you get all five back!

"This article isn't about the $500k cut-off. It's about Broadcom taking the top 2000 customers direct and cutting out the channel and saving the discounts for themselves."

Yeah, I get that. Believe me. I'm at a global VMware partner now and we are losing a very large customer that is in the new VMware/BC "strategic" tier. That's a pretty big chunk of annual VMware revenue that's going away for us.

This article isn't about the $500k cut-off. It's about Broadcom taking the top 2000 customers direct and cutting out the channel and saving the discounts for themselves.

But to answer your question yes I do think that Broadcom would say FU to the smaller partners. They expect to come out ahead by cutting the costs of supporting them and focusing on the top 2000 customers that they just stole.

“I'm not sure where CRN keeps quoting this "insider" source that throws out that $500k revenue cutoff”

Insider source = post from the layoff.com

I'm not sure where CRN keeps quoting this "insider" source that throws out that $500k revenue cutoff. I'm former VMW, at an aggregator now, and we've been on all the same webinars and have read all the same docs that every other channel entity has had access to since this stuff started coming out. Every document and speech we've heard from VMware has indicated that if you're an ACTIVE partner today, you're expected to be invited to the new program. There has NEVER been a revenue number stated or even implied. Do we honestly think they're going to say "F-you" to a huge number of smaller, local/regional boutique VAR partners just because they made > $500k last year in product?

Fun!