Life’s Too Short for Broadcom: Navigating the FinOps Landscape Post-VMware Acquisition


The finalization of Broadcom’s $61 billion acquisition of VMware on November 22, 2023, marks a significant shift in the FinOps and cloud management sector. Given the history of workforce and investment reductions following such large-scale tech mergers, VMware users, particularly those reliant on tools like Aria and Tanzu CloudHealth, are justifiably concerned about potential disruptions.

Know the History and Prepare for the Future

VMware has been a large player in virtualization and cloud infrastructure management, playing a pivotal role in cost optimization and resource efficiency. Its suite was an instrumental first-generation solution adopted by many FinOps professionals for monitoring cloud spending and beginning to ensure financial effectiveness. However, this acquisition introduces uncertainties that require proactive strategies.

The Road Ahead for VMware Customers: Monitoring Upcoming Changes

As the Broadcom-VMware saga unfolds, customers are understandably apprehensive about what lies ahead. This acquisition, while bringing potential for integration of diverse technologies, also raises concerns about the future of VMware’s offerings and how they will fit into Broadcom’s broader strategy.

Restructuring and Streamlining: VMware customers should prepare for shifts in product focus and support structures. Historically, Broadcom’s acquisitions have led to changes in branding, support quality, and investment in innovation. VMware’s strong footprint in enterprise IT and cloud infrastructure could see alterations in its roadmap to align with Broadcom’s business model. In fact, since the merger, Broadcom has already divided VMware into four divisions: the Tanzu Platform Division, the VMware Cloud Foundation, the Application Networking and Security Division, and the Software-Defined Edge Unit.

Price Stability and Negotiations: Broadcom’s CEO, Hock Tan, has assured stakeholders that there will be no price increases on VMware products. However, with what we know of past acquisitions, it’d be prudent to stay skeptical. Negotiating favorable terms and ensuring price stability in a post-acquisition environment will be paramount for users tasked with managing budgets and optimizing costs.

Strategic Partnerships and Ecosystem: The integration of VMware into Broadcom will likely impact its existing partnerships and the broader ecosystem. Customers should closely monitor any changes in strategic alliances that could affect their current deployments and future technology choices.

Backing up these concerns, a recent Forrester Research blog post “WMware Customers: Brace for Impact” has sounded a clarion call: “Don’t hold your breath on a true success story in which VMware remains unaltered and its own independent entity. Do expect price hikes, degraded support, and a VMware with a more diluted value prop.”

VMware in the Broadcom Era: Building a Proactive Response Plan

As we continue to monitor the developments of this acquisition, understanding its impact on the FinOps landscape and preparing for a range of outcomes will be key for VMware customers. The future might hold challenges, but with proactive planning and strategic thinking, businesses can navigate this transition effectively. Below are some key items to get you started:

Proactivity with a Migration Blueprint: Prepare for potential transitions by developing a robust migration plan. This should include:

  • Involvement of Cross-Functional Teams: Engage stakeholders from various departments to ensure a well-rounded perspective.
  • Thorough Assessment of Features and Dependencies: Understand the full scope of your reliance on VMware products and identify critical functionalities that must be preserved in any transition.
  • Risk Assessment and Resource Planning: Evaluate the potential risks and the technical, time, and financial resources required for a smooth transition.
  • Phased Migration Approach: Implement the transition in stages, allowing for adjustments and minimizing disruptions.

Scouting for Stable Alternatives: In light of the uncertainties surrounding Broadcom’s future plans for VMware, it’s wise to explore other vendors. Prioritize those who demonstrate a commitment to innovation and customer-centric development, like CloudBolt, which offers next-generation capabilities, robust innovation, stability and agility in an evolving market.

Open Communication and Vigilance: Keeping an open line of communication with Broadcom and staying informed about their plans for VMware will be essential. Customers should engage in discussions about product roadmaps, support commitments, and how their specific needs will be addressed post-acquisition.

Adapting to Market Dynamics: Stay abreast of the developments in the FinOps and cloud management space. Be prepared to adjust your strategies in response to Broadcom’s management decisions and the evolving technological landscape.

Align with Visionaries: Align with partners who share your vision and commitment to cloud financial management. CloudBolt, for instance, stands out as a partner offering consistent, agile, and innovative solutions, well-suited to navigate the uncertainties of post-acquisition market shifts.

Looking Ahead with CloudBolt

As the cloud financial management realm undergoes these significant changes, remember that forewarned is forearmed. By being proactive, staying informed, and partnering with reliable vendors like CloudBolt, you can ensure that your cloud strategy remains resilient and adaptable in the face of industry upheavals.

In these uncertain times, CloudBolt emerges as a steadfast ally in the FinOps domain. We offer unwavering consistency in focusing on customer-centric, agile development to stay ahead of market demands. If you’re contemplating a shift from your current solutions, CloudBolt promises an uninterrupted, stable partnership in navigating the dynamic cloud strategy landscape.

Ready to Explore Alternatives?

CloudBolt enables organizations to gain financial clarity, eliminate wasteful spending, and deploy preventive controls so that they can find true FinOps success. The results speak for themselves – our customers report reducing manual financial processes by 50% or more and actualizing substantial savings within 3-6 months of deployment.

Book a demo today

(And after seeing what CloudBolt can do, you might just conclude that “Life’s too short for Broadcom.”)

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