It’s confirmed. Broadcom is acquiring VMware. This is just the latest of many attempts at diversification by Broadcom by moving into the enterprise software space. VMware is one of the most widely adopted technologies used by organizations around the world. But what does the acquisition mean for VMware customers? And more importantly, what actions should you take to prepare in the coming months?
In plain terms, VMware customers should prepare for considerable change to their current vendor relationship. Broadcom has publicly stated that it runs acquired software organizations differently from how they were previously operating to create a larger impact in terms of financial returns. Broadcom acquired CA Technologies in 2018 for $19 billion and customer experience degraded significantly. There were increases in pricing and audit activity, as well as weakened support and restricted development and innovation.
So, what can you do to prepare for the VMware acquisition? It’s important to establish a foundational view of your VMware investments in order to effectively position your organization for success in these uncertain times:
- First, get a definitive view of your VMware inventory and contracts. You’ll need to gain an understanding of your current licensing and any commitments from VMware on their roadmap.
- Then, if you have a contract beyond this year, now’s the time to negotiate opportunities to void the contract if current stipulations or details are not met or if prices exceed a certain threshold.
IT asset management (ITAM) software like Flexera One ITAM can help you with these crucial actions of achieving a baseline and negotiating effectively.
Flexera One ITAM’s comprehensive data for licensing allows you to achieve a baseline by giving you the world’s most accurate inventory, usage and licensing data. We do this by accessing our app recognition, SKU and product use rights libraries which all help to gain a better understanding of what you have in a clear and easy-to-understand user interface.
Next, Flexera One ITAM’s licensing and consumption data across vendors gives you the ability to negotiate effectively with all of your vendors, including VMware. We’ve helped our customers save 30 percent or more on contract negotiations and are the trusted source of truth when entering the negotiation process with all your top vendors.
The acquisition of VMware doesn’t have to be daunting for your business. Click below to learn more about how Flexera One’s IT asset management tool can help you maintain control of your organization’s assets and budget in the midst of this major acquisition.