Research highlights customer discontent after Broadcom-VMware deal

Recent research by Civo has highlighted significant customer dissatisfaction and increased costs following Broadcom's acquisition of VMware.

This research indicates that nearly 70% of VMware customers anticipate a price surge due to changes in licensing policies, with many experiencing severe financial strains as a result.

The study, which surveyed 1080 current or recent VMware users, revealed that 48% of respondents reported a need to spend more to access the same cloud features they had before the acquisition. Among this group, nearly half saw their costs double, over a quarter (30%) faced a fourfold increase, and 15% experienced a tenfold surge in prices.

The impact is not only financial. The research showed that 45% of organisations have noted a decline in operational agility. Additionally, there has been a 12% rise in customers considering switching providers since the acquisition.

Mark Boost, CEO of Civo, voiced his concerns about the effect of the acquisition on customers. "Our research echoes what many of us in the cloud space have been hearing anecdotally for the past few months. Broadcom's acquisition of VMware has not been beneficial for customers, drastically hindering the cloud services they had grown accustomed to while leaving many of them in the lurch over prices and services."

"The dramatic price increases and decline in service quality are pushing many to seek alternatives, and many customers are still unsure of what’s next. We believe in a better way forward in the cloud space. One of true open access, where customer requirements are put ahead of shareholders’ demands."

These findings come after significant changes to VMware's licensing policies post-acquisition, which customers claim have hindered interoperability and multi-cloud functions. As a result, many businesses have been faced with a choice between absorbing these new costs or seeking alternative providers.

Since taking control in November 2023, Broadcom's changes have left many previously committed VMware customers reconsidering their cloud service strategies. The current state of customer sentiment suggests that while the acquisition may have financial motivations, the operational ramifications have been profound and largely negative among the user base.

The increase in costs and operational difficulties described in the survey highlight the challenges businesses face when relying heavily on cloud services. The need for cost-effective, agile, and reliable cloud infrastructure is critical, and changes that disrupt this balance can significantly impact business operations.

Given the current dissatisfaction, the marketplace may witness a migration of businesses looking for alternatives that allow them to maintain their operational agility without incurring prohibitive costs. The cloud computing market appears to be at a crossroads, with customer requirements increasingly placing pressure on service providers to focus more on value and less on profit-driven adjustments.

Mark Boost's comments underline a broader industry sentiment that prioritising customer needs over shareholder demands is essential for the future of cloud computing. As businesses evaluate their options, the focus on transparent, predictable billing, and reliable service becomes more important than ever.