In November 2023, the cloud computing technology provider, VMware, was acquired by the global software provider, Broadcom, in a move to build out its multi-cloud strategy.
The $69bn acquisition has already had a huge impact on the cloud computing industry in the UK, which is now operating under Broadcom.
One of the biggest shakeups following the acquisition saw Broadcom significantly cutting its UK supplier partners. As a result, many customers have been left unclear about who their suppliers are and are unsure where to turn to for support.
A new study by the IT service provider, Redcentric has revealed almost half (43%) of organisations believe they may need to change their VMware partner to receive on-going support following the acquisition.
The study of 1,000 organisations who currently use VMware1, found more than a third (38%) have a licence agreement that expires in the next 6 months. Of those whose agreement is expiring soon, almost a quarter (23%) said they are considering moving away from using the technology completely, due to concerns around support from their supplier.
A huge majority (97%) of organisations surveyed, said that they have been impacted in some way by the acquisition. When it comes to the type of support customers say they are lacking, 17% said that they didn’t have the full VMware feature set when the acquisition took place, and they now need support in getting the most benefit from the technology.
Kieran Brady, Sales Group Director at Redcentric comments: “It is understandable to see the majority of VMware customers expressing such worries about the lack of certainty following the acquisition, and that they are unclear what the capabilities of their existing supplier will be as the partner program is replaced.
“In order to capitalise upon these changes by Broadcom, it is vital that organisations are guided through these changes clearly and strategically, with ample support so that they maximise the significant increase in functionality that Broadcom are offering as part of their new offering to the market.
We at Redcentric strongly believe that there is even more to be gained by customers retaining and growing their VMWare estate and capitalising on the new functionality offered by Broadcom. By capitalising on the already great strengths of the VMWare product set and by using the additional capability offered I believe customers can deliver far more value to their own customers, users and organisations by embracing this change in our market.
“As one of the 7 remaining partners of VMware in the UK, we are dedicated to providing this support to our customers, and would urge anyone who is unclear on what the acquisition will mean for them, to reach out to our team.”
