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Company claims 1k% price hike drove it from VMware to open source rival

206 点作者 elorant5 个月前

20 条评论

rwmj5 个月前
We (Red Hat) are doing great business moving customers off VMware. 20,000 VMs is not an unusual amount for our larger customers. I did a 5 min lightning talk in summer about this: <a href="https:&#x2F;&#x2F;pretalx.com&#x2F;devconf-cz-2024&#x2F;talk&#x2F;SN93LG&#x2F;" rel="nofollow">https:&#x2F;&#x2F;pretalx.com&#x2F;devconf-cz-2024&#x2F;talk&#x2F;SN93LG&#x2F;</a>
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helsinkiandrew5 个月前
Broadcoms policy seems to be to aim for the larger customers where a 10x price rise for a suite of products isn&#x27;t an issue. Charging 10x the price to 10% of your customers isn&#x27;t necessarily a bad strategy for a business.<p>6 months ago on HN: <a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=40452260">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=40452260</a><p>&gt; Steve McDowell, chief analyst at NAND research, told The Register that VMware by Broadcom is “laser focused on high-revenue, high-margin business” and has priced its wares “just below the pain threshold for customers they care about.”
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InsomniacL5 个月前
So many people misunderstand what is actually happening.<p>Broadcom aren&#x27;t hiking the price 10x for everyone.<p>If you previously used:<p><pre><code> - VMWare Vsphere - Cloudify Automation - CISCO ASI Software Defined Network - Splunk log collection - Nutanix Acropolis Distributed Storage - etc.. </code></pre> Then you&#x27;re going to see you vSphere costs jump massively because you&#x27;re only option to buy vSphere now also comes with:<p><pre><code> - VMWare Vsphere - VMWare Aria Automation - VMWare NSX Software Defined Network - VMWare Log Insight - VMWare vSan - etc.. </code></pre> So, if you&#x27;re already heavily invested in VMWare, you might even see your costs reduce.
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perlgeek5 个月前
I work at an IT outsourcing company that also has some VMWare farms (though not sure if we reach 20k VMs).<p>What I picked up is that before the acquisition, price was mostly determined by CPUs on the hypervisor, now it&#x27;s mostly by RAM.<p>Which means we now have to optimize hypervisor hardware to a different licensing model.<p>I don&#x27;t think we&#x27;ve seen 10x price hikes, but it could possible if a provider has optimized hard for a metric that is now less relevant, and&#x2F;or has difference licensing deals.<p>Caveat: I&#x27;ve picked all that up second-hand through the grapevine, I&#x27;m not working with our virtualization farms directly. So not 100% on top of what&#x27;s going on.
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maltris5 个月前
Having been in the field for some time and having some contacts, I must say: 100% of the companies where I get some insights are currently either already building alternatives or reviewing their options with a strong intention to leave VMware behind. And in many cases this is quite a huge task, but certainly doable with the required momentum.
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linsomniac5 个月前
I know VMWare works great for a lot of people, but it was always just a thorn in my side. Almost a decade ago my small company moved from VMWare to ganeti, and we&#x27;ve been really happy with it.<p>At the time we were running a SAN and the small VMWare Essentials license. But managing it with Windows was painful for me personally, and our HP SAN was kind of painful, every year like clockwork it would just stop processing until we had remote hands reboot it. And every year they&#x27;d tell us &quot;Try this firmware&quot; to shut us up for another year, until eventually the product reached EOL.<p>We had been running ganeti in our dev&#x2F;stg cluster for years at that point (and the python.org infrastructure was using it at that time as well), so I decided to transition us to local storage running VMWare and then to ganeti. Doing local RAID array monitoring on VMWare was quite painful at the time, maybe that&#x27;s gotten better?<p>I absolutely love that ganeti has such a good suite of command-line tools for operating. I have a small shell script that respins half our dev&#x2F;stg infrastructure every other day. Our entire critical infrastructure is HA at the machine level, so we don&#x27;t play around with anything like live VM moves, we just do offline moves. I used to do the drbd-based replication and live moves, but the doubling of disk writes and committed disc usage wasn&#x27;t worth it for us.<p>Proxmox is on my radar if we needed to move away from ganeti, but so far we are looking like we&#x27;ll stick with ganeti.
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difosfor5 个月前
So Broadcom is basically just milking VMware until it completely dies? I guess you should always consider the risk of a company buying a product you use and then doing this
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teruakohatu5 个月前
Did Broadcom think the VMware moat was a lot deeper than it is? Or do they think losing small or medium customers is worth it to get 10x more revenue from its largest customers?
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dan-robertson5 个月前
Is <a href="https:&#x2F;&#x2F;www.theregister.com&#x2F;2024&#x2F;12&#x2F;02&#x2F;beeks_group_vmware_opennebula_migration&#x2F;" rel="nofollow">https:&#x2F;&#x2F;www.theregister.com&#x2F;2024&#x2F;12&#x2F;02&#x2F;beeks_group_vmware_op...</a> a better link to use? This article seems to just be a summary of it.
bastloing5 个月前
There&#x27;s no claim about it, it actually happened. Always amazed at companies that extort their customers because it might be too expensive to move off those products. I remember Computer Associates back in the 1980s and 1990s, that was their business model, buy out a company, fire all the engineers, and Jack up license fees. Rinse and repeat. I remember seeing them at unix expo at the javits center, they always gave out the best chachkis
udev40965 个月前
Why not proxmox instead? I have never heard of OpenNebula before
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eigenvalue5 个月前
This doesn’t surprise me. The customer in this case is in the hosting business. They are likely fairly expert at infrastructure and devops and are operating in a super competitive, commoditized, price-sensitive corner of the market. Broadcom probably always expected to churn customers like that. But they knew that for every customer like that, there would be 3 or more Fortune-500 type companies that don’t want to risk any disruption and have big IT budgets that they can divert into covering the increase if they have to. They might even make plans to gradually move away over a few year period, but if they are charging 10x more than before, the profit they make in the next couple years will more than make up for it.
ubermonkey5 个月前
We&#x27;re small, but we abandoned VMWare YEARS ago because (a) our size meant nothing they were doing that was interesting was interesting to us and (b) HyperV was plenty good enough and essentially free and (c) the licensing and support conversation every year even BEFORE Broadcom was just insane.<p>I get it. Virtualization is a commodity now. They&#x27;re trying to squeeze the last serious profits out of the platform, but in behaving this way they&#x27;re absolutely hastening their own exit from the market.<p>Good riddance.
Neywiny5 个月前
I only use it because VirtualBox was being slow and the 3D hardware acceleration wasn&#x27;t working even when I think version 7 said it should. Switched to VMWare and it&#x27;s been almost perfect.
alexvitkov5 个月前
Perfect opportunity to start transitioning from 20,000 VMs to the actual amount needed for most reasonable use cases - 0.
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milesward5 个月前
Seen this dozens of times this year. This is policy from VMware&#x2F;Broadcom.
garganzol5 个月前
Broadcom seems to have a lacking understanding of a business of software. Which is a typical symptom of hardware companies, their brains wired differently.
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zombot5 个月前
Sounds like Broadcom is engaging in some serious enshittification of VMWare. Customers leaving in droves is the appropriate reaction.
fragmede5 个月前
only one?
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tablatom5 个月前
Off topic but if I may. The way people use percentages to express multiples is confusing. A doubling is a 100% increase. So a 200% increase is 3x, and so on. Then at some point we forget about the +1 and 1000% is &quot;10 times the sum it previously paid for software licenses&quot;. Just a pet peeve I guess : )
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