Broadcom’s Latest Move Raises Questions About VMware Cloud on AWS

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Broadcom’s recent decision to alter its subsidiary VMware’s distribution strategy has sparked speculation and concern. This move follows a series of changes initiated by Broadcom, including streamlining VMware’s product suite and adjusting its partnership program, which led to confusion and required CEO Hock Tan’s intervention.

In a blog post, Tan clarified that VMware Cloud on AWS would no longer be directly sold by AWS or its channel partners. Addressing rumors that VMware Cloud on AWS was being discontinued, Tan emphasized that this was not the case and that the misinformation needed correction to reassure customers.

Under the new arrangement, customers who previously purchased VMware Cloud on AWS from AWS will now work with Broadcom or its authorized resellers for renewals and expansions. However, customers with active subscriptions purchased from AWS will continue to be invoiced by AWS until their term ends.

Despite Tan’s attempt at damage control, concerns linger about Broadcom’s restructuring of a successful venture. With VMware also offering variants on Microsoft Azure and Google Cloud Platform, the latest changes raise questions about the future trajectory of VMware’s cloud partnerships.