VMware's in court again. Customer relationships rarely go this wrong
- I was running about 1000 machines on VMware in my previous career. It was always a love/hate relationship with them. We were able to achieve a lot of our goals using VMware and it was hard not to be ecstatic about the results. At the same time, they were always a nightmare to deal with, the software was buggy and support wasn't great.
I always dreaded renewal time because it was normal for them to use it as an opportunity to extort us. Microsoft was a breeze in comparison. It's funny because Microsoft always had such a horrible reputation. I don't know if I was just so abused by VMware or what, but Microsoft was just easy. We had an annual true-up date and we always knew where we stood with them. We reported our numbers and that was it. No surprises ever and there was never an issue if we didn't report any growth. VMware was always pulling some kind of shit and was absolutely determined to push us over budget every time.
by wkat4242
11 subcomments
- The bigger issue is, if you're refusing to honour a contract as a vendor, not only do you risk a lawsuit like this one. But more importantly, who is ever going to sign up for another contract with you? You just proved it isn't worth the paper it's written on.
Unwritten terms like "valid until I decide to tear it up haha lol" are not generally appreciated by companies that depend on your stuff for their business. Of course you can extort your existing customers until they manage to move away but basically in the longer term you're suiciding your entire business.
- The state of software companies is pretty terrible. I have been on the acquisition side as well as the development / end-user side and it’s mind-boggling knowing the exorbitant costs with bare minimum value delivered, yet companies just keep paying whatever they’re told it costs, until it’s comically astronomical and the customers have to tell them to get bent. Yet still, software vendors keep changing their licensing structure until it meets that comically astronomical figure and pushing customers away.
Enterprise software licensing, support contracts, and technical account managers (TAMs) often run into hundreds of thousands or millions annually per organization. Yet, in practice, support tickets go unresolved or ignored, even for large clients.
The software quality of our most expensive products is extremely poor and unreliable, almost across the board. Many products suffer from bugs, outdated features, or incompatibility issues that disrupt operations. In development roles, this means wasted time on workarounds, custom patches, or integrations that shouldn't be necessary. For a non-small organization, this scales up to significant productivity losses and hidden costs in overhead.
These companies actively alienate us, the customer, through their business practices. Changes like aggressive licensing shifts (e.g., moving from per-core to per-employee models) force reevaluations and migrations and eroding trust (i.e. Oracle with Java, VMWare fiasco). This isn't isolated—it's a pattern where short-term revenue grabs risk long-term relationships, yet companies seem unfazed.
This jacks the entire ecosystem up. These practices stifle innovation by locking customers into suboptimal tools, increase overall IT spend industry-wide, and contribute to employee burnout in dev and ops teams.
It seems like it’s a race to the bottom. The strategy is to create an ecosystem with high switching costs and vendor lock-in. It just doesn’t seem sustainable, yet- it keeps truckin’ along.
- I know someone (I'm not going to say who - too many sue-happy people are accused here) who was using VMWare at work, and they decided to switch to virtualbox because they trusted Oracle more than Broadcom. Oracle has long has a reputation of being licensing jerks, but they are still trusted more than Boardcom.
by beaviskhan
0 subcomment
- We ran 100% of our workloads on VMWare this time last year. We'll be at 0% this time next year. We were heading that direction over the long term anyway, but the Broadcom shenanigans made us double down on that effort. They may actually be more unpleasant to deal with than Oracle, which is something I would have thought to be impossible.
- In a past life in the mid/late 2000s, I did 10GbE NIC drivers for a small IHV. VMWare was by far the most awful vendor to deal with. They had mandatory certification testing which was required to distribute the driver. Their tests were so much worse than MS WHQL. There was invariably something broken in their tests that we had to work around. Each time this happened, we had to go through their support (And pay for the privilege) to tell them their tests were broken and to give them patches to fix it. This would happen pretty much every driver release, and we would end up dealing with a different person each time.
My favorite thing about leaving that job was never having to deal with VMWare ever again.
- This is the ghost of Charlie Wang haunting the software industry. Computer Associates was notorious for this kind of licensing shenanigans. Guess where Computer Associates is now? A new generation of IT departments are discovering the Long Island wiseguy approach to licensing.
by walterbell
1 subcomments
- https://www.forbes.com/sites/stevemcdowell/2025/08/31/broadc...
> Many mid-market and regional operators view the new [subscription] structure as untenable and are actively exploring alternatives.. Nutanix emerged early as the leading competitive alternative to VMware.. over 2,700 new customers.. driven by organizations fleeing VMware's new pricing model.. [including] more than 50 Global 2000 companies, representing major enterprises willing to undertake complex, multi-year infrastructure overhauls.. With VMware serving approximately 200,000 customers globally, Nutanix sees most of the migration opportunity still ahead.
- To Broadcom you’re not a customer, you’re a mark, a patsy, stooge, a _victim_. Their aim is to establish exactly what they can get away with, how far they can abuse you, before you’ll just walk away.
- Remember: Broadcoms’ (the non-chip part of it) business model is to buy tech companies in long term decline (VMware: check) that have a significant locked in customer base (VMware: check), slash development and support while raising prices.
They extract as much cash out of the decaying corpse as they can, and then discard it.
They were actually fairly open about this to investors when they bought VMware .
- > As The Register's European editor wearily remarked: "Search the site for Simon and VMware. We've got pages of this stuff. Go. Look."
In case anyone else was wondering who "Simon" is, I'm pretty sure it refers to this editor: https://www.theregister.com/Author/Simon-Sharwood
- Kind of funny to see businesses screwed over by "lifetime" deals.
by andrewstuart
0 subcomment
- Most startups struggle to get any clients and would lavish love on any the could.
Imagine being a company so big that your strategy is to kick your clients in the teeth then throttle revenue out of them.
- You can either buy our product voluntarily or we can make you pay for it anyway.
by whalesalad
4 subcomments
- TIL VMware Fusion is free now. https://blogs.vmware.com/cloud-foundation/2024/11/11/vmware-...
- VMware Fusion's graphics drivers suck harder than a Dyson. For the love of god, I just want to play some games without rebooting to a native Windows environment. I'm not even asking to run, say, Crysis, or something... I guess my days are numbered as an x64 Mac user but let me at least go out with some dignity.
by b3lvedere
1 subcomments
- Perpetual licenses are eventually very bad for business if nobody pays for support. Nobody pays for support if they remotely think they will not need it.
Shit starts hitting the fan when you actually need excellent support and get a (huge) invoice.
People would care a lot less if Broadcom had very gradually increase prices over 5 years or a decade, stopped support on version 7, stopped development on version 8 and gradually changed everything starting with version 9, but they decided in all their wisdom they wanted their investment back ASAP instead of waiting.
Maybe they should have looked at the licensing and support models Veeam uses.
by alexvitkov
6 subcomments
- Play stupid games, win stupid prizes.
If you need 40,000 servers to keep your business running (which you don't, your ~3-8 million weekly transactions can be processed on 1 computer, but whatever), hire people that will work on you, and whose paycheck depends on keeping those computers working, to keep those computers working.
Game theory arguments like "they wouldn't screw me over because other people won't want to do business with them" don't work when the other party is trying to maximize quarterly earnings, and their long-term thinking is in the order of ~2 years.