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Nearly half of VMware's customers already have to spend more to access the same features

Civo has released new research revealing significant customer dissatisfaction following Broadcom's acquisition of VMware, finding that nearly 70% of customers are currently expecting a price increase. 

Since Broadcom's acquisition of VMware in November 2023, there have been an array of changes to VMware's licensing policies, hindering the interoperability and multi-cloud functions for many customers. 48% of respondents, made up of 1000 current or recent VMware users, now had to spend more to access the same cloud features they had before the acquisition.

Among those who have faced price increases, nearly half (48%) reported their costs have doubled. Over a quarter (30%) have seen a fourfold increase, and 15% have experienced a tenfold surge in prices.

In addition to the financial strain, customers are also facing operational challenges. 45% stated that their organisation can no longer operate with the same agility. Reflecting growing dissatisfaction, there has been a 12% increase in customers looking to switch providers post-acquisition.

Mark Boost, Civo CEO, said, "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."

Published Tuesday, July 09, 2024 9:39 AM by David Marshall
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