Following the acquisition of VMware, Broadcom established three pillars for its new strategy: simplifying the portfolio, focusing on added value, and improving the ecosystem.
We previously discussed the simplification of the portfolio. For Cloud Service Providers like Fundaments, this means VMware Cloud Foundation is the only licensed product available. All individual products that VMware developed or integrated through acquisitions are no longer available separately. Everything is now part of VMware Cloud Foundation, with a few optional add-ons for networking & security, Tanzu Services (for K8s), Disaster Recovery, and Private AI services. This combination of VMware Cloud Foundation and add-ons has made choosing a license straightforward.
But what does this mean for the technology: have any features been discontinued? The answer is no; only the end-user computing division (Horizon View and Workspace One) was sold to Omnissa and is therefore no longer part of the program. Otherwise, the new product composition is a complete package that includes all VMware components. This immediately highlights the strategy of offering added value: because all options are "switched on," it is possible to provide much more value on top of the basic virtualization technology that VMware introduced with vSphere. And yes, this complete set of products has been repriced. Choosing only the basic functionality is no longer commercially attractive, forcing users to consider the added value. The Swiss Army knife is no longer just being used for cutting; it can now be used for all its other functions as well.
This forced availability of functionality also introduces some complexity. If you were only ever using the basics, adding value also requires more knowledge and expertise. And this is the final pillar of the Broadcom strategy: leverage the ecosystem. Broadcom recognizes Cloud Service Providers (Premier and Pinnacle partners) as expert partners when it comes to using the VMware product portfolio. The simplification of the customer approach has resulted in VMware Sales focusing on strategic accounts. For all other customers, Cloud Service Providers are being positioned as expert partners who can guide the implementation of VMware Cloud Foundation products.
This development is causing a redistribution of the market: VMware products will be used more in market propositions, resulting in a more powerful response in the Private Cloud domain. Let’s be honest: comparing a Private Cloud solution that only uses vSphere virtualization technology against hyperscaler infrastructure has become a discussion about costs, not value. It will therefore lead to some parties leaving if they are only looking for basic virtualization, but I believe the Private Cloud segment will accelerate its conversion to a more specific type of Cloud that delivers significant value—think of concepts like data migration, ransomware protection, data and database services, and Private AI. All of these can be realized with the Swiss Army knife that is VMware Cloud Foundation.
In the journey Fundaments is taking with its customers, developments are already underway that specifically call for VCF components. Our sovereign Cloud based on Cloud Director, with linked firewall and network segmentation and integrated failover, is one such result. But we are now in the midst of a new generation of propositions that will emerge from this. I will elaborate on this in the next blog post.
Want to know more? Our Cloud Experts are happy to help. You can reach them directly by calling 088 4227 227 or emailing info@fundaments.nl.
Next week, part three of this blog series by Larik-Jan will be published: ‘Cloud: the journey that requires a guide'.
