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Long-term value is proven through customer outcomes and partner profitability.
Change is never easy. Since the completion of Broadcom’s acquisition of VMware, we’ve been committed to change. For the VMware Cloud Foundation division, all of these changes were necessary to transform our business to deliver faster innovation that delivers more value for our customers, and greater profitability and market opportunities for our partners. . So what has changed since the acquisition and why will this benefit your organization?
- Business model transition to industry standard subscription licensing
- It significantly simplifies our entire portfolio, go-to-market and organizational structure, making it easier to do business with us.
- Standardization across the ecosystem to drive value through distributors/resellers, cloud service providers, hyperscalers, and technology partners.
Business Transformation: Strategy in One Word – Simplified
In summary, we have completed the transition from selling perpetual software to only subscription licenses. We’ve streamlined what, how, and through whom we sell software from now on. To streamline execution, we reorganized our company around our VMware Cloud Foundation strategy.
First, subscription is the model that all major enterprise software providers currently use. Subscription software is a good model to encourage continuous innovation for your customers. This quarter, like everyone else, we completed a complete transition to subscription software. We quickly turned this transformation into new value for our customers. how? Do you need deployment flexibility? Now you can. When you purchase VMware Cloud Foundation, you get license portability. This means you can deploy on-premises and bring your subscription to any supported hyperscaler or VMware Cloud Services Provider environment whenever you need it. Your license subscription will be retained even if you move. Google Cloud will be the first service to support VMware Cloud Foundation license portability with other hyperscalers and partner clouds. Read Google Cloud’s full announcement here.
What about that portfolio? It makes good business sense for customers, partners, and VMware to offer several products that pack more value at lower prices at the high end and at or below the same cost at the low end. We invest all our R&D investments into fewer products, which is a double benefit for our customers.
We’ve finally welcomed all of our product teams into the VMware Cloud Foundation division. We are now in a position to have a single vision for the direction of the VMware Cloud Foundation platform and deliver a single, integrated offering across all core technologies. We also provide professional services and global support right next to research and development within the same business unit. This allows him to focus on building his one product with the necessary services and support to create maximum value.
Three changes, but a big impact.
Portfolio transformation: Powering the engine of innovation
We are now focusing our innovation engine on VMware Cloud Foundation and VMware vSphere Foundation, along with some very strategic add-ons related to security, ransomware protection and recovery, application platform services, and private AI.
VMware Cloud Foundation helps organizations modernize their infrastructure with the best possible TCO. It is fully software-defined compute, networking, and storage with automated and simplified operations. VMware Cloud Foundation enables a cloud operating model that provides the benefits of a public cloud with the security and performance of an on-premises private cloud.
VMware Cloud Foundation provides developers with a self-service private cloud experience that increases productivity. Development teams can leverage the built-in Kubernetes runtime and self-service cloud consumption interface to deploy infrastructure as code. This enables smooth deployment of business-critical cloud-native applications. IT teams can maintain compliance with security requirements by building security into policies deployed to all clusters.
VMware Cloud Foundation provides enterprise-grade resiliency and security. Customers can seamlessly scale their infrastructure and applications through a hardened platform with built-in resiliency to ensure mission-critical apps are always available. The inherent security built into VMware Cloud Foundation helps significantly reduce the attack surface for lateral threats. Additionally, our disaster recovery and ransomware recovery capabilities help customers quickly and efficiently recover from cyber threats.
Through all of these changes, we never stopped innovating. Here we highlight updates to both the core platform and add-on services that have recently become available or will be delivered throughout the remainder of Broadcom’s second quarter of 2024.
VMware Cloud Foundation Core Platform Enhancements
Infrastructure and application service automation: In response to the growing need from VMware customers to deliver and support next-generation cloud-native and AI-powered applications across private and hybrid clouds, we are announcing three new automation capabilities:
- Data service automation: Currently available, VMware Cloud Foundation provides a native infrastructure automation and management experience for data services. Now IT departments can provide teams with self-service, enterprise-enhanced Postgres, MySQL, and Google AlloyDB Omni (Technology Preview) to accelerate developer innovation, reduce IT costs, and improve data can ensure resiliency.
- Automating load balancing services: Through built-in VMware Cloud Foundation capabilities, cloud administrators can now provide application teams with self-service access to L4-L7 load balancing services. This enables application and infrastructure teams to quickly deploy load balancing when provisioning applications, with minimal load balancing technology know-how or manual ticket creation. These features will be available to support the VMware Avi Load Balancer add-on in the coming months.
- Automation service for private AI: When VMware Private AI Foundation with NVIDIA add-on becomes available this quarter, customers will be able to use the built-in capabilities of VMware Cloud Foundation to set up private AI services and provision GPU-enabled machines for ML workloads. can be automated.
Integrated network operations capabilities: Exclusively available as part of VMware Cloud Foundation, the latest unified network operations capabilities help IT users improve network visibility, gain insight into network performance, and quickly identify network issues. Please help me solve it. These new enhancements are available now. Learn about them here.
VMware Cloud Foundation Add-on Service Updates
Integrated ransomware and disaster recovery: VMware Live Recovery allows customers to protect applications and data from the latest ransomware and other disasters across on-premises and public clouds with flexible licensing that adapts to changing business needs and threats. . VMware Live Recovery integrates existing capabilities from VMware Cloud DR, VMware Ransomware Recovery, and VMware Site Recovery Manager and introduces new features such as enhanced vSphere replication (1-minute RPO) and seamless extension of on-premises disaster recovery. Public cloud with ransomware recovery capabilities. All of this is delivered with a unified management experience and is available through a single add-on subscription to VMware Cloud Foundation, expected to be available in Q2 2024.
VMware Private AI Foundation and NVIDIA: Announced at VMware Explore 2023 Las Vegas, VMware and NVIDIA are working to bring this new add-on service to VMware Cloud Foundation. We have almost reached that goal. An update on solution availability will be announced this quarter. But you don’t have to wait to learn more. Join the team online at AI Field Day 4 on February 21st from 8am to 10pm PST to learn more about the capabilities and emerging features we are driving with the VMware Private AI Foundation with NVIDIA. Get the latest information about your use case.
Transforming the ecosystem: Standardization improves the experience
Broadcom’s strategy is to drive adoption of full-stack VMware Cloud Foundation as the subscription-based private cloud platform of choice for innovation. We will rely heavily on our partners to help us transition our broad customer base to new subscription models and transform their businesses using our private cloud infrastructure. This quarter, we welcome thousands of partners to the Broadcom Advantage Partner Program across all channels to market.
This channel standardizes pricing so everyone knows what to expect, puts all partners on a level playing field, and allows partners to compete on value-add differentiation. This results in a better customer experience. We also introduced a new customer segmentation model that aligns with our simplified portfolio strategy. There are some important things to know about customer segmentation models.
- Partners have opportunities across all segments, including strategic segments.
- VMware will continue to deepen its direct relationships with its most strategic customers to accelerate adoption of VMware Cloud Foundation in these accounts.
It makes business sense for Broadcom to develop close relationships with its most strategic VMware customers to ensure VMware Cloud Foundation is adopted, used, and delivers customer value. However, we anticipate that we will need to address changes to account roles to ensure that both Broadcom and our partners can deliver the greatest value and greatest impact to our strategic customers. And our partners will play a critical role in adding value beyond what Broadcom can provide.
VMware Cloud Service Provider partners help bring VMware Cloud Foundation to a broader range of enterprise and commercial customers and offer it as a managed service. And since not all customers are ready to take advantage of his VMware Cloud Foundation, our thousands of reseller partners will be driving the adoption of his VMware vSphere Foundation. In the corporate segment, we support joint sales with CSP partners. Additionally, our commercial division is 100% owned and led by our reseller partners. This should help reduce channel conflict, which partners have previously said is an ongoing challenge.
Achieving good business hygiene has never been easier
When you buy a company, you look at everything. Broadcom identified what needed to change and, as a responsible company, made the changes quickly and decisively. The changes that have occurred over the past 60 days were absolutely necessary. As we continue to evaluate how to maximize value from our VMware software investments, we understand that the massive transformation and simplification of our portfolio and our business model has raised many questions and concerns. doing. We are actively working with our sales teams and channel partners to help our customers make this transition and encourage them to take the approach that best suits their business.
One thing hasn’t changed: It’s about providing value to you, the customer. You enable us to build and deliver great software. You drive our innovation. The new VMware Cloud Foundation is the platform of choice for deploying private cloud infrastructure that is ubiquitous, flexible, and unified across cloud endpoints.
It only gets better.
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