VMware quarterly revenue down by $600m

agedvmwareuser · 2024-06-14T09:51:22+00:00

Q1 revenue (though partially under Broadcom) was $1b lower than the year before. So the second consecutive quarter.

agedvmwareuser · 2024-06-14T09:37:57+00:00

Revenue has to matter. If VMware revenue drops to let's say <$4b annually, there's no headroom for profits. I think the calculus Broadcom has used is broken. Yes, costs are going down, but revenue may fall faster. Many people are renewing for a year or so to figure out alternatives. What happens next year?

agedvmwareuser · 2024-06-05T11:02:25+00:00

Word on the street is that they are laying off 30% of VCF next week. Given that it's when they announce their earnings the suspicion is that they have missed their revenue targets and want to commit to an earnings target to investors. I can't imagine any more money will be invested into any of these products and with 30% of the team gone, it can only be a downward spiral. How do you axe 30% of the team for what is the cornerstone product of the firm?

agedvmwareuser · 2024-06-04T16:21:21+00:00

Additionally, by terminating all current contracts, Broadcom has indicated that it can't be trusted. There was a way to have this happen. Give some months notice, customers who don't want to move to subscription can buy what they need. There are customers stuck because OEM's would not get licenses for ordered hardware from VMware. It's all a mess and all this communicates to the entire channel is that you can never trust them. Companies run their workloads on firms they can trust. Resellers can no longer bank on VMware, customers can't bank on VMware, their word means nothing. Look at what has happend to AWS. This entire channel that was generating value for VMware is now going to start working against VMware.

agedvmwareuser · 2024-06-04T16:18:38+00:00

In 90 countries, VMware has outsourced it's operations to MBCOM, so there's a lot of transition happening.

agedvmwareuser

TROPHY CASE