So Broadcom is basically just milking VMware until it completely dies? I guess you should always consider the risk of a company buying a product you use and then doing this
VMWare has been dying a death of 1000 cuts for years. It's been passed around to now the third owner. They created an entire market and have been watching it erode away.
This is exactly the problem with optimizing metrics though. It seems like they’re getting more money from less customers but it puts them at might higher risk that those big customers will churn and tank the company which also increases as the price goes up as it will eventually hit a point where they can find something cheaper.
Yeah but how does it make any business sense for Broadcom to be doing this? They could have raised prices 100% and fewer people would flee and they'd make more money overall. 1,000% price raises are just plain extortion.
If the action of a company doesn't seem to make sense, ask yourself: could you imagine an incentive structure within the company that could lead to such actions?
Considering half the comments are “Proxmox” and “Virtualbox/Parallels” are so much better anyway, I’m guessing most commenters in here are extremely naive and not aware of the IT landscape.
This is the classic "golden goose" strategy. Why wait around all week for steady returns when you can just rip the thing open and see what you can get for the internal organs.
Mathematically if they can extract say 1.5 times the money they used to buy something in 3 years. It is a good deal for them. And even better if they can extract more money beyond those 3 years and then sell what is still left to reclaiming bit more money. Making 15% a year on investment and it fully paying back is not bad move.