Customer Discontent with Broadcom Sparks VMware Migrations to Nutanix
“Negative” views of Broadcom driving thousands of VMware migrations, rival says
Ars Technica
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Following Broadcom's acquisition of VMware in November 2023, customer dissatisfaction has led to significant migrations from VMware to Nutanix. Nutanix CEO Rajiv Ramaswami reported that approximately 30,000 customers have switched platforms, citing issues such as rising costs and reduced support for small- to medium-sized businesses.
- 01Nutanix claims to have attracted around 30,000 VMware customers due to dissatisfaction with Broadcom's strategies.
- 02Broadcom's acquisition has made VMware products more expensive and less accessible for small- and medium-sized businesses.
- 03Nutanix's adoption is reportedly strongest among mid-market customers.
- 04Western Union is among the notable companies migrating to Nutanix, moving 900 to 1,200 applications.
- 05Nutanix's recent fiscal quarter saw its best new customer additions in eight years.
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Customer dissatisfaction with Broadcom's management of VMware has led to a significant migration of users to Nutanix. Following Broadcom's acquisition of VMware in November 2023, Nutanix CEO Rajiv Ramaswami announced that approximately 30,000 customers have transitioned to their platform. The primary reasons for this shift include increasing costs, mandatory product bundling, the elimination of perpetual licenses, and a reduction in support for small- to medium-sized businesses. Broadcom's strategy has narrowed VMware's focus to larger enterprise customers, making it less viable for smaller firms. During a recent press briefing at Nutanix's .NEXT conference in Chicago, Ramaswami highlighted that the adoption of Nutanix's hyperconverged infrastructure platform has been particularly strong among mid-market customers. Notably, Western Union has been migrating 900 to 1,200 applications over the past six months, seeking better IT support to enhance customer focus. Despite having a history of good communication with Broadcom, Western Union faced challenges in their partnership, prompting their shift to Nutanix.
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The migration of customers from VMware to Nutanix indicates a shift in the virtualization market, potentially leading to better service options and pricing for small- to medium-sized businesses.
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