This summary of the video was created by an AI. It might contain some inaccuracies.
00:00:00 – 00:18:01
The video discusses the impact of Broadcom's acquisitions on companies like VMware and PLX, affecting pricing, competition, and customer accessibility. Broadcom's strategy post-acquisition prioritizes larger customers, potentially disadvantaging smaller customers. Changes in licensing models, such as transitioning to subscription-based services, impact customers' upgrade paths. The discussion also touches on VMware's Cloud Provider Program, where increased pricing poses challenges for smaller managed service providers. The discontinuation of free versions of VMware software like vSphere Hypervisor may shift the skill set required for admins. Overall, the video highlights the changing landscape of the VMware ecosystem due to Broadcom's actions.
00:00:00
In this segment of the video, the focus is on Broadcom’s acquisition of VMware in 2023 and its impact, particularly on small VMware customers. Broadcom’s strategy post-acquisition typically prioritizes larger customers, leading to concerns for smaller customers. The removal of VMware VSS Sphere is highlighted as a significant move that may turn being a VMware admin into a role similar to a Mainframe admin. The potential consequences for small customers, such as increased pricing and reduced learning opportunities, are emphasized. The speaker also shares personal anecdotes and encourages viewers to share their experiences. The video provides insights into Broadcom’s acquisition strategy, targeting companies with few competitors to drive revenue from larger customers, potentially at the expense of smaller customers.
00:03:00
In this segment of the video, the speaker discusses the impacts of Avago’s acquisition of PLX, which is now Broadcom’s acquisition. The acquisition of PLX was significant in the industry, particularly in the NVMe sector. PLX switches were widely used in high-end AI GPU servers and their acquisition led to increased prices and limited competition in the market. This resulted in vendors facing higher costs and hindrance in developing new architectures. The speaker also narrates an incident with HP where broadcom networking controllers were replaced by Intel ones allegedly due to Broadcom’s price increase strategy, leading to design changes in server motherboards. These changes were made to prevent vendors from inflating prices excessively.
00:06:00
In this segment of the video, the narrator discusses the impact of acquisitions on product prices, particularly focusing on Broadcom’s acquisition of VMware. Broadcom aimed to increase prices upon acquiring VMware to drive more revenue from existing customers due to VMware’s strong market presence and customer lock-in. The discussion also touches on VMware’s transition from perpetual licensing to a subscription model, allowing for extended implementation of new features similar to Adobe’s business model with Creative Cloud. These changes in VMware’s program have significant implications for customers and their upgrade paths.
00:09:00
In this segment of the video, the speaker discusses the VMware Cloud Provider Program (VCSP) and its impact on smaller managed service providers (MSPs). The new version of the program now starts at 3500 cores with pricing that has increased significantly, leading to potential cost challenges for smaller players. The speaker explains that the increased pricing may make VMware less accessible for smaller businesses, as broadcom aims to focus on larger customers. The segment highlights the financial implications and challenges faced by MSPs that rely on VMware but may now need to transition due to the substantial cost increase.
00:12:00
In this segment of the video, the speaker discusses how Broadcom and VMware discontinued the free version of the VMware vSphere Hypervisor. The speaker shares a personal story about choosing infrastructure hosting software in the past and how the availability of free tools like Proxmox influenced their decision. They make a comparison to Mainframe admins becoming a specialized skill set as cheaper alternatives became more prevalent. The speaker suggests that VMware admins may face a similar shift with Broadcom’s actions impacting the VMware business model. The segment emphasizes the impact on both large and small customers due to pricing changes.
00:15:00
In this segment of the video, the speaker discusses the shift in the VMware ecosystem, where access to free editions of software like ESXi is becoming limited, pushing users to explore alternatives such as KVM virtualization. The video emphasizes the impact of Broadcom acquisitions on pricing, highlighting how smaller players might be priced out. The decrease in free offerings like the vSphere hypervisor may affect the number of individuals opting to learn VMware. The speaker encourages sharing experiences and strategies for transitioning out of the VMware ecosystem.