News & Analysis

Broadcom partners with Google Cloud

Part of its effort to broaden VMWare deliveries and make it better for partners and customers

When Broadcom paid a whopping $69 billion to acquire VMWare, the writing was very much on the wall. Having invested the big bucks, the semiconductor giant had to be patient with the cloud computing solution provider. And they’re doing so by first making changes to the software delivery models of VMWare, and then announcing Google Cloud as its first hyperscale partner. 

Under the deal, Google would provide VMware Cloud foundation on Google Cloud VMware Engine, a shift towards a subscription-based software delivery model that is in line with most of the software industry’s existing prescription. According to VMware Marketing VP Prashanth Shenoy, the VMware Cloud Foundation (VCF) users will see more deployment flexibility. 

According to him license portability would become part and parcel when users purchase VCF which means that customers can then deploy software on-premises and use the subscription across supported hyperscale cloud environments such as Google Cloud. This helps users retain the license subscription as they move. 

What changes for existing VCF customers?

Following the announcement of Google Cloud as a hyperscale partner, existing VCF customers can transfer the balance value of their existing subscription to Google Cloud VMware Engine or buy access to a fully integrated Google Cloud VMware Engine environment with VCF software directly from the hyperscale partner. 

From Google’s point of view, becoming the first public cloud partner to support VMware Cloud Foundation license portability, brings additional value to the business. “Google Cloud remains committed to improving the simplicity and cost-effectiveness of our customers’ cloud migration and digital transformation initiatives,” says Google VP Mark Lohmeyer.

For now, the license portability to Google Cloud VMware Engine would be available publicly by the second quarter of 2024 with the expanded cloud provider support for VCF license portability likely to follow immediately thereafter. 

A shift towards one product plus services

In fact, Broadcom has also made some organizational changes towards enhancing the vendor focus of the VCF software. They started off by putting all R&D investments towards fewer offerings in order to provide a double win for customers. VMware cleared the shelves of a few standalone products such as the SAAS iteration of its Aria multi-cloud management platform and dozens of its vSphere, VCF, vCenter and NSX products

According to Shenoy, keeping a few offerings that are lower in price on the high end and are packed with more value for the same or less cost on the lower end,” makes good business sense for customers, partners and VMware. Additionally, VMware also consolidated its product teams into one division focused on VCF, building a single, integrated integrated product across all core technologies with a single vision.” 

Finally, the professional services and global support functions are now closely linked with R&D in the same division as part of an effort to provide sharper focus on building one product with the services and support required to drive maximum value. Of course, this may have raised some concerns from customers, the company believes that through proactive engagement of the sales team with channel partners, the transition would be smoothened.