Historically, data center virtualization pioneer VMware was seen as a technology leader, but recent business changes have stirred consternation since its acquisition by Broadcom in late 2023. New product bundling and pricing, reseller program adjustments, divestments, and unforeseen changes are driving CIOs and IT providers to reassess their strategies and technologies.
“It’s going to change the relationship customers have with the company because Broadcom’s focus is on running as efficiently as possible,” said Rajiv Ramaswami, president and CEO of Nutanix, in an April 2024 episode of highlighted the attention Broadcom’s VMware overhaul drew from CIOs, followed by reports of pricing and reseller agreement changes. The Register later noted “ in a blog post. Many customers remain wary, prompting IT leaders to explore alternatives and adjust their strategies regarding VMware products.
On the Tech Disruptors podcast, Ramaswami outlined how Nutanix is meeting the rising demand for simplified IT infrastructure and positioning itself as the easiest alternative for VMware customers seeking to reduce risk or dependence.
Podcast host Woo Jin Ho, an analyst at Bloomberg, said: “From my math, it looks like [Broadcom] cut out roughly 10,000 channel partners out of their 28,000. [They are] now down to 18,000. Does that potentially expand the channel partner program for you guys?”
Ramaswami confirmed.
“We’ve certainly seen a higher level of engagement with many channel partners,” Ramaswami said, highlighting a recent announcement that – which surveyed 1,500 IT, leaders globally – over 80% of organizations viewed hybrid IT as essential for managing applications and data. Nearly half indicated that implementing hybrid IT is a top priority for their CIO.
The interview hinted CIOs are cautious with their IT budgets and that while there is spending it’s with a total cost-of-ownership (TCO) mindset.
“We have a TAM (total addressable market) of about $76 billion and that includes software-defined compute, storage, and networking,” Ramaswami said. Disruption from the Broadcom-VMware acquisition “gives us an opportunity to grow [market] share faster than we probably normally have into that TAM. I would see this as an acceleration.”
Ramaswami discussed growth among both large Global 2000 and smaller companies globally, with many looking to expand their use of Nutanix. A major APAC company that ran a dual Nutanix and VMware strategy recently chose Nutanix over VMware for an expansion, while smaller customers show potential for full migration to Nutanix.
And he noted, after the Broadcom deal closed, a smaller public healthcare system accelerated its shift to Nutanix, finishing in just 90 days.
“We have done a lot of work on automating migrations for simpler environments, but also for very complex environments,” said Ramaswami.
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