Thread regarding VMware layoffs

VMC on AWS is getting shut down

Got word today that VMC on AWS is being shut down. They will communicate to customers that the service is continuing but it's being put into maintenance mode / end of sale and there will be no more updates. Almost all of the team is going to be laid off very soon.

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Post ID: @OP+1scTIxX1

41 replies (most recent on top)

Total cr-p all that is happening is aws cant sell it directly vmware will continue to sell and provide the service

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Post ID: @rpdg+1scTIxX1

Hock's blog regarding VMC is true, but he doesn't tell you the whole truth. In my book, a half-truth is a lie. Yes, it's alive today and tomorrow, but in what state? It's alive for who? Pay close attention to what he is not saying and you'll see.

  1. No new customers. There's no mention of it. Existing customers can renew or buy more. Eventually, customers will migrate off the platform in 3-5 years until the contract runs out. That's the estimated lifespan of VMC.
  2. He tells you it's alive today and tomorrow, but no mention of what type of state it'll be in. Yup, because it's in maintenance mode.
  3. Entire VMC staff will get laid off except for a few Support Staff who will keep the lights on.
  4. There won't be any new features or improvements, because the entire VMC PMs and engineers will be gone in a few weeks.
  5. Hock does not like to be in the business of operating the cloud. If you look at the pattern, he ki-led off all SaaS businesses in VMware, and some SaaS are now being converted to customer-managed solutions.
  6. Hock is all about high-margin profit. He doesn't care about anything else.

I hope this is a lesson learned by everyone on any future acquisition by AVGO. Hock will tear everything apart to squeeze out every dollar. It happened before, it's happening now, and it will happen again.

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Post ID: @djbf+1scTIxX1

This is the most accurate post. Read the reply, "Sorry, It's DEAD."

https://www.thelayoff.com/post/@udb+1sol8EpH

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Post ID: @dbkz+1scTIxX1

Latest from Broadcom on the future of VMC on AWS:

https://www.broadcom.com/blog/vmware-cloud-on-aws-here-today-here-tomorrow

In short the service will continue on, the major change is that Amazon/AWS is not a reseller.

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Post ID: @cnjj+1scTIxX1

OP here, want to clarify the original post as the situation has indeed changed. VMC on AWS will continue as a VMware by Broadcom managed service. The only change is that AWS is no longer a resell partner. Plans are rapidly forming to answer detailed customer questions in the coming days. In short there is no expiration date for the service, it will continue to be sold and supported.

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Post ID: @aauh+1scTIxX1

AWS was riding the coattails of VMware's engineering efforts. AWS supposedly has an engineering and PM team who supported VMC, but guess what they didn't do anything, so this was bound to happen. AWS was asleep; now they wanna blame Broadcom.

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Post ID: @9tjp+1scTIxX1

Can confirm that it will still exist as a product and be sold by Broadcom and partner/resellers. It's just that AWS will not be one of them.

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Post ID: @9nhk+1scTIxX1

VMC on AWS as a solution isn't going away. Still going to exist, be sold, and be managed by VMware. AWS is just telling people that because they won't be able to resell it anymore. FUD marketing from AWS to get customers to freak out and move their stuff to EC2.

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Post ID: @8oqt+1scTIxX1

Even if AVS "is Microsoft's", it depends on vSphere and Broadcom to support and enhance it for Azure moving forward.

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Post ID: @7hhl+1scTIxX1

The Eurocloud lobby CISPE is calling for a European Commission probe into Broadcom's takeover of VMware. Meanwhile AWS seems to be doing ok (https://www.theregister.com/2024/05/01/amazon_q1_2024/) and capitalizing on the undeniable arrogance of the Broadcom CEO. My bet is this goes all the way back to 2018 when Broadcom tried to strong arm Amazon, HP, Seagate, Etc... (https://www.cnbc.com/2018/03/01/broadcom-ceo-hock-tan-aggressive-negotiations-with-amazon-hpe-others.html) and then in 2021 when Amazon announced they weren't going to be solely reliant on Broadcom Networking chips and Hock Tan went off on a vendetta https://seekingalpha.com/news/3677611-amazoncom-pursues-its-own-networking-chip-amid-frosty-broadcom-relationship-report. These tactics, combined with literally 100's of Billions of dollars being poured into AI chip fab from Microsoft, Softbank, Micron, Open AI, Etc... Boo Broadcom!

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Post ID: @7wdq+1scTIxX1

https://www.theregister.com/2024/05/01/vmware_cloud_partner_changes/?utm_source=alert&utm_medium=alert&u

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Post ID: @7nwg+1scTIxX1

AVS is Microsoft’s not VMware so don’t see that going anywhere. Plus Azure is on a growth tear

VMware is trash. There’s money to be made by Google and Msft from the exodus. VMware is only a memory now.

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Post ID: @6zjn+1scTIxX1

Wow, it's about time. VMware su-ks and Broadcom su-ks! Any business leader in their right mind should be building a business case and determining how to run away as fast as possible. Not to mention the entire global partner community being kicked to the curb while Broadcom feeds them some B.S. narrative. I hope all of the partners unite and just stop selling or supporting VMware in any way possible.

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Post ID: @6bsg+1scTIxX1

There was a VMC Town Hall this morning in AWS, VMC is dead. The announcement is planned for tomorrow, let's see.

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Post ID: @6izo+1scTIxX1

Broadcom does not use AWS, does not support internal projects using it, and does not support its products using it. All VMware products are given a timeframe to adapt to GCP. If they cannot do it, then they're gone.

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Post ID: @5bww+1scTIxX1
However, knowing who was one of the VPs at the time, who bailed after being responsible for the train wreck,

That was typical though. There was a time where every damn year we had a new VP in CMBU throwing their toys out the pram.

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Post ID: @2jrv+1scTIxX1

To this day I still don't wtf mgmt., was thinking promoting Xenon
I don't know if this was incompetence , arrogance or both
However, knowing who was one of the VPs at the time, who bailed after being responsible for the train wreck, I would say probably a fair bit of arrogance.
It also goes to show that those were promoted to senior positions didn't have a clue and like the standard MO for promotions at VMware at the time it often had little to do with what you did or know but if you were from a specific geolocation , dialect or just how well you su-ked up

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Post ID: @2eqk+1scTIxX1

Vmw should have let AWS OEM it from the beginning. They (AWS) had the back end operations system to handle subscription purchases and consumption. VMW tried to Frankenstein a system built for perpetual licenses and it was as expected a disaster.

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Post ID: @2iyo+1scTIxX1

Finally! VMC on AWS was a POS service and should have been shutdown years ago. It was flawed from the beginning. VMW should have put the right talent and leadership behind vCloud Air and would have had a much better offering. Bye Bye VMConAWS, don't let the door hit you in the a-s.

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Post ID: @2muv+1scTIxX1

lol @ all the vmw sales guys still su*king up to Hock online

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Post ID: @2ast+1scTIxX1

Monsieur Hervé Renault, j'espère que vous aurez plus de succès la prochaine fois. Vous n'avez pas compris l'entreprise, le prix scandaleux, le concept erroné et la force de vente qui a dû se battre 90 % du temps en interne et non chez les clients

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Post ID: @2atj+1scTIxX1

Post below is spot on. Perfect summary of the history and current situation. Game over for VMC and wonder what’s going to happen with other hyperscaler agreements.

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Post ID: @1vpr+1scTIxX1

In 2018, VMC on AWS was all the rage and it su-ked the oxygen out of any room.
By 2020, the division spent over $200million on the product with almost no sales (still measuring on acquisition of new logos).
Business picked up over time.
But the strategy was questionable. It wasn't that AWS wouldn't try to convert workloads to native EC2.
While the public clouds thrived, VMware was losing workloads. VMC and it's multitude of offshoots didn't prevent that.
And it didn't take broadcom more than five minutes to figure out that putting vsphere into public clouds isn't a winning strategy.
And here we are.

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Post ID: @1xst+1scTIxX1

Wait for the actual public announcement as there is more to it....

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Post ID: @1ikc+1scTIxX1

It was actually popular with big customers. It was built for them.

The Google Vmw offering isn’t going anywhere. Google and Broadcom are tight. Don’t know about Msft.

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Post ID: @1ejw+1scTIxX1

This is part of HT's ongoing process of profitability optimization. We should expect more end-of-life announcements in the coming months. All part of their cost-cutting playbook.

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Post ID: @1yes+1scTIxX1

Many warned for years that VMware's cloud products were not viable and got treated terribly for it. This is what all of us knew would be the end. AVS, Oracle and Google will be next. Garbage products priced to never sell.

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Post ID: @1ncu+1scTIxX1

Lots of stupid sh-t happened at vmware but it was still a good place to work.. hard to see it being torn to bits.

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Post ID: @1jdv+1scTIxX1

there are close to 1200 customers. It's gonna be a while before Broadcom can completely shut it down. But yes, huge layoff incoming for VMC.

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Post ID: @1vpa+1scTIxX1

Well even Amazon has ki-led their VMC sales teams.. writing was on the wall

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Post ID: @1ihj+1scTIxX1

I head this today too. VMC sale is not happening. Head count to be reduced 80% from 500 to 100 and put on life support to be shut down within 1 year.

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Post ID: @1wlo+1scTIxX1

Do you by chance mean VMware Cloud Flex storage?
https://kb.vmware.com/s/article/97873

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Post ID: @1aij+1scTIxX1

the tens of people who used it are gonna be mad!

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Post ID: @izx+1scTIxX1

More like "autistic kid who doesn't understand how a toy works smash".

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Post ID: @tkj+1scTIxX1

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