Broadcom Enterprise Agreements: Strategic Sourcing Guide for IT Procurement

Introduction

Managing enterprise agreements with Broadcom requires a strategic, well-informed approach. Broadcom has rapidly expanded its enterprise software portfolio through acquisitions of companies like CA Technologies, Symantec Enterprise Security, and, most recently, VMware.

These acquisitions have been followed by significant changes in licensing models, pricing, and customer engagement, often leading to higher costs and reduced flexibility for customers. IT procurement professionals must therefore be vigilant and proactive.

This guide presents 20 key considerations for sourcing and managing Broadcom enterprise agreements, each with an overview of the issue, best practices, common pitfalls, and actionable recommendations.

The focus spans Broadcom’s diverse software suite – from mainframe and infrastructure software (CA) to security solutions (Symantec) to virtualization/cloud (VMware) – equipping procurement teams to negotiate effectively and optimize value.

Read how to negotiate with Broadcom.

(Note: All monetary figures and examples are illustrative. Always benchmark against current market data for accuracy.)

Broadcom Licensing Models and Metrics (Perpetual vs. Subscription)

Overview: Broadcom’s acquisitions have brought shifts in licensing models. Perpetual licenses with annual maintenance are being phased out in favor of subscription-only models across Broadcom’s portfolio​.

For example, VMware, now under Broadcom, no longer offers perpetual licenses – customers must move to a subscription to receive updates and support. Broadcom also often changes license metrics; for instance, VMware’s model shifted from per-CPU to per-core licensing with high minimum core counts. Understanding these model changes is critical for budgeting and compliance.

Best Practices:

• Stay informed about model changes: track licensing announcements for each Broadcom product line. For example, be aware that VMware now uses per-core subscriptions, and Symantec has moved toward user or device subscription bundles.
• Align Budgeting to OPEX: Plan for ongoing subscription expenses instead of one-time capital costs. Shift internal budgeting processes to accommodate recurring subscription fees, smoothing out spend over the contract term.
• Assess License Metrics Impact: Analyze how new metrics affect costs. If a product moved from device-based to user-based licensing, recalculate your license needs. In VMware’s case, calculate core counts per server – a change from CPU to core licensing can significantly increase costs for dense servers. Adjust architecture or capacity plans if needed (e.g., prefer more servers with fewer cores each, if feasible, to minimize licensing).

Pitfalls to Avoid:

• Assuming Legacy Terms Persist: Don’t assume you can extend old perpetual agreements indefinitely. Broadcom typically forces a transition upon renewal (e.g. support on perpetual VMware licenses is not renewed without conversion to subscription​). Entering renewal talks unprepared for the new model can lead to unplanned costs.
• Ignoring Usage Profiles: A one-size subscription can lead to shelfware if you’re not using all the features. Buying an all-inclusive package when only a subset is needed wastes budget. Avoid blindly accepting a bundled subscription without mapping it to actual needs.
• Underestimating True License Needs: With new metrics, undercounting usage can lead to compliance issues. For instance, if licensing is per user, ensure that every account, including service accounts and contractors, is accounted for. Broadcom’s models often leave little wiggle room, so precise internal inventory is a must.

Actionable Recommendations:

• Map Current to Future State: Create a mapping of your current entitlements versus Broadcom’s new licensing model. For each product, document how many licenses you have and how the new model would translate (e.g., 10 CPU licenses = X cores under new rules). Use this to forecast cost changes and form negotiation targets.
• Negotiate Transition Terms: When moving to Broadcom’s subscription, negotiate credits or incentives for the value of your existing perpetual licenses. For example, request a discounted first-year subscription rate to account for past investment. Ensure any “trade-up” program is documented to avoid losing value during the switch.
• Consider Phased Adoption: If possible, phase your transition. You might continue using a perpetual license for a period (without support) while piloting the subscription in parallel. This phased approach can buy time to adjust budgets and usage. However, weigh the risk – operating unsupported software in the long term is not ideal.
• Leverage Subscription Benefits: Once you’re on a subscription, take advantage of the included upgrades and flexibility. If Broadcom offers a portfolio-wide license (such as a Portfolio License Agreement (PLA) that covers multiple products​), use that flexibility to deploy additional products for evaluation or to replace redundant tools, maximizing the value of the subscription.

Read CIO Playbook – Negotiation with Broadcom.

Broadcom Portfolio Enterprise Agreements (PLA) and Bundled Deals

Overview: Broadcom encourages large customers to sign comprehensive Portfolio Licensing Agreements (PLAs) – enterprise agreements that bundle Broadcom’s diverse software products under one contract.

The allure is a single agreement that grants access to a broad range of software, including security, infrastructure, and virtualization, for a fixed annual fee.

In theory, PLAs can simplify vendor management and potentially lower unit costs by aggregating spend​. However, bundling everything can also obscure individual product costs, leading to the payment for unwanted software. Procurement must carefully evaluate whether a bundled Broadcom agreement truly aligns with the organization’s needs.

Best Practices:

• Evaluate the Portfolio Fit: Inventory of the Broadcom products you use (or plan to use). If you only use, say, two products from Broadcom’s catalog, a broad PLA may not be cost-effective. On the other hand, if you have significant usage across CA, Symantec, and VMware divisions, a PLA could yield value.
• Insist on Transparency in Bundles: During negotiation, break down the bundle. Ask Broadcom for a cost allocation or price list for each component within the package. While they may position it as “one price for all,” understanding the internal pricing helps you identify which components carry the most cost, which can be useful if you consider dropping some. Pricing transparency is crucial; otherwise, you can’t tell if a bundle discount is fair or if it’s just hiding markups behind “free” extras.
• Modular Agreement Structure: Negotiate the PLA with modules or service catalogs. For example, include a provision that allows you to swap one security product for another equivalent one in the portfolio if your needs change. This keeps the agreement flexible over its term – a key benefit if Broadcom releases new products or if your priorities shift.
• Check Multi-Product Interoperability: If you opt for a broad bundle (e.g., integrating Symantec security with CA tools and VMware), ensure the products work together or at least don’t overlap inefficiently. Sometimes, a bundle may include two tools with similar functionality, acquired from different sources. Plan to rationalize overlapping tools rather than pay double.

Pitfalls to Avoid:

• Over-commitment: Committing to a large bundle “just in case” you might use some of its components is a classic recipe for shelfware. Broadcom’s sales teams may pitch the PLA as a way to experiment freely with new software. While this sounds flexible, remember you are paying for that privilege. Avoid signing up for significantly more products or capacity than you realistically need in the term.
• Lack of Exit for Unused Products: If a certain product in the bundle becomes obsolete or unused (e.g., you replace Symantec Endpoint Protection with another solution), you might be stuck paying for it until the EA expires. Without provisions to scale down or remove components, the bundle becomes a straightjacket.
• Assuming Bundle = Best Price: Bundling can sometimes increase leverage (larger deal size), but don’t assume it’s the automatically cheapest route. Broadcom could apply smaller discounts on a large PLA than you might negotiate on a smaller, competitive product-specific deal. Always validate bundled pricing against à la carte options – you might find two separate negotiations (e.g. one for VMware, one for security) yield better combined terms than a single monolithic contract.

Actionable Recommendations:

• Total Cost Analysis: Perform a total cost of ownership (TCO) analysis comparing PLA versus individual agreements. Model out 3–5 years of costs in both scenarios. Include license fees, support, anticipated growth, and any bundle discount. This analysis will highlight the cost/benefit of bundling. If the PLA doesn’t show clear savings or strategic benefit (e.g., simplified management), be ready to push back.
• Bundle Right-Sizing: If you pursue a portfolio agreement, tailor it to fit your needs. Exclude products that you have no intention of using in the near term. Broadcom might resist à la carte changes to its “all-in” bundle, but large customers can negotiate a custom bundle that focuses on relevant products. Document precisely which product families are included to avoid ambiguity.
• Mid-Term Flex Options: Negotiate mid-term flexibility. For instance, include a clause that after years 1 or 2 of the agreement, you can drop up to 10% of the products (or spend) without penalty if they prove not to be useful. Alternatively, arrange a mid-term business review with Broadcom to rebalance portfolio usage, perhaps exchanging licenses for an unused product with credits toward another Broadcom product.
• Leverage Enterprise Volume: If opting in to a broad agreement, leverage the fact that you’re making a significant enterprise-wide commitment. Push for concierge-level support and governance as part of the deal. Broadcom has offered dedicated customer success managers for strategic PLA clients​. Also, request price protections (discussed later in this guide) given the scale of your spend.

Renewal Strategy and Timeline Management

Overview: Broadcom’s contract terms and sales approach leave no room for complacency at renewal. Early planning is essential. Broadcom often enforces strict renewal policies; for example, VMware contracts now incur a 20% penalty on subscriptions if they are renewed later.

Waiting until the last minute can result in steep price hikes or even lapse of support. Moreover, Broadcom’s negotiation stance is notoriously tough – they are known to use time pressure to their advantage.

A structured renewal strategy ensures you maintain control of the timeline and have adequate leverage to negotiate favorable terms.

Best Practices:

• Start Early: Begin renewal preparations 12–18 months before your contract expires. Align internally with IT, finance, and legal on goals (cost savings targets, new needs, deal breakers). Beginning early is especially vital with Broadcom because they often show an unwillingness to extend deadlines or provide grace periods. This lead time lets you explore alternatives and avoid being cornered.
• Create a Renewal Playbook: Have a detailed project plan for the renewal process. Key steps: internal usage and license audit, requirements gathering, stakeholder sign-offs, RFP or pricing proposal from Broadcom, negotiation rounds, and contract review. Assign owners and deadlines to each step. A formal checklist approach (similar to how one would handle a Microsoft EA renewal) ensures nothing is overlooked.
• Align Global Expirations: If you have multiple contracts (e.g., separate regional or product agreements inherited from CA or Symantec), try to co-terminate them. Aligning expirations allows you to negotiate them together, increasing your volume leverage. Broadcom focuses on large consolidated deals, so you gain influence by bringing a bigger combined renewal to the table.
• Engage Executives: Involve senior sponsors, such as the CIO and CFO, early in the process. Broadcom’s sales teams pay attention when high-level executives are involved. An executive-backed negotiation can help escalate issues (e.g., requesting exceptions or custom terms) and signal to Broadcom that your organization is treating this as a top priority, not a routine renewal.

Pitfalls to Avoid:

• Rushing in Broadcom’s timeframe: Broadcom might delay providing quotes or push negotiations late into the cycle to create a sense of panic. Do not let their timeline dictate to you. Many companies that start late end up accepting a poor deal under duress. Maintain an internal schedule with clear milestones, and if Broadcom falls behind, escalate the issue early and often to gather the needed information.
• Skipping Internal Approvals: Given Broadcom’s likely price increases, you may need higher budget approvals. Don’t wait until the last minute to get management buy-in on worst-case scenarios. Surprise sticker shock at the final negotiation without prior executive awareness can hinder your ability to push back (if your executives are unprepared and want to sign).
• Ignoring Notice Periods: Check your current contract for auto-renewal or notice clauses. Some legacy CA or Symantec contracts may auto-renew for a year of support if notice is not given 60-90 days in advance. Missing such notice can remove your chance to negotiate. Similarly, if you plan to terminate something, you must inform Broadcom in writing by a certain date. Calendar these critical dates.
• Underestimating Transition Time: If considering switching away from a Broadcom product at renewal, avoid assuming you can do it “just in time.” Migrating off a core system, such as VMware, a security suite, or mainframe software, can take many months. If you truly might exit, you must start those plans well ahead of renewal – otherwise, Broadcom will know you have no real choice but to renew.

Actionable Recommendations:

• Set a Formal Timeline: Create a Gantt chart or timeline for the renewal process that outlines all tasks and deadlines. Share this with your Broadcom account manager early, highlighting that you have an internal deadline for finalizing the terms (e.g., “We need a signed agreement three weeks before expiry for internal processing”). This communicates that you won’t tolerate last-minute brinkmanship.
• Conduct a Pre-Renewal Audit: Before engaging Broadcom on pricing, do an internal audit of license deployments and usage. Identify unused licenses, under-deployed products, or low-utilization areas. Action: Compile a list of licenses that can potentially be dropped or downsized. This will form the basis of your negotiation to remove waste (see Shelfware section).
• Run Scenarios: Prepare a few scenario plans for negotiations. For example: Plan A – renew everything at X% discount; Plan B – drop certain modules and cap cost at a certain figure; Plan C – if Broadcom’s offer exceeds budget by Y%, what will you do (escalate to CEO? Consider third-party support? Delay projects to free up funds?) Knowing your options and fallback positions in advance provides confidence during talks.
• Use Broadcom’s Fiscal Year: Research Broadcom’s fiscal year calendar (Broadcom’s FY and quarter-ends are times when sales might be more eager to close deals). Whenever possible, time your final negotiation stages to coincide with Broadcom’s end of the quarter or fiscal year. Vendors often offer better discounts or concessions to hit their targets at these times. If your renewal naturally falls just after a quarter, try to pull it forward slightly; if it falls just before, leverage the pressure on the sales team to get it closed.
• Document Everything: Keep a record of all communications with Broadcom reps leading up to renewal. Note any promises or indications (e.g., “we will hold last year’s pricing” or “we’ll give a better rate for a multi-year renewal”). Having a paper trail can be useful if there’s turnover on the account team or if you need to escalate disagreements on what was offered.

Bundling Strategies and Feature Usage Optimization

Overview: Broadcom frequently bundles features and products together, whether within a single product suite or as multi-product packages. While bundles can offer more value, they also carry the risk of paying for features you don’t use.

For example, under Broadcom, VMware consolidated many formerly separate products into a few bundles, such as VMware Cloud Foundation, which forced some customers to buy components (like NSX and vSAN) they rarely needed.

Similarly, Symantec’s Integrated Cyber Defense suite, now under Broadcom, combines endpoint, DLP, and network security, among other tools, which may overlap with other tools in your environment. It’s essential to analyze bundle contents versus actual needs.

Best Practices:

• Map Features to Requirements: For each Broadcom bundle or suite, map which features your organization truly needs. For instance, if evaluating VMware Cloud Foundation, list out the sub-components (vSphere, vSAN, NSX, etc.) and mark which ones you actively use. This clarity can guide you in negotiating for a lighter edition if many components are unnecessary (e.g., push Broadcom for a vSphere-only deal if you don’t need the full Cloud Foundation).
• Segmentation of Users and Environments: Not all users or environments require the full bundle. Consider segmenting your license purchases: maybe only your production environments require the full feature set, while dev/test or smaller offices could use a scaled-down edition. Broadcom may not advertise these options, but after receiving customer feedback, they reintroduced some standalone VMware editions for this reason.
• Regular Utilization Reviews: Make it a practice (e.g., quarterly) to review usage of each feature in a bundle. If you find components that are not being used, you have data to approach Broadcom to either remove them in a renewal or adjust the bundle. At minimum, it helps justify if you consider dropping a bundle for a cheaper alternative.
• Pilot Before Committing: If Broadcom’s bundle includes new modules you haven’t used (say a security analytics add-on), request a trial or pilot as part of the agreement before fully committing. Validate its value to your operations. If it doesn’t deliver, plan to exclude it later or ensure you’re not locked into scaling it broadly.

Pitfalls to Avoid:

• All-or-Nothing Upsell: Broadcom reps might position bundles as the only “future-proof” option (“You’ll eventually need these features, so buy Everything Suite now”). This can lead to significant shelfware. Don’t be swayed without evidence – purchase based on current requirements and near-term roadmap, not vendor hype.
• No Downgrade Path: After adopting a bundle, you may find that you’ve overbought. Be aware that mid-term, vendors are reluctant to let you downgrade or remove components. If you sign up for the top-tier bundle initially, you could be stuck at that level even if usage doesn’t justify it. That’s why starting with a smaller bundle and adding components later (at negotiated rates) might be wiser than taking everything upfront.
• Ignoring Hidden Costs: Sometimes, bundles require underlying dependencies that incur extra costs. For example, using all the features of a security suite may require deploying additional infrastructure or purchasing third-party licenses (such as databases or operating systems). Ensure you account for any ancillary costs of using those bundled features – a feature isn’t really “free” if it requires other expenses to be fully utilized.
• Overlooking Simpler Alternatives: A bundle might include an advanced feature for which a simpler solution exists, perhaps even one native to your cloud platform or open-source. If you already have viable alternatives, paying for that feature in a bundle is wasteful. Don’t double-pay for capabilities – scrutinize bundles for overlap with your existing toolset.

Actionable Recommendations:

• Customize Bundles in Contracts: During negotiations, don’t hesitate to propose a custom bundle. For example, “We want products A, B, and D from the suite, but not C.” Broadcom may have standard bundles, but large deals often allow customization. You might not get a price reduction linearly, but you could get more of what you want (higher quantities of A and none of C) for a similar price.
• Benchmark Bundle vs. Separate: Get quotes for both the bundle and equivalent standalone licenses (if available). This will expose the “bundle tax.” If the bundle is only say 10% cheaper than buying individually, but you’d drop 30% of the content as unnecessary, then separate licenses make sense. Conversely, if the bundle offers a 50% discount and you plan to use most of the components, it’s compelling. Use this analysis in your negotiation rationale.
• Negotiate Usage Credits: If you’re unsure about certain bundle components, consider negotiating a “use it or swap it” clause. For instance, if after 12 months you haven’t deployed a particular product in the bundle, you can swap those licenses for another Broadcom product of equal value or receive service credits. This puts some onus on Broadcom to ensure you realize value from all parts of the bundle.
• Keep an Eye on Product Changes: Broadcom’s bundling strategy can evolve. Today’s must-buy bundle might be split or changed tomorrow if enough customers push back. Stay active in user groups or advisory boards to lobby for bundle adjustments that suit customers’ real needs. If you sense an upcoming change (e.g., Broadcom hinting at reintroducing standalone options), time your procurement to take advantage of that (perhaps a short renewal now and a bigger change later once the new options are out).

Pricing Transparency and Market Benchmarking

Overview: A recurring challenge in Broadcom negotiations is the opacity of pricing. Broadcom often provides enterprise proposals with lump-sum costs or high-level numbers, making it difficult to discern unit pricing or discount levels for each component.

Unlike some vendors, Broadcom doesn’t publicly share price lists for many of its acquired products, and it tends to customize pricing per client. This opacity means procurement must do extra homework to determine if an offer is fair.

Market benchmarking is crucial – Broadcom has imposed steep price increases (often 2x-4x higher than previous contracts post-acquisition)​, so understanding what others are paying or what’s “reasonable” is key to negotiating effectively.

Best Practices:

• Gather Peer Data: Use industry networks, user groups, or sourcing advisors to collect insight on Broadcom pricing. For example, other companies in your industry might share that Broadcom proposed a 200% increase on their Symantec renewal. Such data points arm you for your negotiation (“we are aware other clients have seen X – we need a justification if that applies to us”). Analyst firms like Gartner or procurement consultancies often publish cost benchmarks. Consider obtaining those reports if available.
• Request Detailed Quotes: Ask Broadcom for itemized pricing in your enterprise agreement. Break down the cost per product, user, core, etc. They may resist (preferring a single bundle price), but even a rough allocation is better than a black box. If they only provide a total, reverse-calculate unit prices by dividing the cost by the quantity, and then compare those implied unit costs to historical prices or alternatives.
• Understand List vs Discount: Determine Broadcom’s list prices if possible (sometimes buried in contracts or partner documentation). Then calculate the discount being offered. If Broadcom says, “This is a 50% discount deal,” validate that by checking their math. Often, vendors manipulate list prices to appear as if they offer an inflated discount. Knowing the real baseline helps you negotiate the actual discount or final price you need.
• Use Third-Party Benchmarks: Leverage third-party benchmark services or tools. Some procurement departments subscribe to services that have anonymized data on large software deals. If you have access, pull data specific to Broadcom, CA, or VMware deals of a similar size. Even if data is sparse due to Broadcom’s unique approach, any reference point (e.g., cost per user for Symantec endpoint, cost per core for vSphere subscription at a given volume) is better than none.

Pitfalls to Avoid:

• Negotiating in a Vacuum: The worst position is to negotiate without any frame of reference. Broadcom’s sales tactics might lead to a very high price and claim it’s the “industry standard.” Without external benchmarks, you may end up agreeing to rates far above the market. Do not rely solely on Broadcom’s word – always cross-check.
• Ignoring TCO: A narrow focus on upfront discount can be misleading. Broadcom might offer a big discount, but on an unnecessarily large bundle or a high base price. Always evaluate the total cost of ownership over the term. A 60% discount on a bloated bundle could be far worse than a 20% discount on a lean, right-sized set of licenses.
• Failing to Probe “Why”: If Broadcom’s price is much higher than before (e.g., “your renewal is 3x last year’s cost”), don’t accept it at face value. Ask for detailed reasons: is it due to higher usage, a different metric, added features, or the elimination of an old discount? Force them to articulate the value behind the cost. Often, this reveals that not much has changed, except for Broadcom’s margin objectives, which give you leverage to argue for a lower price.
• Overlooking Related Costs: Ensure that you include maintenance and support in pricing comparisons. Broadcom might separate software subscription and support in quotes. Compare apples to apples – for example, if you previously paid maintenance separately from licenses, and now the subscription is inclusive, adjust for that. Also, consider the cost of any needed services (migration, implementation assistance) – you may be able to negotiate some of those “soft” costs into the deal value.

Actionable Recommendations:

• Create a Pricing Matrix: Build a matrix or table of all components you plan to license, with columns for: current costs, Broadcom’s quote, any industry benchmark ranges, and your target price. Use this matrix in negotiations to structure the discussion – it shows you’ve done your homework and pinpointed where the gaps are. If Broadcom refuses to break out pricing, use your own estimated allocations to drive line-by-line negotiation.
• Leverage Multiple Bids (if possible): Broadcom’s unique portfolio makes direct apples-to-apples competition hard, but you can simulate it. For example, get a quote from a competitor for a major component, such as an alternative virtualization platform or security suite. Even if it’s not a full replacement of Broadcom’s bundle, it gives a cost reference. Present Broadcom with, “For X functionality, we have an alternative quote at Y price – you need to come closer to this range.”
• Ask for Price Benchmarking Data: Sometimes, you can turn the tables by asking Broadcom to provide why they think the price is justified. They might cite investments or ROI. Ask if they have any ROI tools or case studies where customers found value at this price. If they struggle, it underscores that the price is arbitrary. On occasion, vendors will share an anonymized range (“customers of your size spend between $A and $B”). If you receive this, push to be at or below the lower end of that range.
• Lock in Renewal Rates: To combat uncertain pricing, negotiate caps or fixed rates for future renewals in writing. For instance, include a clause limiting annual price increases to a single-digit percentage or stipulating that renewal pricing for year 4 will not exceed year 3 by more than X%. This prevents Broadcom from quoting an acceptable price now, but then doubling it at the next renewal (a known tactic). Insist that any quoted discount is maintained for any additional licenses during the term and at least one renewal cycle.
• Document Concessions in the Contract: If Broadcom gives verbal assurances, such as “we’ll give you an extra discount if needed to meet the budget,” get them documented. Ideally, bake into the contract a right to benchmark pricing – e.g., a clause that if you can demonstrate that a comparable customer got a better price, Broadcom will review and adjust your pricing. While Broadcom may not agree to such terms easily, even pushing for them emphasizes your expectation of a fair deal and might net you a preemptive discount to avoid that scenario.

Shelfware and Utilization Management

Overview: Shelfware – licenses or subscriptions paid for but not used – is a common pitfall in large enterprise agreements. Broadcom’s broad product bundles and large minimum commitments can exacerbate this issue.

Without diligent management, you could be paying for shelfware across the Broadcom portfolio: unused modules in a security suite, excess capacity in a mainframe license, or idle VMware subscriptions on undeployed servers.

Given Broadcom’s “no refunds” stance once you commit, it’s critical to avoid and continually prune shelfware. Industry surveys indicate that a significant portion of enterprise software spending is underutilized, and Broadcom’s recent bundling moves have caught many organizations paying for components they rarely need​.

Best Practices:

• Baseline Current Usage: Before entering an agreement (or renewal), do a thorough usage audit. For each product, determine how many licenses are currently in use versus those that have been purchased. Use tools and vendor usage reports where available. This baseline helps identify immediate shelfware to eliminate.
• Implement Ongoing Tracking: Treat license usage as a key performance indicator (KPI). Establish regular tracking (monthly or quarterly) of Broadcom license consumption. Many Broadcom products, such as Symantec security or CA tools, have management consoles that can report on active users, agents, etc. Pull those stats and compare to entitlements. This ongoing vigilance prevents unnoticed growth of shelfware.
• Stakeholder Accountability: Assign internal “owners” for each major Broadcom product or suite who are responsible for license utilization. For instance, the VMware team should report on VM density vs. vSphere core licenses, and the security team on deployed endpoints vs. subscriptions. When someone is accountable, they are more likely to seek optimization (e.g., uninstalling agents on decommissioned devices to free up licenses).
• Regular True-ups vs. True-downs: In some cases, your Broadcom contract may allow true-ups (adding licenses during the term) but not reductions. However, at renewal time, treat it as a true-down opportunity – drop any excess. Leading up to renewal, try to scale usage down if possible to avoid renewing at a higher baseline. For example, if you have 100 unused endpoint security licenses, check if they can be reallocated. If not, plan to remove them from the renewal count.

Pitfalls to Avoid:

• Overbuying “Just in Case”: Broadcom reps might urge you to purchase extra capacity now (with the promise of a discount) rather than later. Be cautious – buying 20% more licenses” for growth” makes no sense if you never end up using them. It’s often better to negotiate a right of first refusal on additional licenses at the same discount, rather than pre-purchasing unused units.
• Forgetting to Decommission: When projects or systems are retired, their licenses often remain allocated in procurement records. This leads to paying maintenance on dead assets. Avoid this by tying procurement to IT operations: e.g., ensure a process is in place that whenever a VM cluster is decommissioned or a set of users is offboarded, the software licenses are noted and can potentially be reduced at the next opportunity.
• Not Consolidating Environments: Some shelfware arises from fragmentation – e.g., multiple instances of similar tools, each used only partially. Broadcom’s acquisitions might mean you have an overlap (maybe two monitoring tools after the CA acquisition). Failing to consolidate will leave one of them underused. Make an effort to standardize on one toolset where possible to fully utilize that license pool and retire the other.
• Lack of Usage Visibility: Particularly with older CA products or broad PLAs, if you don’t actively measure usage, Broadcom can claim you’re using everything (justifying cost). Flying blind can also cause accidental non-compliance if usage exceeds entitlements on some components while others are underused. Don’t let a situation arise where only Broadcom’s audit reveals your usage – know it yourself first.

Actionable Recommendations:

• Utilization Dashboard: Develop an internal dashboard that pulls data from various Broadcom software, such as VMware vCenter for host counts and Symantec Endpoint Console for device counts, and displays license utilization compared to entitlements. Present this in quarterly business reviews to leadership to underscore the value (or inefficiency) of the Broadcom agreement. This can build support for renegotiation or optimization initiatives.
• Optimization Initiatives: If you identify significant shelfware (i.e., more than 10% of licenses unused), kick off an initiative to reduce it. This could mean training users to adopt underutilized tools (turn shelfware into value) or rightsizing licenses. For example, if 30% of your developers aren’t using the advanced features of a CA tool, consider shifting them to a cheaper license tier if available.
• Negotiate Flex for Unused Licenses: Include a provision in your contract for banking or reallocating unused licenses. Any licenses not deployed after 1 year may be credited towards other Broadcom software. Or negotiate a volume band: e.g., you commit to 10,000 users, but if you only deploy 9,000, Broadcom will allow a proportionate spend on another product or a service credit. It’s tough, but some large customers have had success getting flexibility for under-deployment​ (essentially a limited ability to adjust downward).
• Audit Your Shelfware Before They Audit You: Interestingly, shelfware can sometimes masquerade as a compliance issue – for example, you bought 1,000 licenses, but only deployed 800. However, an audit finds that you installed the software on 1,200 machines (perhaps including some trial or untracked installs). Regular internal audits catch such discrepancies. If you find any instances of usage beyond entitlements, proactively address them (such as uninstalling or purchasing additional licenses) before Broadcom conducts an official audit. This proactive stance can save significant penalty costs and shows good faith, potentially smoothing relations in negotiations.

Contract Flexibility and Custom Terms

Overview: Broadcom’s standard contracts tend to be inflexible and favor the vendor. After the acquisition, many customers have found Broadcom’s terms to be more rigid than those of the acquired company – shorter grace periods, stricter renewal clauses, and limited rights to change license counts or products.

For procurement, negotiating flexibility upfront is critical because once you sign, the leverage to change terms later is minimal.

Key areas of flexibility include the ability to adjust licenses, transfer rights, termination for convenience, and protections against unforeseen changes.

Given Broadcom’s fast-evolving product portfolio, having contractual safeguards can protect your organization in case the software or your needs change during the term of the agreement.

Best Practices:

• Thorough Contract Review: Involve your legal team early to review Broadcom’s master agreements, order forms, and product terms. Identify clauses around price increases, termination, usage reporting, assignment (transfer of licenses), and product scope. Mark any that could pose a risk if your business circumstances change, such as a merger, divestiture, or cloud migration. Plan negotiation points to amend those clauses for more flexibility.
• Negotiate Downward Adjustment Rights: While vendors prefer you only scale up, large enterprise deals can sometimes include a right to reduce usage under specific conditions. If you anticipate potential downsizing (such as retiring a division or moving workloads off VMware), negotiate a clause that allows you to reduce license counts or spend by a certain percentage at the midpoint of the term or at renewal without penalty. Even if Broadcom resists, raising it may at least lead them to offer other concessions in exchange for a firmer commitment.
• Transfer and Geographic Flexibility: Ensure the contract allows for transferring licenses across your organization’s entities and geographies. Broadcom should allow, for example, that if one subsidiary is not using its licenses, they can be reassigned to another within the corporate family. Similarly, cloud portability is important – if you shift workloads to cloud environments, your licenses (especially for something like VMware) should be portable and not tied to on-prem hardware. Clarify these rights to avoid paying double for “cloud versions.”
• Product Substitution Clauses: Given the possibility of Broadcom discontinuing or significantly altering products (as seen when some VMware products were shelved post-acquisition​), negotiate a safeguard: if a product you’re licensing is end-of-lifed or merged into something else, you have the right to an equivalent product or a pro-rated refund/credit​. This protects you from being stuck paying for a product that no longer exists or meets your needs.

Pitfalls to Avoid:

• Accepting One-Sided Terms Blindly: Do not assume “industry standard” means fair. Broadcom’s contracts may lack clauses you consider standard (for example, some customers were surprised by the lack of a cap on support fee increases or the inclusion of strict audit rights without notice). Always push back on terms that put too much risk on you, such as unlimited audit penalties or mandatory arbitration in a vendor-friendly jurisdiction.
• Ignoring Assignment or Acquisition Clauses: If your company may undergo M&A or divestitures, check the contract for change of control or assignment restrictions. Broadcom might require consent or even terminate licenses if a competitor acquires you, for instance. Negotiate neutrality – that licenses will continue under any reorganization of your company. Failing to do so could leave you scrambling for new licenses during a corporate merger.
• Overlooking Data Security and Privacy Terms: When using security products (such as Symantec) or any SaaS components, ensure the contract addresses data handling, breach notification, and compliance with relevant regulations (e.g., GDPR). Broadcom’s template may not provide the necessary protections for sensitive data. Don’t treat these as boilerplate – ensure they meet your company’s policies and legal requirements.
• Non-Negotiable Mindset: Broadcom may claim certain terms are “non-negotiable.” While some may indeed be core to their policy, don’t take the first no as final. If a term is important (e.g., a cap on annual price hikes), escalate and explain why it’s a deal-breaker for you. You’d be surprised – with significant deals, even supposedly non-negotiable terms have been tweaked. Not asking is a sure way to get nothing.

Actionable Recommendations:

• Prepare a Term Sheet: Create a list of the top 5–10 contractual terms you need to negotiate (beyond pricing). For each, write your preferred language and rationale. Provide this to Broadcom early, so their legal team can’t claim last-minute surprise. For example: “Add clause: Customer may decrease user count by up to 15% at renewal if business circumstances change (merger, downsizing). Rationale: aligns costs to usage.”
• Include Flexibility in RFP (if applicable): If you use an RFP or informal quote process, include questions about flexibility: “Can you provide termination for convenience? Can we transfer licenses globally?” This flags to Broadcom that these items will factor into your decision, potentially prompting them to offer solutions like a shared pool of licenses or a flexible cancellation option, possibly with a fee.
• Document All Exceptions: Any special agreements or promises outside the standard contract should be captured in writing, ideally as an addendum or amendment to the contract. Verbal assurances like “we’ll allow you to do X when needed” are not enforceable. If Broadcom agrees to something like a future license swap or a price hold, ensure it is written into the agreement or, at the very least, in a side letter signed by both parties.
• Legal Review & Scenario Planning: Have your legal counsel do a risk scenario exercise on the contract: “What if we need to reduce usage? What if Broadcom audits us? What if we are acquired? What if performance is poor?” Use the findings to drive last-minute negotiations on terms. Even if you can’t get everything, you may secure at least partial protections (e.g., extended cure periods for any compliance issues, or a right to buy additional licenses at a fixed rate if audited, instead of heavy penalties).
• Escape Hatch for Non-Performance: Try to include a clause that allows you to opt out if Broadcom fails to deliver certain service levels or if product support deteriorates significantly. This could be the ability to exit a portion of the contract or get credits. For example, “if critical support response times exceed X hours more than 3 times in a quarter, the customer may terminate support for that product with 30 days’ notice and receive a pro-rata refund.” Broadcom may resist, but raising support performance in contract terms underscores your expectation of quality service (and sets the stage for the next section on support).

Global Deployment and License Portability

Overview: For multinational organizations, managing Broadcom licenses across different countries and subsidiaries adds complexity. Broadcom’s portfolio includes older contracts from CA or Symantec that may have been regional, as well as new global agreements.

Issues that often arise include transferring licenses between regions, consolidating contracts globally, dealing with local resellers versus direct sales, and ensuring compliance in each jurisdiction.

Additionally, certain Broadcom products, especially those affected by acquisition changes, may have usage restrictions by geography or require data residency considerations for cloud services. Ensuring global license portability and a unified view of entitlements is key for enterprise procurement efficiency.

Best Practices:

• Global Master Agreement: Whenever possible, negotiate a global master agreement with Broadcom that covers all your entities. This master should allow central management of license quantities with sub-allocations to affiliates. It streamlines compliance and ensures the same discounts/terms apply worldwide. Local appendices can handle country-specific legal requirements if needed, but the core pricing and usage terms remain uniform.
• Consolidate Renewals: If you have disparate contracts (such as a legacy Symantec deal in Europe and a CA mainframe deal in North America), work to co-term and consolidate them with Broadcom. This might mean a one-time alignment where some contracts are extended or shortened. The benefit is one negotiation event instead of many, which maximizes your leverage and reduces administrative overhead​.
• License Portability: Ensure your licenses are portable across regions. For instance, if you reduce usage in one country and increase in another, the contract should allow shifting those licenses without a new purchase. This is particularly important for user-based licenses during company reorganizations or for VM-based licenses when moving workloads between data centers globally. Broadcom’s contract should not restrict usage to the originally licensed site or entity, unless export control laws apply, which should be addressed separately.
• Currency and Tax Considerations: Broadcom deals can be priced in various currencies. If you have global operations, negotiate the currency strategically – possibly keeping it in USD to avoid foreign exchange swings, or splitting by region if that provides a natural hedge. Also, clarify who (the vendor or the customer) is responsible for VAT/GST or withholding tax in different countries. Clear terms prevent disputes with Broadcom’s billing or local tax authorities later on.

Pitfalls to Avoid:

• Local Purchase Silos: Sometimes regional offices purchase software through local channels without leveraging global pricing. This can lead to paying higher local prices and contract fragmentation. Avoid this by enforcing a procurement policy that requires all Broadcom software acquisitions to route through a central team or, at the very least, use the global agreement. If Broadcom sales approach a division in another country, ensure they loop back to the central procurement team.
• Partner Channel Limitations: Broadcom has shrunk its partner network and focused on direct sales to top accounts. In some countries, you may have no choice but to buy directly. In some cases, only one reseller may be available, reducing competition. Don’t expect the old flexibility of multiple resellers competing in every region. Failing to account for this could lead to delays or less favorable terms if a local partner isn’t offering a good price and there is no alternative. Address this by using the global deal or by having Broadcom commit to global discount levels that partners must honor.
• Compliance in Different Jurisdictions: License compliance (and audits) can get complicated globally. Different privacy laws may restrict data for audits (e.g., sending usage data outside the EU). Broadcom’s audit clause should be vetted for global operations to ensure it accounts for local laws. For example, it could specify that audits in the EU will comply with GDPR and involve anonymized data, etc. Failing to tailor this can cause legal complications during an audit.
• Ignoring Local Support Needs: Global deals are great for pricing, but don’t ignore support in each region. If you have a global agreement, confirm that Broadcom can support your operations globally as well. For example, if you need Japanese language support for a product used in Japan, include that requirement. Global license rights mean little if one region can’t effectively use the software due to a lack of local support or resources.

Actionable Recommendations:

• Centralized Asset Management: Maintain a global inventory of Broadcom software deployments and entitlements. Use a single software asset management (SAM) tool or database to track all licenses globally. This will help you spot if you’re over-licensed in one area and under-licensed in another, enabling rebalancing under the global agreement. It also provides evidence in case Broadcom challenges usage in a specific region.
• Appoint Regional License Stewards: While central procurement drives the global deal, appoint a responsible person in each key region to oversee license use and compliance locally. They can feed requirements to the central team before renewals and ensure local teams adhere to the agreement terms. This hybrid approach maintains global alignment while respecting the on-the-ground realities of local offices.
• Negotiate Global Discount Guarantees: If Broadcom insists certain purchases must go through local channels, negotiate a clause that those purchases will receive the same discount or better than the global deal. Alternatively, agree on a rebate structure, for example, where local entities pay the reseller. Still, Broadcom provides a centralized rebate to you, ensuring that overall spend yields the negotiated effective discount. This prevents regions from being penalized cost-wise for not buying directly under the main contract.
• Plan for Data Sovereignty (if SaaS): Some Broadcom offerings, especially Symantec’s cloud-based services or future SaaS versions of CA and VMware tools, may have data residency implications. Ensure the contract allows you to specify data center locations for cloud services if required, and that moving users across regions doesn’t violate any terms. Also, include clauses that require Broadcom to adhere to local data protection laws and assist with compliance documentation – this could be important for using security products in sensitive jurisdictions.
• Audit Simulations Globally: Before any official audit, conduct internal “audit simulations” in various regions. Different regions may have unique ways of deploying software (e.g., a subsidiary might unknowingly use a license outside the agreed-upon scope). Catch these internally. If you find any unauthorized usage (such as software duplication in a remote branch), rectify it through your global agreement (perhaps by allocating an extra license from a surplus area) to avoid trouble.

Cost Benchmarking and Pricing Targets

Overview: Establishing cost benchmarks and clear pricing targets is vital when negotiating with Broadcom. Broadcom’s pricing tactics post-acquisition have often resulted in extreme quotes – some clients report initial renewal offers at 300-400% of previous spending​.

To avoid sticker shock or reactive negotiations, procurement should determine what fair value looks like in advance. Benchmarks can come from historical spend (yours or industry averages), and should consider not just license fees but total cost (support, etc.).

Setting a target price or percentage increase that you deem acceptable gives you a goal in negotiations and a baseline to measure Broadcom’s proposal against. It also helps communicate internally what outcome you’re driving toward, managing stakeholder expectations.

Best Practices:

• Leverage Historical Data: Use your spend history as a benchmark. How much were you paying for these products pre-Broadcom? Adjust for any increase in scope or users to make a fair comparison. This historical baseline can be your starting point (e.g., “last year we paid $X for support on product Y, so Broadcom’s proposal of $4X is clearly out of line without major new value”).
• Industry Benchmarks: As mentioned earlier, gather data from industry sources. For example, if Gartner or another analyst says “Broadcom’s average price per endpoint for Symantec is $Z,” use that. If none are published, consider issuing an RFI to third-party maintenance providers for support on the products; their pricing can indicate what a competitive market rate might be. However, keep in mind that third-party support is usually cheaper due to its limited scope.
• Total Cost of Ownership (TCO): Calculate TCO over the expected term (say 3 or 5 years). Include license/subscription fees, implementation costs, required hardware, support, and even indirect costs like training or downtime risk if support is subpar. By comparing Broadcom’s offering TCO to alternatives or to doing nothing, you can quantify its value. This can also justify decisions like investing in a cheaper solution if Broadcom’s total cost of ownership (TCO) is significantly higher.
• Define your Walk-Away Point: Internally decide what your walk-away threshold is. For instance, “If Broadcom’s final offer exceeds $Y million annually, we will not proceed and instead execute Plan B (alternative strategy).” Knowing this threshold helps you negotiate confidently and signals to Broadcom that you have limits. It’s based on benchmarks – if all data says it should cost no more than Y, you empower yourself to not cross that line.

Pitfalls to Avoid:

• Benchmarks Becoming Ceilings: Be careful that a benchmark doesn’t become a de facto fixed price you reveal too early. If Broadcom senses your target is, say, a 10% increase, they might ensure they come in just under that but still far above what you could have potentially achieved. Use benchmarks as a guide for yourself, but let Broadcom make the first detailed offer whenever possible so you don’t leave money on the table.
• Focusing only on Percentage Increases: A high percentage increase on a very low baseline might still be a good deal, whereas a lower percentage increase on a high baseline could be worse. Look at the absolute dollars and value. For example, a 50% increase on a $100k contract (to $150k) might be fine if you doubled usage or hadn’t had a price hike in years. But a 15% increase on a $10M contract is $1.5M extra per year – a huge impact that might be unjustified. Context matters.
• Ignoring Quality for Cost: Sometimes, a lower cost isn’t truly better if it comes with compromises, such as worse support or missing features. If Broadcom offers a cheaper deal but, say, moves you to a lower support tier or an older version of software, that might end up costing you elsewhere, such as downtime or a security risk. Make sure benchmarks and targets assume equivalent service levels and product versions. A fair price meets your needs at the right quality, not just the lowest price.
• Not Updating Benchmarks: The software market is constantly changing. If you’re using outdated benchmark info (e.g., from a report 3 years ago), it may mislead you. Update your benchmarks close to negotiation time. Broadcom’s situation evolves too – for instance, after the VMware acquisition, cost structures changed drastically in a short time​. Your benchmarks must reflect the current state (perhaps “post-Broadcom” pricing norms, which are unfortunately higher than “pre-Broadcom” norms).

Actionable Recommendations:

• Benchmark Report to Stakeholders: Create a concise report or slide deck for your executives summarizing the benchmark data and your cost targets. E.g., “Market data suggests similar companies pay between $x-$y per user for this software. Our goal is to secure $x for our volume. Broadcom’s initial quote equates to $z per user, which is above market by 30%.” This equips your leadership to back you up in tough negotiations and prevents them from caving due to a lack of context.
• Consider Cost per Capability: If cross-product bundling makes direct benchmarking tricky, break it down by capability. For example, compare Broadcom’s security suite cost to the combined cost of best-of-breed alternatives (identity management, endpoint protection, and DLP separately). If Broadcom is higher than that sum, use it as leverage: “We could buy top solutions for each area for less than this bundle – you need to come down, or we will seriously consider that route.”
• Use RFPs for Benchmarking: Even if you intend to stick with Broadcom, issuing an RFP to competitors for key components can provide concrete alternative pricing. For example, an RFP for “virtualization software for 500 hosts” might get you quotes from other vendors. These serve as hard benchmarks. If nothing else, they can be used in conversations: “We have a proposal from Vendor X for Y amount. Broadcom needs to demonstrate superior value if it wants a premium.”
• Track and Celebrate Savings: After negotiations, calculate the savings achieved relative to the initial quote or market average. For instance, if Broadcom first proposed $10 million and you signed for $7 million, that’s $3 million “saved” or avoided. Document this as part of your procurement performance. It not only justifies the effort put into benchmarking but also sets a reference for the next renewal (“We negotiated 30% off their initial ask last time; expect a similar push this time”).
• Plan for Future Benchmarking: Include a clause or at least a handshake to revisit pricing if market conditions change. While Broadcom likely won’t agree to reducing prices mid-term, you can include something like a “meet or release” for add-on licenses: if during the term the market price for a product drops (say Broadcom itself lowers list prices or a new competitor emerges), you have the right to renegotiate rates for additional licenses. This is more common in hardware deals, but worth considering for software, given how Broadcom’s moves can shift market expectations.

Audit Risk and Compliance Preparedness

Overview: Software license compliance audits are a reality with any major vendor, and Broadcom is no exception. In fact, with Broadcom’s increased focus on maximizing revenue from its “franchise” software businesses, there is a concern that audit activity or compliance enforcement could rise as a tactic to drive more sales.

Broadcom’s contracts (inherited from CA, Symantec, etc.) often grant them broad audit rights. Moreover, their stricter policies – like no support for non-compliant environments – mean the stakes are high.

Being prepared for an audit and maintaining compliance is not only about avoiding penalties; it also strengthens your negotiating position. Broadcom is less likely to play hardball if you are confidently in compliance, whereas if they sense vulnerability, they might use it as leverage.

Best Practices:

• Understand Your License Terms: Different Broadcom products have different compliance metrics, such as per user, per device, per core, or concurrent usage. Ensure you have a clear understanding of how each is measured and what constitutes a license violation. For example, CA mainframe products might count MSUs or MIPS, Symantec could be per endpoint agent installed, etc. This knowledge guides what you need to monitor.
• Conduct Internal Audits: Don’t wait for Broadcom to audit you; perform your internal compliance checks at least annually. Use scripts or tools to count installations, users, and usage levels. Compare against entitlements. If you find overutilization, address it proactively (true up or uninstall). Document these efforts – it shows due diligence.
• Maintain Proof of Entitlement: Keep organized records of all licenses purchased, including SKU details, quantities, and proof of purchase or license certificates. In an audit, being able to quickly demonstrate entitlement for each deployment can significantly reduce back-and-forth. Given the acquisitions, ensure you have documentation from the original vendors (e.g., old CA license certificates are still valid proof under Broadcom).
• Audit Clause Negotiation: Whenever possible, negotiate the audit clause. Ideal provisions include reasonable notice (e.g., 30 days’ notice), a limitation on frequency (no more than once every 12 or 24 months), and that audits will be conducted during normal business hours with minimal disruption. Also, try to get a provision that if you are found to be compliant within a small variance (say, less than 5% overuse), you can purchase the extra licenses without penalty. Broadcom might not always agree, but any softening of the clause is a win.

Pitfalls to Avoid:

• Being Unprepared for VMware Compliance Changes: For example, VMware (now part of Broadcom) licensing moved to a per-core model with specific counting rules. If you continue to allocate licenses the old way, you may inadvertently exceed the limit. Some organizations were caught off guard because they needed to license 72 cores when they thought they needed only 16. Failing to adjust internal compliance tracking to new rules can create immediate audit exposure.
• Ignoring EULA Changes: Broadcom might update licensing terms (e.g., in product release notes or via email). These changes, even if subtle, can impact compliance, such as tightening the definition of “user” or prohibiting certain uses. Always review communications from Broadcom that reference license terms or policies. If in doubt, ask Broadcom to clarify in writing how those changes affect your entitlements.
• Overdeploying in Cloud and DR Environments: A common compliance issue is deploying software in disaster recovery or cloud environments without proper licensing. Ensure that if you have standby instances of Broadcom software (e.g., in a secondary data center or AWS for failover), the contract explicitly permits them or that you have those instances covered by licenses (perhaps through a cold DR clause or similar). Broadcom could count unlicensed DR installations as non-compliant if not addressed.
• Complacency After True-Ups: If you do have to true-up (buy licenses after an audit or internal check), don’t assume that’s the end. Audits can happen repeatedly. Some vendors target those who have findings for follow-up audits. So, treat the resolution as a learning moment – fix the process that allowed non-compliance in the first place (whether it was a lack of tracking, decentralized IT installs, etc.).

Actionable Recommendations:

• Audit Response Plan: Develop an internal procedure for handling vendor audits. This includes who in your company should be notified (such as procurement, legal, and IT asset managers), who will interface with the auditors, and how data will be collected and provided. Having a plan ensures you don’t scramble or accidentally provide more info than necessary. It also signals to Broadcom that you take audits seriously and will manage them professionally.
• Use Third-Party Audit Support: If a Broadcom audit is initiated, consider engaging a third-party license management specialist or consultant, if your budget permits. Firms that specialize in software audits (including ex-vendor auditors) can help you navigate the scope, validate Broadcom’s findings, and negotiate any settlement. This can sometimes save money overall, especially if the audit scope is large (covering expensive products like mainframe licenses).
• Explore Audit Certification: In some cases, Broadcom or its divisions may offer a certification program. If you regularly certify your usage (through reporting or certified tools), they may reduce your audit frequency. Explore if VMware or Symantec products offer such programs (e.g., VMware has historically had a Certified License Compliance Process for some customers). If available, joining it can grant some audit relief or at least goodwill.
• Stay up to date with policy changes: Broadcom occasionally publishes updated Maintenance Policy Handbooks or License Guides for CA and other products. Review these for any shifts in support entitlement or compliance expectations. For instance, if they change support life cycles or require upgrades to remain supported and licensed, you need to know how to stay compliant.
• Build in Audit Protection in Deals: A creative angle – when negotiating a new deal, ask for an audit waiver for a period if you’re confident in compliance. For example, “Broadcom agrees not to audit the customer for 2 years during this contract term, provided the customer maintains active subscriptions.” Broadcom might not grant it, but even a softer variant, like “Broadcom will not audit in the first year and will only do so if compliance concerns arise thereafter,” is something to strive for.

Support Models and Service Quality

Overview: The quality and structure of vendor support can make or break the value of an enterprise software agreement. Broadcom’s approach to support after acquisitions has been a mixed bag.

Many customers reported that after Broadcom took over, support resources were cut, and service became slower or less knowledgeable, especially for those not among Broadcom’s largest clients​.

Broadcom tends to prioritize high-margin support: enterprise and premium tiers for those who pay more. Understanding the support model options (such as standard vs. premium support and dedicated support engineers) and ensuring you get adequate support for your business needs is a key consideration.

Additionally, support terms (such as renewal increases and response SLAs) need close attention in the contract to avoid erosion of service over time.

Best Practices:

• Clarify Support Levels: Get a clear description of what support level is included in your agreement. Broadcom may offer a basic support as default – know the hours of operation, response time targets, and access methods (phone, email, portal) for that level. If your operations are 24/7 or global, you likely need 24/7 support. Ensure that’s included in the package or negotiate an upgrade.
• Consider Premium Support: For mission-critical Broadcom software, consider negotiating for premium support tiers. This could include a designated Technical Account Manager (TAM), faster response SLAs, or even dedicated on-site support for large deployments. The cost is higher, but it can be worth it for heavy-use products. And if you’re signing a large EA, you have leverage to ask for some premium support perks to be included or discounted.
• Link Support to Performance: Wherever possible, tie support fees to performance. For example, if Broadcom’s support satisfaction drops below a certain level (perhaps measured via quarterly reviews or ticket metrics), you get a credit or they commit to remedial action. While not common, some customers have managed to include service credits for missed response times in their contracts (e.g., a percentage of the fee refunded if the SLA is not met consistently).
• Escalation Paths: Identify and document escalation paths within Broadcom support. Know your first-line support contacts, but also have the names/contact information of a support manager or account manager who can escalate critical issues. Broadcom’s leaner support model means you might need to push harder to get attention on severity-1 issues. Having those channels defined (perhaps an executive support liaison for your account) can save precious time during an outage.

Pitfalls to Avoid:

• Assuming Legacy Support Continues: If you were used to a certain level of support from a company like Symantec or CA previously, verify that it has not changed. Broadcom might have altered support deliverables (e.g., fewer on-site visits or replacing experienced engineers with generalists). Don’t assume “Gold Support” under Symantec means the same under Broadcom – get it in writing in the new contract.
• Letting Support Lapse: Broadcom has a strict stance: if you lapse on support (maintenance), you will likely be unable to reinstate it without incurring heavy penalties or purchasing new licenses. So avoid gaps. Always renew support on time if you plan to keep using the product. Lapsed support could also mean losing upgrade rights, which is dangerous for security products that need constant updates.
• Not Budgeting Support Increases: Broadcom could raise support fees annually. Ensure you know if support is fixed or subject to annual updates. A pitfall is not budgeting for a 5-10% increase and then being in a bind later. Try to negotiate fixed support fees or capped increases. Remember that Broadcom ended certain legacy support arrangements, forcing subscription as a form of combined license and support. As a result, the concept of separate “maintenance” might shift to “subscription renewal.” In either case, plan for a possible cost increase.
• Ignoring Community and Self-Support Options: Broadcom’s support might not be as helpful for smaller issues or optimizations. Don’t ignore alternative support resources: user communities, knowledge bases, or third-party forums (even Reddit) where other customers share solutions​. While not a direct contractual consideration, supplementing vendor support with self-help can alleviate some pressure. However, never rely on unofficial support for critical fixes – push Broadcom for proper support on those.

Actionable Recommendations:

• Demand Support SLAs in Contract: Where possible, embed specific support expectations in the contract. Example: “P1 issues will receive response within 1 hour, restoration or workaround in 4 hours,” etc. If Broadcom’s standard support guide has these, reference it to make it binding. If not, negotiate a custom Service Level Agreement (SLA) for your account. This turns vague support promises into measurable obligations.
• Quarterly Support Reviews: Include a clause or, at a minimum, an informal agreement for quarterly support review meetings with Broadcom. In these, review ticket metrics, including the number of tickets, response times, resolution times, and any outstanding issues. This keeps Broadcom accountable throughout the year, not just at renewal time. Document the outcomes – if issues persist, use that record when negotiating renewals or asking for concessions (e.g., you might argue for a discount or extra resources if support was below expectations).
• Train Internal Teams: Ensure your IT staff is well-trained on using Broadcom’s support portal and knows how to properly describe issues to expedite resolution. Sometimes delays happen due to incomplete information. Investing in a brief training with Broadcom (they can often provide onboarding for support procedures) can improve your experience and reduce frustration on both sides.
• Explore Third-Party Support (Cautiously): For certain Broadcom products, third-party support providers, such as Rimini Street for CA products or others, may offer an alternative once you are out of active support or using older versions. This can be a negotiation chip – if Broadcom’s support quality or cost is unacceptable, you might threaten to switch to third-party support for non-critical systems. However, weigh this carefully: third-party support typically means no access to vendor upgrades. It might be viable for stable, legacy systems, such as an old CA workload automation version you don’t plan to upgrade. If considering this, use it in negotiation: “We might move Product X to third-party support if we can’t get acceptable terms from you.” Broadcom might then either sharpen its pencil or offer improved support to retain that maintenance revenue.
• Track Support Value: Calculate metrics like support cost per ticket or user to gauge if you’re getting value. If you spend $1M on support and only open 5 cases a year, that’s $ 200,000 per case – maybe an argument to revisit the level of support or negotiate the cost down. Conversely, if you have a high volume of issues, use that to ask Broadcom for a dedicated resource or custom support program (“We opened 100 cases, we need a named engineer who understands our environment to handle us”).

Migration and Transition Planning (Post-Acquisition Changes)

Overview: Broadcom’s acquisitions often force customers into transitions – whether it’s migrating to new licensing systems, new support portals, or even entirely new product versions and platforms.

A prime example is VMware customers now transitioning from VMware’s licensing programs to Broadcom’s systems, or Symantec customers who had to adapt to Broadcom’s support portal and account structure.

Additionally, Broadcom’s tendency to streamline product offerings can mean that you need to migrate to a new product if your current one is discontinued. Effective migration planning ensures continuity of operations and leverages the situation to negotiate support and services from Broadcom, assisting in the transition.

Procurement professionals should include transition needs in the negotiation: if Broadcom changes something, they should help you adapt at minimal cost.

Best Practices:

• Stay Abreast of Product Roadmaps: Get the latest product roadmaps from Broadcom for each major product you use. If Broadcom plans to fold Product A into Product B or replace a legacy tool with a new one, you want to know as early as possible. Broadcom has cut or sold off some tools after the acquisition (for instance, certain VMware products were discontinued or sold to third parties). Knowing this, you can plan migrations proactively rather than reactively.
• Assess Impact of Changes: For each announced change (licensing model, product version, etc.), do an impact analysis. Example: VMware going to a subscription – impact on your technical environment (do you need new license keys? any downtime to switch?), impact on finances (OPEX vs. CAPEX, as discussed), and impact on processes (new renewal dates, new portal). Catalog these impacts so you can address them systematically with Broadcom’s help.
• Leverage Broadcom Resources: Broadcom typically offers some migration assistance, especially for large clients. This could take the form of migration tools (scripts to convert agents, for example), documentation, or even professional services. During negotiations or account reviews, request migration support as part of the deal. For example, if you need to move from one CA product to a newer, Broadcom-blessed product, ask for free or discounted consulting services to help plan and execute the migration.
• Parallel Run and Testing: In any product transition, aim for a period of parallel run or extended testing. If Broadcom says, “Product X is end-of-life, you must move to Product Y,” negotiate to keep Product X supported for an overlap period while you pilot Y. This reduces risk. Broadcom might charge for extended support of a deprecated product – you can try to negotiate that as a concession or at least get a reasonable quote for it to include in your plan.

Pitfalls to Avoid:

• Waiting for the Last Minute: Broadcom’s timeline for transitions might be aggressive (“you have 6 months to migrate to the new version”). If you start late, you could end up rushing or, worse, missing the deadline and having to run unsupported. Begin planning as soon as a change is confirmed. Even if the transition is 2 years away, early testing and resource allocation in your project roadmap is wise.
• Assuming Like-for-Like Replacement: When one product replaces another, don’t assume it will have identical functionality or performance. Test the new product thoroughly against your requirements. There have been cases where Broadcom’s rationalized product line did not include certain niche features that some clients relied on, leaving them in a tough spot. Identify any gaps and raise them with Broadcom. Sometimes, they may offer an add-on or suggest a workaround, or it could be a point of negotiation (e.g., if the new product lacks a feature, you might negotiate a discount or request an enhancement).
• Overlooking Data Migration Needs: Many software changes involve migrating data, including configurations, reports, and historical records. For instance, moving from Symantec’s on-prem management to a cloud console might require exporting and importing settings. Clarify who handles that – does Broadcom provide tools? Do you need to allocate internal effort? Ignoring this can lead to costly consultant engagements later if you find out you can’t migrate easily.
• Licensing Overlaps: During transitions, you may need to temporarily maintain licenses for both old and new systems. If not planned, you could face double costs. Negotiate transition licensing – for example, Broadcom may allow you to run the old and new versions concurrently for 3-6 months without an extra charge (some call this “transitional licenses”). If you don’t discuss it, you might end up having to buy licenses for the overlap period or face non-compliance.

Actionable Recommendations:

• Create a Transition Roadmap: Build an internal roadmap of expected transitions for the Broadcom products you use. Mark key dates, such as the end of support for current versions and when you plan to switch to new versions. Treat it as a sub-project within your IT strategy. This way, you can also budget for any needed upgrades or migration services ahead of time.
• Negotiate Training & Certification: As part of transition support, ask Broadcom to provide training sessions for your admins on the new systems. If a new portal or version is coming, vendor-led training (online or onsite) can help accelerate your team’s proficiency. Ideally, include a certain number of training credits or seats in your agreement. This reduces the learning curve and reliance on expensive external consultants.
• Use Transition as Leverage: Interestingly, a forced transition can give you negotiation leverage. Example: If Broadcom tells you you must move to subscription, that’s an inconvenience for you – leverage that to ask for price locks or extra discounts (“In light of the disruption and effort on our side, we expect a concession on pricing”). Broadcom knows these changes are painful, so savvy customers turn that pain into bargaining power.
• Watch the Install Base Closely: When migrating licensing platforms (such as Broadcom moving you to a new license portal), ensure that the counts transfer correctly. There have been anecdotes of entitlements getting “lost in translation” during such moves. Perform a reconciliation: After migration, verify that the new system displays the correct number of licenses and users as the old system. If not, rectify immediately with Broadcom. Keep screenshots or records from the old system as proof of your entitlements.
• Have a Plan B for Discontinued Products: If Broadcom discontinues a product that is critical to you, evaluate alternative products from Broadcom’s remaining portfolio or a different vendor. Don’t blindly follow Broadcom’s suggested replacement if it’s not a good fit. Sometimes the best move is to use this juncture to switch to a competitor that will support the product longer. For example, if Broadcom dropped a particular analytics tool, maybe it’s time to adopt an industry-standard one. Evaluate and, if you find a compelling alternative, present it to Broadcom – they might then offer incentives to keep you on their stack, or you proceed with the alternative if it’s superior.

Negotiation Levers and Tactics for Broadcom Deals

Overview: Negotiating with Broadcom can be challenging due to their hard-nosed approach, but procurement has its leverage. Key negotiation levers include timing, volume, alternative options, and contract structuring.

Broadcom’s focus on large, committed clients means they value big deals and are averse to losing them. By smartly using levers such as showing a willingness to consider alternatives or consolidating spend into one negotiation, you can soften their stance.

Also, understanding Broadcom’s sales incentives (for example, end-of-quarter pressures or bundling motivations) allows you to time and frame your negotiation advantageously.

Below is a summary table of negotiation levers and how to use them:

Negotiation Lever	How to Use It	Benefits	Cautions
Volume & Consolidation	Aggregate your Broadcom spend into one negotiation event – e.g., co-terminate contracts across products or regions​. Present a unified volume of licenses/users.	Higher volume can earn larger discounts; Broadcom competes harder to win a big consolidated deal.	Ensure you actually have the internal alignment to consolidate; don’t promise volume that isn’t approved. Over-committing volume for a discount can backfire if usage doesn’t grow.
Alternative Suppliers (Plan B)	Actively evaluate and show alternatives (competitive products or open source). Communicate to Broadcom that you have a roadmap to migrate X% of workloads if needed​.	Broadcom fears losing long-term revenue, so they may offer concessions (price cuts, flexible terms) to prevent defection​. A credible threat to leave often elicits a better offer.	Your alternative must be plausible. Empty bluffs are risky; Broadcom’s execs have indicated they’ll let customers go if they think you won’t actually switch​. Be prepared to execute the alternative if you present it.
Timing – Fiscal/Quarter Ends	Align negotiations with Broadcom’s fiscal end (Broadcom fiscal year end is around October; quarter ends quarterly). Pushing for deal closure at these times can increase Broadcom’s willingness to discount.	Sales reps may have quotas or executives want to report big deals in certain quarters, giving you leverage for better pricing if you sign by that date.	Be careful not to slip past the desired quarter – urgency drops after. Also, ensure your internal approvals can meet the timeline; otherwise you lose this lever.
Multi-Year Commitments	Offer a longer contract term (e.g., 3-5 years) in exchange for price locks or bigger upfront discounts​. Broadcom values the guaranteed revenue.	You can secure current pricing for multiple years, protecting against increases​. Also potentially get a larger initial discount since they book more license revenue.	Commits lock you in; only commit longer if you’re reasonably sure you’ll use the product for that term. Also, include escape clauses for major issues because you’re tied up longer.
Staged Purchases / Phasing	If you plan to expand usage, negotiate now the price for future increments (e.g., pre-negotiate unit prices for an extra 20% licenses next year). Alternatively, threaten to phase out usage and thus reduce future orders.	Locks in favorable rates for growth or gives Broadcom incentive to keep pricing low to encourage you to expand. It also removes uncertainty for budget planning.	If you overestimate growth, you might end up with unused pre-negotiated allotments (though better than overpaying). Also, avoid clauses that force you to buy the committed growth if you no longer need it.
Executive Engagement	Involve your CIO/CFO in negotiations with Broadcom executives. Use executive relationships to appeal for a win-win and highlight strategic partnership.	Broadcom might give ground on certain terms when pressed by a C-level, especially if the relationship value is emphasized. It also helps in escalation if talks stall.	Make sure your exec is well-briefed on the objectives and doesn’t inadvertently agree to something suboptimal just to maintain amicability. Executive pressure should complement, not override, your strategy.
Public Reference / Case Study	Offer to be a customer reference or case study for Broadcom if a satisfactory deal is reached. Marketing value can sometimes translate to commercial value.	In some cases, vendors exchange better pricing for reference-ability or speaking at events. If you’re comfortable, this can be a soft lever to gain a perk.	Only offer what your organization permits (some have policies against endorsing vendors). And ensure the trade-off is worth it – a small discount for lots of your time may not be a good deal.
Contract Length Flexibility	Conversely, consider a shorter term (1 year) if Broadcom’s terms are too rigid, to retain flexibility. Use the possibility of a short-term renewal as leverage (“we’ll only do 1 year if terms don’t improve”).	Broadcom prefers multi-year; saying you might do a short term can push them to improve the offer to lock you in longer. A short term also gives you an earlier opportunity to renegotiate or exit if needed.	This can reduce your discount in the short run (shorter deals often cost more annually). It’s a leverage play – be prepared that if Broadcom doesn’t budge, you might end up with a high-cost 1-year deal, so use it judiciously.

Pitfalls to Avoid:

• Showing Your Hand Too Early: It’s important to use these levers tactically. For example, don’t reveal your alternative supplier evaluation in detail until you’ve gotten Broadcom’s initial offer – otherwise, they might bake in assumptions. Sequence your negotiation moves: start with asking for better pricing based on value and benchmarks; introduce the alternative as a backup if needed to break a stalemate.
• Combining Too Many Levers at Once: If you try to use all levers (e.g., “We want a huge volume discount, and we might leave, and we want a multi-year contract, but maybe just 1 year if it’s not good…”), the message becomes confusing or loses credibility. Prioritize the levers that align with your strategy. For instance, if you’re committing long-term, then emphasize volume and multi-year options. If you’re seriously considering leaving, then emphasize alternatives and short-term options. Tailor the approach.
• Overcommitting in the Heat of Negotiation: Sometimes, to get a deal done, one might agree to a higher volume or longer term than is ideal, tempted by a discount carrot. Avoid this trap. Stick to your pre-defined walk-away points and realistic needs. Overcommitting might win you a battle (in the negotiation), but it will lose you the war (being stuck with excess or inflexible commitments).
• Underestimating Broadcom’s Resolve: Broadcom leadership has openly stated that they are willing to let some customers go if they are not large or profitable. If you’re a smaller account, the alternative threat might not faze them as much as it would, say, Microsoft or Oracle. So, calibrate your tactics based on how important your account is to Broadcom. For strategic big accounts, you have more levers; for smaller ones, you may need to lean more on cost justification and modest commitments rather than threats.

Actionable Recommendations:

• Plan Your Negotiation Playbook: Before entering discussions, outline which levers you will use and in what order. For example: Round 1 – push on pricing with volume data and benchmark (no threats). Round 2 – if not satisfied, introduce that you’re evaluating competitors (show some data). Round 3 – if needed, bring in the exec and hint at willingness to only do short-term if terms aren’t palatable. Having a planned sequence prevents knee-jerk concessions.
• Use Silence and Patience: A classic tactic – after making your ask (say, a steep discount or a critical term), be comfortable with silence. Let Broadcom come back with a counter. They often will, even if initially resistant. Patience is key; don’t rush to fill silence with a weaker ask. Broadcom’s negotiators are trained; you can be shrewd as well by not showing impatience.
• Document Agreed Levers: If, as part of the negotiation, Broadcom agrees to certain things (e.g., a future price on extra licenses, or a right to swap products), capture that in the contract or at least in a signed meeting summary. Verbal promises evaporate if the account manager changes. So every lever that yielded a concession should result in a written commitment.
• Post-Negotiation Debrief: After the deal, do a brief post-mortem with your team. What levers worked, which didn’t? This will be valuable for the next cycle, with Broadcom or other vendors. Perhaps you found that the alternative threat was extremely effective, or maybe Broadcom didn’t budge until your CFO called their VP – note that. Over time, you’ll build a playbook tailored to Broadcom’s style, which will only make you more effective in future negotiations.
• Maintain Professionalism: Lastly, while negotiations can get tense (especially if Broadcom takes a hard line), keep the tone professional and data-driven. Procurement can be “tough” without burning bridges. Today’s negotiation team will likely be around for future renewals – you want a reputation as a firm but fair customer. Then Broadcom will know they can’t pull high-pressure tricks easily, but also that you’re open to solutions that work for both sides (if they step up in terms of value and fairness).

Volume Commitments and True-Up Management

Overview: Broadcom contracts often involve commitments to certain license volumes or spend levels. Understanding and managing these commitments is crucial to avoid surprises. A volume commitment might be a specific number of licenses (e.g., a minimum of 1,000 user licenses paid annually) or a monetary spend commitment in a PLA.

True-up terms dictate how you add licenses if you exceed the volumes during the term, and whether there are any penalties or backdating. Broadcom’s style has been to require large upfront commitments, such as the 72-core minimum for VMware CPU licensing, which effectively forces you to overbuy if you have smaller deployments.

Negotiating reasonable volume terms and handling true-ups strategically can save money and headaches.

Best Practices:

• Negotiate Reasonable Minimums: Push back on exorbitant minimum commitments. If Broadcom’s proposal has a high baseline that you don’t currently use, provide data to argue for a lower starting point. For example, if they want you to commit to 10,000 users for a security product but you currently have only 8,000, negotiate to start at 8,000 with provisions to true up as you grow, instead of paying for 2,000 “ghost” users from day one.
• True-up Windows: Try to set specific true-up intervals, such as annually. This way, if you exceed your entitlement, you only need to reconcile once a year, not immediately when it happens. This gives you time to plan a budget for the true-up and potentially catch any fluctuations (for example, usage might decrease later in the year, offsetting an earlier spike).
• Unit Pricing for True-Ups: Pre-negotiate the unit price for any additional licenses you buy during the term. Ideally, lock it in at the same discounted rate as the initial purchase. For instance, if you’re paying $50 per license now, any true-up licenses should also be $50 (or at least not list price). Avoid agreements where mid-term additions are at a higher “undiscounted” rate.
• Carry-Forward Allowances: Negotiate if possible a small buffer or allowance. For example, if you go over the licensed count by a few percent, you won’t be penalized until renewal. Some contracts allow, for example, 5% overuse to be settled at renewal without breach (this is uncommon with Broadcom, but large customers may manage a tolerance). This can protect you from minor usage fluctuations triggering an immediate purchase.

Pitfalls to Avoid:

• Overcommitting to Get a Discount: Vendors often tempt with: “If you commit to 20% more licenses, we’ll give you a 5% extra discount.” Unless you are very certain you’ll need those, this math rarely works in your favor – you pay 20% more to save 5%. It’s usually better to commit to your current need and then adjust if needed (even if at a slightly lower discount) when you use it.
• Ignoring Overage Penalties: Some agreements specify that if you are found to be over the licensed amount, you pay not just back maintenance but also a penalty or backdated fees from when the overage began. Be very clear on these terms. If they’re harsh, push to convert it to a normal true-up (purchase the excess moving forward, no punitive fees). Ignoring these could lead to a nasty bill if you slip up on compliance.
• Complex Metric True-Ups: If the metric is not a simple count (for instance, mainframe MIPS or an aggregated metric), true-ups can be complex. Ensure there is clarity on how to measure and true up. If it’s something like “peak usage in a year,” know how that’s determined (average vs peak, etc.). If unclear, you could be charged for peak usage even if it was just one day of the spike. Try to negotiate to use average or standard usage levels for fairer true-ups.
• Multi-Year Commits Without Flexibility: If you commit to a certain volume for a 3-year term, verify if you can ever reduce it (likely not, but check renewal). Sometimes, a contract may allow for adjustments at renewal. If not, know that even if your usage drops, you’re paying for that commit. This is why being conservative in committing is wise; it’s easier to add later than to subtract.

Actionable Recommendations:

• Monitor Usage vs. Entitlement Continuously: Keep an internal dashboard of your license usage against your committed entitlement. If you see trends that you will exceed your entitlement months before the true-up date, you have time to strategize: maybe shift some usage to alternative solutions temporarily or negotiate an early true-up at a better rate before you exceed your limit too much. Never let an unexpected overage catch you off guard at true-up time.
• Mid-Term Check-ins: If you have an annual true-up, do a semi-annual internal true-up simulation. If you find you’re already over, you could approach Broadcom mid-term to purchase additional licenses at your pre-negotiated rate rather than waiting. This shows proactiveness and might be better than letting a huge overage accumulate. But only do this if the overage is certain and sustained.
• Utilize “Growth Bundles”: Broadcom sometimes offers bundles that include a growth allowance. For instance, a subscription that allows up to X% more usage than before requires a higher payment. If they have such an offering, evaluate it. It could be more expensive initially, but it will prevent surprise costs later. If not offered, ask if they can create a pool of “burst” licenses for temporary needs, especially for things like extra VMware capacity for short-term projects.
• Clauses for Mergers or Divestitures: Volume needs can change drastically if your company acquires another or sells off a division. Negotiate terms for these situations, for example, if you acquire a company, you can add their Broadcom licenses to your agreement at a predetermined rate. If you divest, you can transfer some licenses to the new entity or terminate the corresponding licenses without incurring a penalty. This kind of clause can save huge costs in M&A scenarios, which are otherwise not covered and could leave you out of compliance or overcommitted.
• Keep Sales Reps Informed (Tactically): Interestingly, letting Broadcom know you are closely watching usage can sometimes prompt them to check in and offer to sell more licenses before an audit. This is double-edged: it might lead to pressure to buy, but it also indicates that you won’t be caught off guard. If you have a cooperative rep, sharing that “we’re at 90% utilization of our licenses’ might lead them to propose a deal for an incremental purchase at a good rate (especially at the end of the quarter), which you could use or decline. Manage this carefully to avoid it being seen as a weakness – frame it as “we may need more next quarter, what can you do for us if that’s the case?”

15. Multi-Year Agreements vs. Short-Term Flexibility

Overview: Broadcom often prefers multi-year commitments – it secures revenue and reduces sales cycles. From the customer’s side, a multi-year agreement (3+ years) can lock in prices and provide budget predictability, which is valuable given Broadcom’s tendency for price hikes.

However, long commitments also reduce flexibility if your needs change or if better alternatives emerge. On the other hand, a one-year or short-term deal gives you agility but may come at a higher annual cost and puts you back in frequent negotiations (with potentially even less leverage if you’re out of contract). Choosing the right term length is a strategic decision balancing cost stability versus flexibility.

Best Practices:

• Align Your Term with the Strategy Horizon: Consider your IT roadmap. If you are confident that Broadcom’s products will remain in use for the next 3-5 years and you don’t foresee replacements, a multi-year deal makes sense to stabilize costs. If you have major uncertainty (e.g., a plan to evaluate moving off a Broadcom platform in 1-2 years), lean toward a shorter term to avoid getting locked in.
• Negotiate Price Locks and Caps: In any multi-year deal, ensure pricing for the term is fixed or at least capped. For instance, negotiate that years 2 and 3 are at the same price as year 1, or only a small, pre-defined increase. Avoid agreements where year 1 is discounted but later years are “to be negotiated” – that opens you to big increases. If it’s a 5-year term, sometimes vendors want to renegotiate at year 3 for extension; resist that or at least have a clause that if no new agreement, year 4-5 remain at prior rates plus a minimal uplift.
• Mid-term Review Clauses: In a longer agreement, include formal review points. For example, at the 24-month mark, both parties will review if the agreement still meets needs and can make adjustments if mutually agreed. This isn’t an exit clause, but it’s an opportunity to address issues rather than letting them fester until renewal. Broadcom might agree to this as it doesn’t automatically change anything legally. Still, it gives you a platform to renegotiate if something is not working (such as support issues or feature gaps).
• Opt for Co-termination: If you sign multiple product agreements at different times, try to align their end dates eventually. You might do a 3-year plan for one now and a 2-year plan for another, so that both come due together. This sets you up to possibly consolidate or at least renegotiate both with maximum leverage at that future point.

Pitfalls to Avoid:

• Long-term without escape: Committing to 5 years without any exit clauses (such as termination for convenience or at least for breach or performance issues) can be risky. If Broadcom’s product strategy changes unfavorably or if your company strategy shifts, you’re stuck. Always evaluate worst-case scenarios before committing to a long-term plan.
• Ignoring Renewal Alignment: If you have a 5-year EA but some products in it have support renewals or versions that reach EOL in 3 years, you may incur unplanned costs. E.g., hardware or OS support for an appliance might expire sooner. Don’t let the term extend beyond key lifecycle dates unless Broadcom commits to covering those (such as hardware refreshes or version upgrades) as part of the contract.
• Too Short = No Leverage: On the other hand, a 1-year term every year can be costly. You’ll face annual increases with little negotiating power each cycle, and Broadcom might not prioritize you as a strategic partner. If you must go short, have a strong reason (such as pending a replacement decision) and try to keep other levers, like volume or references, to still receive decent treatment.
• Overlooking Evergreen Clauses: Check if the contract auto-renews. If you sign a multi-year contract with auto-renewal, Broadcom might include a clause like “after the initial term, it renews yearly with a x% increase unless notice is given.” Be wary of that – if you forget to give notice, you may be charged for a higher-cost extension. Better to remove auto-renew or require mutual agreement to renew.

Actionable Recommendations:

• Model Different Term Scenarios: Financially model 1-year, 3-year, and 5-year deals. Include the likely discount differences and any expected price hikes. For example, maybe a 1-year is full price $X, a 3-year might come with 10% off, and a 5-year might come with 15% off. Calculate the total spend in each scenario. If the difference is minor, you might opt for a shorter term for flexibility, or lean longer but with safeguards if the savings are large.
• Get a Commitment on the Roadmap for the Long Term: If you’re giving Broadcom a long contract, ask them to commit to you as well. This could be through a roadmap assurance letter or inclusion in their customer advisory boards, among other ways. Essentially, in exchange for your loyalty, you want a voice in shaping the product or early access to insights. While not monetary, this can ensure your needs are heard, reducing the risk that a product change blindsides you mid-term.
• Step-up or Step-down Options: Negotiate options that allow you to adjust quantities mid-term under certain conditions. For a multi-year deal, consider allowing a one-time reduction or increase at the anniversary, with predefined pricing. For instance, “At the end of year 2, the customer may reduce licenses by up to 10% without penalty or add up to 15% at the same per-unit price.” This injects some flexibility into a long commitment.
• Keep Renewal on Your Radar: If you do go multi-year, don’t shelve the contract and forget about it until year 3. Start internal renewal strategy discussions at least 12 months before the end date (as outlined in the Renewal Strategy section). Broadcom will be less pressured since you’re “off the market” for a while, so you might need extra time to build leverage again (like evaluating alternatives afresh, for example, because things change over time).
• Short-term Bridge: If you are truly undecided about your future strategy, consider asking Broadcom for a short-term extension or bridge rather than a new, long contract. For example, a 6-month or 12-month extension of the old terms to give you time. This is sometimes possible, especially if an acquisition just happened and uncertainty is high. It’s better than rushing into a long renewal out of fear. Use that breathing room to then decide on a longer plan with more clarity.

Product Roadmap Assurance and End-of-Life Safeguards

Overview: Broadcom’s heavy-handed cost-cutting and focus on profitability have raised concerns about product roadmaps and longevity. When negotiating, it’s essential to consider the risk that a product might become stagnant or be discontinued during your contract term.

For example, Broadcom trimmed VMware’s product line, and some features or tools were deprecated. Similarly, they might integrate or replace parts of Symantec or CA products with new solutions.

As a customer making multi-year commitments, you should seek assurances about the roadmap or protections in case the roadmap changes adversely. This is about future-proofing your investment – ensuring that if Broadcom’s strategy shifts, you’re not left high and dry after paying for licenses.

Best Practices:

• Request Roadmap Presentations: As part of your due diligence, ask Broadcom for a roadmap presentation for the key products you use, covering at least the next two to three years. Have them highlight planned new features, integration efforts, and any upcoming end-of-life (EOL) for versions. This not only informs your planning but also puts Broadcom on the record about commitments. You can reference these in negotiations (“Given you plan to integrate Product X into Y next year, we need to ensure we have access to Y without additional cost”).
• Include EOL Clause: Negotiate a clause that if a product is de-supported or significantly changed (like merged into another product line) during your term, you have the right to the successor product or an equitable remedy​. For example, “If Broadcom discontinues or removes from its price list Product A, Broadcom will provide Customer with an equivalent license for Product B (successor) at no additional license cost, with support fees not increasing beyond what A’s were.” This ensures you’re not forced to repurchase something you’ve already effectively paid for.
• Favored Customer Status for New Tech: If Broadcom rolls out a new product meant to replace an existing one (such as a cloud-native version of a tool), negotiate for automatic access or a very favorable migration path. Early adoption programs, free temporary licenses to trial the new tech, or swap programs (where you can swap your old licenses for new product licenses 1-for-1) are things to look for. It’s easier to get this committed up front than to do it after the fact.
• Stay Engaged with Product Teams: Beyond the contract, try to engage with Broadcom product management through advisory boards or user groups. The more insight you have into their development pipeline, the better you can adapt. It also gives you opportunities to influence features that may be critical to you, ensuring the product remains viable for your needs and mitigating the risk of stagnation.

Pitfalls to Avoid:

• Ignoring Broadcom’s Track Record: Broadcom has a reputation for reducing R&D and focusing on core profitable features​. If you assume the pace of innovation will be the same as before the acquisition, you may be disappointed. Calibrate your expectations and contract terms accordingly. For example, don’t rely on a promised feature unless it’s in writing or you have a backup plan in case it doesn’t appear.
• Failing to Plan for Alternatives: Even with roadmap promises, have a contingency if a product isn’t meeting needs. A pitfall would be to fully rely on a Broadcom promise (“Feature X will come next year”), structure your plans around it, and then have it delayed or canceled. Always have a plan B internally (even if just a manual workaround or another tool) so you’re not crippled if Broadcom under-delivers.
• Assuming Integration = Free Benefit: Broadcom might integrate an acquired product into its own platform (e.g., integrating a security feature from Symantec). Sometimes, they might consider it a separate module or license. If they tout integration on the roadmap, clarify whether that will be included for existing customers or sold separately. Don’t assume you’ll automatically get everything new – ask and, if critical, get it in the contract that new integrated features are included for you.
• Not Monitoring EOL Announcements: Vendors issue EOL and EOSL (end-of-support-life) notices for products or versions. If you don’t keep track, you might miss that, say, version 12 of your product will be unsupported next year. Broadcom will expect you to upgrade, possibly to a version that requires new licensing. Always keep an eye on official notices or portals for such announcements.

Actionable Recommendations:

• Add a “Product Continuity” Schedule: In the contract, you can add a schedule that lists the products and versions you’re licensing and attach Broadcom’s commitment to support them through specific dates (if possible). It might reference their standard support policy, but highlight any special arrangements you negotiated (such as extended support). Also include any specific future products they promised. This makes it part of the contract bundle.
• Budget for Upgrades: Even if Broadcom doesn’t discontinue a product, they will release new versions. Ensure you budget time and resources to keep relatively current. This reduces the risk that you fall far behind and then Broadcom ends the support for an old version you’re on, forcing a rushed upgrade. By staying updated (within reason), you align with their supported roadmap.
• Negotiate Transition Assistance: If a known change is coming (like Broadcom says, “in 2 years, we will no longer offer an on-prem version of this, only SaaS”), negotiate at signing who bears the cost of that transition. For instance, if moving to SaaS might require data migration or re-implementation, ask for credits or services to help. Broadcom might not fully agree, but even a partial concession, such as free training or some consulting hours, can help offset the pain.
• Track R&D Indicators: After the contract, monitor signs of Broadcom’s investment in the product. Are there frequent updates? Does support answering complex questions well (indicating they have expertise retained)? Are known bugs getting fixed? If you notice stagnation or decline in quality, bring it up in account reviews. Broadcom might not admit resource cuts, but you can at least express that the product isn’t meeting expectations, which could lead them to provide additional support or consider feature enhancements to keep you satisfied.
• Leverage Audit/Usage Data for the Roadmap: If a certain feature is crucial but lagging, provide Broadcom with data or business cases that explain why you need it. For instance, “We have 5,000 users and this missing feature is causing X hours of work. If not addressed, we may consider alternative solutions.” Tying it to the potential loss of business might get their product team to prioritize it. This isn’t a contract action per se, but a tactical move during the term to ensure the product evolves in a way that continues to justify your investment.

Vendor Lock-In Risks and Exit Strategy

Overview: Broadcom’s strategy is to become deeply embedded in customers’ core infrastructure, making it hard for them to leave. They focus on “sticky” products – ones that run critical operations (mainframes, security, virtualization) – which inherently create vendor lock-in. While you might not escape lock-in entirely, being aware of it and planning an exit strategy provides leverage and insurance.

An exit strategy means having a plan, even if tentative, for how you would replace Broadcom solutions if needed, including the costs and timeline, and ensuring the contract doesn’t excessively penalize you for leaving (e.g., onerous termination fees or data hostage scenarios).

By considering lock-in, you also avoid complacency and can make more balanced long-term decisions, such as not deploying every single Broadcom feature if it increases dependency unnecessarily.

Best Practices:

• Assess Switching Costs: For each major Broadcom product, evaluate the difficulty of switching. Consider data migration efforts, retraining, process changes, and the maturity of alternative vendors. This doesn’t mean you will switch, but knowing the effort helps determine how much leverage you have. If one product is relatively easy to replace (say, a standalone tool with many competitors), you can lean on that in negotiations. If another is extremely embedded (mainframe software that would require replatforming to replace), acknowledge that and instead focus on containing the cost of that item since escape is unlikely in the short term.
• Avoid Proprietary Traps: Whenever possible, use Broadcom products in ways that minimize proprietary lock-in. For instance, if Broadcom’s tool allows data export in standard formats, regularly export your data so you’re not stuck if you leave; you’ll have your data. If you use VMware, avoid custom Broadcom-only management add-ons if standard ones are available, so that moving to another hypervisor won’t orphan your configurations. Little choices can make a big difference in the long run.
• Contractual Exit Clauses: Negotiate some off-ramps. One example is a termination for convenience clause, though vendors rarely agree to that in software without hefty fees. Alternatively, ensure there are clear terminations at the end of the contract (no automatic renewals that lock you in by accident). If you’re signing a long-term deal, consider a mid-term “break clause” that allows you to exit part of the agreement (perhaps with notice) if your business needs change. Even if Broadcom won’t allow it for everything, maybe you can for a specific product that you’re less certain about.
• Third-Party Support as an Interim Option: As part of exit planning, identify whether third-party support could keep the product running while you transition. For example, if you decide to drop Broadcom’s CA product, a third-party support firm could support the old system for a year or two while you implement a replacement. Knowing this option is available reduces the risk of a “cliff” if you leave Broadcom; you won’t be left unsupported immediately. It’s a way to decouple the timing – you could stop paying Broadcom licenses but still get support elsewhere while migrating.

Pitfalls to Avoid:

• All Eggs in One Basket: Broadcom’s PLA might tempt you to consolidate many functions with them. Over-consolidation means if you ever want out, you have to replace everything, which is much harder. Diversify your IT portfolio enough that you’re not 100% dependent on Broadcom for every layer. For instance, you might use Broadcom for endpoint protection but choose a different vendor for identity management, so you’re not fully tied to a single ecosystem.
• Not Documenting Configurations and Processes: A subtle form of lock-in is organizational knowledge. If your team only knows Broadcom’s way of doing things and all runbooks are tied to those tools, switching becomes harder. Encourage documentation of processes in abstract terms, not just “click this in the Symantec console,” but rather “we perform these steps to achieve outcome X.” That way, if you replace the tool, your process knowledge is transferable.
• Perpetual License Abandonment: If you had perpetual licenses (from before the Broadcom era) and you transition to something else, don’t just abandon those entitlements without considering value. Perhaps keep a few running as a fallback during transition, since you own them. Or see if selling them is possible (sometimes large enterprises can sell unused licenses on secondary markets if contracts allow). It’s rare, but consider any residual value in what you paid for. Broadcom may try to nullify old entitlements when switching to a subscription – be careful to retain rights to use older versions if you might need a safety net.
• No Clear Timeline for Exit: Saying “we could leave if we want” is empty unless you know how long it would take. Would it be a one-year project? Two-year? Knowing that helps because if Broadcom offers a 3-year deal and you know an exit needs 18 months, you might opt for

Third-Party Support and Maintenance Alternatives

Overview: Due to Broadcom’s high support costs and perceived decline in service, some organizations explore third-party support providers as an alternative. These are independent firms (e.g., Rimini Street, Park Place) that offer support for Broadcom-acquired products, such as VMware or CA, outside of Broadcom’s maintenance contracts.

The allure is cost savings (third-party support often charges 50% of vendor support fees) and the ability to continue using older versions without having to undergo forced upgrades. However, going third-party typically means forgoing official updates and may violate terms if the software is subscription-based (since the subscription includes support).

It’s mainly an option for perpetual license holders or those willing to stay on a stable version for a while. Procurement should weigh this option carefully – it can be a leverage point in negotiations or a short-to mid-term solution, but it’s not without risk.

Best Practices:

• Identify Suitable Candidates: Third-party support makes the most sense for mature, stable software that doesn’t require frequent updates. For example, an older version of a CA Technologies product that meets your needs and is no longer evolving might be a candidate for moving to third-party support. On the other hand, a security product that requires constant threat updates is less suitable.
• Use as Negotiation Leverage: Even if you prefer to stay with Broadcom support, getting a quote from a third-party provider can be useful. If Broadcom knows you have a viable third-party option, they may be more flexible on support pricing or terms. As one industry expert put it: *“Look at 3rd party support before just doing what the vendor tells you – there is an alternative to converting to Broadcom subscriptions.”. This doesn’t mean Broadcom will match those lower costs, but it could temper extreme increases.
• Ensure Coverage of Scope: If you do opt for third-party support, clarify what they will and will not cover. Typically, they provide break-fix support, help with configuration, and may also assist with tax and regulatory updates (for ERP or similar systems). They usually do not release new features. Work with your IT team to ensure you can live without vendor patches, as some third-party providers create their critical fixes, but not always. Also, confirm that the third-party has expertise in that product – e.g., do they have former Broadcom or CA engineers? Check references from their other customers.
• Plan for Re-entry if Needed: If you leave Broadcom support and later decide to return, for example, for a version upgrade, understand Broadcom’s policies. Often, vendors charge return support fees or require a new license purchase to return. Negotiate upfront with Broadcom (if you are in talks) the possibility of a “graceful exit and return” – perhaps a clause that you can rejoin support in the future without hefty penalties if you pay for the missing period or an agreed fee. This is tricky, but some customers who negotiate under the threat of third-party support have gotten concessions, such as a waiver of reinstatement fees after a certain time.

Pitfalls to Avoid:

• Compliance Traps: If your Broadcom licenses are subscription-based, third-party support may not be legally usable, as you lose the right to use the software once you stop paying Broadcom (subscriptions are term-based). This strategy mainly applies to perpetual licenses, which you own regardless of their support status. Don’t inadvertently violate licensing by ceasing subscription payments; it could lead to legal issues and software shutdown.
• Security and Updates Gaps: Going off vendor support means no official patches or security updates. Third-party firms often commit to providing critical bug fixes, but they may not have access to the source code for proprietary software, which limits what they can do. Ensure your security team signs off, especially for things like security software or software in your cyber defense stack. The last thing you want is an unpatched vulnerability in a mission-critical system.
• Losing Upgrade Rights: If you’re on an old version and have third-party support, you typically lose the right to upgrade to a newer version later without purchasing new licenses. If Broadcom releases a must-have new feature, you might be stuck or have to pay a lot to get current. Mitigate this by carefully considering if the version you freeze on will serve you for the foreseeable future.
• Vendor Relationship Strain: Be aware that moving to third-party support will strain your relationship with Broadcom for that product. Broadcom may respond by upping prices on other products or being less willing to negotiate kindly on the rest of your portfolio. They consider third-party support providers to be direct competitors who take their revenue. So if you go this route, be prepared for some friction. It might make sense to treat that product as separate when dealing with Broadcom on other items.

Actionable Recommendations:

• Run an RFI for Third-Party Support: If you’re considering it, run a Request for Information (RFI) or Proposal with known third-party support vendors for the specific Broadcom products. Use the results to quantify potential savings and services. Even if you don’t proceed, you can present these to Broadcom as evidence that you have done your homework and have alternatives.
• Partial Transition Strategy: You don’t have to move everything off Broadcom at once. A hybrid approach could be to keep Broadcom support for critical, evolving products (to receive updates) and move one or two stable, costly products to a third-party. This can cut costs while limiting risk. Over time, if the third party does well, you might expand their scope. Ensure this segmentation is clear to Broadcom to avoid compliance issues (e.g., do not mix usage of a product between Broadcom-supported and third-party-supported options in a way that breaches the contract).
• Contractualize Knowledge Transfer: If you are leaving Broadcom support, try to extract any relevant knowledge or tools before the contract ends. For example, download all the documentation, grab the latest patches, and maybe even run a final health check from Broadcom. If negotiating, you could ask Broadcom for a knowledge transfer session (it’s unlikely they’ll oblige if you’re leaving, but if framed as part of a transition service, it’s worth a shot). The idea is to leave with as much self-sufficiency as possible.
• Keep Tabs on Broadcom’s Moves: Broadcom might eventually adjust to third-party competition by offering lower-cost support tiers or flex options (especially if enough customers defect). Keep communication channels open and let Broadcom know why you left (e.g., cost, quality). If they introduce changes that address those reasons, they will be willing to reconsider. In a few cases, vendors have offered “amnesty” programs to win back customers from third-party support with discounted re-entry – stay alert for any such overtures.
• Legal Review: Have your legal counsel review any third-party support agreement and your Broadcom contract together. Ensure that using a third-party service does not violate any terms (some contracts have non-transferability or confidentiality clauses that could be breached if you share software details with a third party). A careful legal stance will protect you from unintended breach of contract while you pursue this cost-saving route.

19. Cloud and SaaS Deployment Considerations

Overview: As enterprises embrace cloud computing, it’s crucial to understand how Broadcom’s licenses apply to cloud and SaaS deployments. Broadcom’s portfolio includes on-premises software and cloud-based services.

For example, VMware, under Broadcom, can be used on-premises or in cloud environments, such as VMware Cloud on AWS or Google Cloud. Symantec’s security suite also has both on-premises and cloud-managed components.

Broadcom’s Portfolio Licensing Agreements (PLAs) are designed to be deployment-agnostic, covering usage whether on-premises or in the cloud, but you must confirm the details. Key considerations include license portability to the cloud, pricing for SaaS versus on-premises solutions, and ensuring compliance in hybrid environments. Cloud deployments can also introduce regional regulations (data residency) that need to be addressed in your contract and usage plans.

Best Practices:

• Clarify Cloud Usage Rights: If you plan to run Broadcom software in public cloud environments (e.g., IaaS like AWS or Azure, or as hosted solutions), ensure the contract explicitly permits this. For instance, if you want to run CA software on AWS instances or extend Symantec protection to cloud workloads, there should be no geographic or platform restrictions. Broadcom has begun to allow portability for some products, for example, VMware licenses that can be moved to certain cloud services without an additional fee. Leverage these allowances. Spell out in the order form that licenses are for “on-premises or cloud” to avoid any doubt.
• SaaS vs Self-Hosted: Broadcom may offer a product in both traditional and SaaS form. For example, Symantec Endpoint Security could be self-managed or consumed as a cloud service. Evaluate which suits you, but also compare costs. Sometimes, SaaS pricing can be higher, but it includes infrastructure; other times, it might be more cost-effective. Negotiate to allow flexibility – maybe you start on-prem and later move to Broadcom’s SaaS, or vice versa. Ideally, your agreement should allow switching the deployment model with minimal financial impact (e.g., converting remaining term license to credits for SaaS).
• Data Residency and Compliance: If you use Broadcom’s cloud services (such as a cloud management portal for security or AIOps tools from CA in SaaS form), confirm where your data will be stored and processed. Broadcom should provide documentation on its data centers and GDPR/privacy compliance. Include contractual commitments that Broadcom will meet local data protection laws. For highly regulated industries, consider negotiating the right to approve the region of data storage or to have a private instance, if needed (though this may be costly). At a minimum, ensure you have the right to terminate or receive support if the chosen region is no longer offered or if the regulations change.
• Monitor Cloud Spend: Cloud usage can sometimes grow unnoticed. If your Broadcom agreement has components that are usage-based (for example, a cloud security scanning service billed per gigabyte of data or something similar), implement monitoring to avoid unexpected bills. Even if it’s all pre-paid under an EA, you want to track consumption to ensure it aligns with what you purchased. Treat these like any cloud service – use tags or reports to attribute Broadcom-related cloud costs and watch for anomalies.

Pitfalls to Avoid:

• Double Paying for Cloud: A classic mistake is moving a workload to a cloud service (like VMware Cloud) and not realizing that your existing licenses may not be applicable. You could end up paying for a VMware-in-Cloud subscription while still owning unused on-prem licenses. Investigate if Broadcom offers conversion programs, such as trading in on-premises VMware licenses for cloud credits. Don’t let licenses sit idle while you pay again in the cloud. Arrange a conversion or sell-back mechanism if possible.
• Assuming BYOL Always Applies: BYOL (Bring Your License) to the cloud is not universal. Some Broadcom products allow it, others do not. For example, certain mainframe or network hardware-licensed products can’t be easily moved to cloud VMs. Verify each product: VMware has specific cloud provider programs, and Symantec may require using their cloud-managed service instead of yours. If BYOL is not allowed, you may need to subscribe through the cloud marketplace or a different model. Plan for this and negotiate pricing as part of your EA, possibly via private offers in cloud marketplaces at your EA rates.
• Neglecting Integration in Hybrid Mode: If part of your operations remains on-premises and part moves to SaaS, ensure the integration still works. Sometimes features differ. For example, an on-premises monitoring tool and its SaaS version might not have parity, or you may need connectors. Don’t assume the transition is seamless; get Broadcom to outline how hybrid scenarios are handled. If you need additional middleware or cloud connectors, ask if those are included or priced separately.
• Cloud Service Lock-ins: If you adopt Broadcom’s cloud services (such as a SaaS security platform), be aware that you are not only locked into the software but also its hosting. Extracting data or switching to a self-hosted model later could be difficult. Always keep copies of your data (logs, reports, configurations) in a neutral format, in case you need to switch later. And negotiate data return and deletion rights upon contract end (Broadcom should agree to return your data and securely delete their copies in SaaS offerings).

Actionable Recommendations:

• Include Cloud Migration Credits: If you plan to move to the cloud, negotiate for credits or services to help with the transition. For instance, “Broadcom will provide X hours of technical consulting to assist in migrating Symantec management to cloud,” or “if the customer moves workloads to VMware Cloud on AWS, Broadcom will credit the unused on-prem support value towards the new service.” This gets the conversation started, as you expect flexibility when modernizing.
• Review Cloud License Management: Adjust your Software Asset Management (SAM) processes to cover the cloud. If you use automation to deploy VMs or containers, implement guardrails to prevent them from unknowingly deploying Broadcom-licensed software without a license available. For example, spinning up 100 new VMware hosts in AWS would require licenses; ensure a check or approval step is in place. Broadcom’s audit rights likely extend to cloud usage as well, so your compliance tracking must span these environments.
• Leverage Vendor Cloud Partnerships: Broadcom (and its acquisitions) has partnerships with cloud providers, such as Google Cloud for VMware Engine or Symantec integration with cloud access security brokers. Sometimes, purchasing through a cloud provider’s marketplace can yield discounts or use of committed cloud spend. Explore if any part of Broadcom’s offering can be bought via your AWS/Azure spend commitments. However, compare pricing – ensure it aligns with your EA terms.
• Test Performance in Cloud: Not purely a licensing point, but relevant to value: test your Broadcom products in the intended cloud environment before full deployment. For example, test VMware’s performance on a particular cloud instance type, or Symantec’s latency for cloud scanning compared to on-premises. This will surface any need for additional licenses (such as more CPU licenses if cloud VMs are less powerful than on-premises ones) and also ensure that you size your cloud resources properly, which affects cost. Feed this information back into the negotiation if, for example, you discover you need more cores licensed in the cloud – maybe Broadcom can adjust the deal to include those if it’s done early enough.
• Stay informed about Broadcom’s cloud strategy: Broadcom may develop new cloud-native offerings or change its support for certain cloud deployments. Keep an eye on announcements (investor calls, press releases). If they start favoring one cloud provider (for example, a special deal with Google Cloud for mainframe offloading), that could benefit you or change your approach. Engaging with Broadcom’s product teams on cloud use cases (perhaps through advisory boards) can also give you a voice to push for features that ease hybrid cloud use.

20. Ongoing Governance and Vendor Relationship Management

Overview: Once the Broadcom enterprise agreement is signed, proactive governance is crucial to ensure your organization realizes its full value and remains in control. This means continuously managing the Broadcom relationship, monitoring performance against expectations, and preparing for future negotiations well in advance of the next renewal.

The Broadcom account team will likely give focused attention to large customers – they may even assign dedicated customer success managers or executives as part of their “concierge” approach for strategic accounts. Use that to your advantage by establishing a formal cadence for interactions.

Internally, treat the Broadcom EA as a program that requires oversight, just like any major project: track usage, outcomes, and any issues that arise. This prevents surprises, such as budget overruns or unmet needs, and positions you to negotiate from a place of knowledge and strength in the future.

Best Practices:

• Executive Sponsor Engagement: Identify one or more executive sponsors on both sides. For your company, it might be the CIO or VP of IT Operations; on Broadcom’s side, it could be a regional VP or senior account manager. Hold executive-to-executive meetings at least once a year to discuss the strategic partnership, not just operational issues. This elevates any concerns and also lets you hear about Broadcom’s roadmap or strategy changes straight from leadership. It sets a tone that you are a key customer whose voice matters.
• Quarterly Business Reviews (QBRs): Conduct QBRs with Broadcom’s account team. In these meetings, review key metrics, including license utilization, support ticket statistics (volume and response times), service delivery and training, and progress on any agreed-upon action items or value commitments. For example, if Broadcom promised a reduction in support response time after the last review, check it. Come prepared with your scorecard rating Broadcom’s performance. Also use QBRs to plan – if you foresee needing additional licenses or have a project that could benefit from a Broadcom solution, mention it and discuss options early (you may be able to secure a trial or special pricing).
• Internal Steering Committee: Form an internal Broadcom EA steering committee with stakeholders from IT (the technical owners of the products), procurement, and finance. Meet internally, say, every two months or quarter, to ensure alignment on Broadcom-related activities. This group should track: Are we using what we bought? Are there user complaints? Do we need to request anything from Broadcom? Are we on budget this quarter? Having this cross-functional team means issues are caught and addressed collaboratively, rather than in silos.
• Continuous Training and Enablement: Utilize any training or enablement resources included in your agreement. Broadcom can often provide knowledge transfer, whether through documentation, online portals, or workshops (sometimes bundled in large deals). Don’t let those go unused. Set up periodic training for your teams on the Broadcom tools. This not only improves utilization (so you get your money’s worth) but also prepares your staff to manage the software efficiently, which can reduce support tickets and dependency on Broadcom.

Pitfalls to Avoid:

• “Set and Forget” Approach: The worst mistake after signing a big EA is to file the contract away and just pay the bills until renewal. That passive approach could lead to “creeping shelfware,” unresolved technical issues, or missed optimization opportunities. Without active management, you might also miss if Broadcom under-delivers on something (and by the time you notice at renewal, it’s harder to claim remediation or concessions).
• Untracked Value Realization: Companies like Broadcom (and Salesforce, Microsoft, etc.) might pitch that their software will bring specific business benefits. If you don’t track whether those materialize, you can’t hold anyone accountable. For instance, if Symantec DLP was expected to reduce incidents by X%, did it actually do so? If not, why? Maybe you need more deployment or maybe the product isn’t meeting promises – either way, it should inform your strategy. Lack of tracking could mean you keep renewing something that isn’t justifying its cost, or you miss the chance to push Broadcom to help you achieve the promised value.
• Single-threaded relationships: relying on just one point of contact (such as one account manager) is risky. People leave or change roles. If that happens, you lose history and context. Broaden the relationship: get to know the account team (sales, support, technical advisors, etc.), and ensure they know multiple people on your side as well. That way, the relationship endures beyond individual personnel changes.
• Ignoring Market Changes: After a big EA, there’s a tendency to stick heads in the sand regarding the market. Don’t assume Broadcom will remain the best choice for all included products throughout the term. Keep an eye on competitors’ advancements. If someone leapfrogs Broadcom in a certain area, bring it to Broadcom’s attention (maybe they can match features or offer a better deal to stay). If Broadcom acquires yet another company and tries to push new products to you, evaluate them critically, not just as a bundle you automatically accept. In short, keep your strategic sourcing mindset active, even during the contract.

Actionable Recommendations:

• Define KPIs and SLAs in the Relationship: Early on, define key performance indicators for the Broadcom relationship. Some could be contractual (like support SLAs we discussed), others could be informal (user satisfaction scores, system uptime, etc.). Share these with Broadcom so they know what success looks like for you. For example, “We expect at least 99.9% uptime on XYZ” or “We aim for 90% of licenses utilized.” This gives them targets to align with and shows you mean to measure outcomes.
• Maintain a Risk and Issue Log: Keep a record of any issues that occur (such as major software incidents, support escalations, etc.) and how they were resolved. Also log risks (like “feature X is still missing, might need workaround”). Review this log in governance meetings. It ensures nothing falls through cracks, and when renewal nears, you have a factual history to reference for “here’s what went well, here’s what didn’t.” That can be powerful in negotiations, either to ask for concessions or to decide to reduce the scope.
• Budget Forecast Updates: Update your Broadcom-related budget forecast quarterly. If you have a prepaid EA, this is about internal allocation (did different departments consume as expected?). If parts of the deal are pay-as-you-go (for example, if it has an expandable element), check if the costs are on track. Communicate early with finance if adjustments are needed. Surprises at year-end, such as running out of funds because usage was higher, can erode internal trust in IT procurement. A well-governed EA should never have that problem because you’re keeping everyone informed.
• Prepare for Renewal Early (Again): It may seem far away, but start renewal preparation at least 12 months in advance (as highlighted in the Renewal Strategy above). Use the data and experience from your governance process to drive the renewal. Perhaps even do a mini internal RFP: “Given what we know now, would we choose Broadcom again for these solutions? What might we do differently?” Engage stakeholders in that question well in advance. It keeps Broadcom on their toes, too – if they know you’re continually re-evaluating, they’re more likely to continue earning your business with good support and maybe proactive offers.
• Foster a Partnership Mentality: Ultimately, if Broadcom is a major vendor for you, it’s in both parties’ interest to have a healthy partnership. Use governance not just to police the contract but to find win-win improvements. For example, you might identify that you’re not using a particular feature – perhaps you can swap it for another or have Broadcom provide some consulting to help you fully deploy it. Or, Broadcom might seek a customer for a beta program – you could volunteer if it aligns with your interests, gaining early influence. By staying engaged, you can sometimes receive benefits beyond the contract, such as early insights, influence on product direction, or additional discounts on new products, that wouldn’t be available if you were hands-off. A collaborative approach, backed by the firm governance structure, strikes the right balance between holding Broadcom accountable and building a mutually beneficial long-term relationship.

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