On Demand Session  |  Negotiating the Big 50

Negotiating with Broadcom

The least pleasant negotiation in enterprise software right now, and one of the most winnable, because the gap between a prepared customer and an unprepared one is larger here than anywhere else. A seventeen minute session on cores, bundles, their tactics, real leverage and the clauses that decide your five year cost.

17:11 minutes10 chaptersDaniel, Senior Advisor and Claire, Expert AnalystFree, no registration

About this session

Customers arrive at this negotiation angry, which is understandable, and anger is the least useful thing to bring into the room. The severe changes are settled and none of them are negotiable: perpetual VMware licensing is gone, the portfolio is subscription only priced per core with a sixteen core per processor minimum, products sit inside bundles rather than being sold individually, and the partner channel has been cut back so the reseller who held your paper for a decade may not be a route to market.

What remains open is a great deal, and it decides an enormous range of outcomes. Opening transition quotes on perpetual estates commonly reset the annual cost by one hundred to two hundred and fifty percent before any negotiation, and customers who took no action commonly renewed at two to three times their prior support cost. With a proper core audit and a credible alternative, settlements have landed thirty to fifty five percent below list. That spread is almost entirely a function of preparation.

The session covers the three things that actually decide your number. Your licensable core count, because in a per core world your architecture is your price list and consolidation is now a pricing lever rather than an efficiency exercise. Your alternative, which does not need to cover the whole estate: a costed, budgeted migration plan for the portion that could genuinely move is what they are pricing against. And the uplift cap, because in a subscription world the price you sign is only the first year's price.

Session agenda

Every line jumps the player to that point.

  • 0:00 Welcome, and what this session coversWhat is settled, what the numbers look like, and why preparation decides the range.
  • 1:49 What actually changedYour perpetual licences still work, the bundles, and the channel that no longer sells to you.
  • 3:53 CoresThe sixteen core minimum, consolidation as a pricing lever, and counting before they count for you.
  • 6:20 The bundlesDo not fight the bundle, choose the tier, and split support by environment.
  • 8:22 How they negotiateCompress the window, anchor on list, bundle in what you do not need.
  • 10:45 Real leverageA costed plan for part of the estate, and trading term for the cap.
  • 12:39 The clausesThe uplift cap, renewal protection, co terminus dates, true down rights and exit.
  • 14:38 TimingTwelve months, not six, and why arriving late costs you the whole alternative.
  • 15:39 The numbersThe range of outcomes, and what decides where you land in it.
  • 16:12 The bottom lineEverything that made you angry is settled. Everything that decides your number is open.

The model. Redress Compliance works on contingency. You negotiate with the vendor first. When you have gotten everything you can get, bring the deal to Redress and we take 25 percent of what we save you beyond your best number. Nothing saved, nothing paid. Talk to us.

Chapters

  • 0:00Welcome, and what this session covers
  • 1:49What actually changed
  • 3:53Cores
  • 6:20The bundles
  • 8:22How they negotiate
  • 10:45Real leverage
  • 12:39The clauses
  • 14:38Timing
  • 15:39The numbers
  • 16:12The bottom line

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