© Reuters.
SAN JOSE – Broadcom (NASDAQ:) Inc. is making significant organizational adjustments following its $61B acquisition of VMware (NYSE:), a move that has led to layoffs and the sale of various business units. The company, led by CEO Hock Tan, has revised VMware’s licensing terms, an action that industry analysts believe could lead to higher costs for customers and possibly a degradation in service quality.
In a strategy that could reshape customer relationships, Broadcom has terminated existing partner agreements with VMware resellers and service providers. The new policy requires partners to reapply, a process that could particularly affect smaller partners and potentially impact the level of customer support. Despite these changes, substantial customer defections are deemed unlikely in the current economic environment, according to feedback from VMware User Group…
