Edge HCI system vendor Scale Computing has seen sales take off as the reality of Broadcom’s VMware business changes affect VMware customer and channel loyalty.
It said increased demand for both edge computing and alternative virtualization platforms drove record growth for the company. Scale saw both new customers and partners double over the same period last year.
Jeff Ready, CEO and co-founder of Scale Computing, stated: “We are seeing our business explode to the upside in the aftermath of the Broadcom-VMware acquisition. In Q2, we closed an unprecedented number of new business opportunities, keeping us on pace to exceed 50 percent year-to-year revenue growth in 2024.”
Broadcom has changed VMware from perpetual to subscription licensing, potentially doubling customer costs or worse. VMware products were consolidated into two main bundles, VMware Cloud Foundation and VMware vSphere, increasing costs for some standalone product users.
Broadcom said this change represented “radical simplification across our portfolio, go-to-market, and organizational structure to make it easier to do business with us … Offering a few offerings that are lower in price on the high end and are packed with more value for the same or less cost on the lower end makes business sense for customers, partners and VMware. We’re putting all our R&D investment towards fewer offerings, which is a double win for customers.”
However, the changes are leading to churn in the VMware customer and partner populations. As a consequence Scale is positioning itself as a VMware alternative for both channel partners and customers – and it appears to be paying off.
Ready claimed: “This quarter we signed hundreds of new partners across all regions – North America, Latin America, EMEA, and APAC. We are committed to offering our partners and end-customers a true partnership, built upon the most innovative and resilient IT solutions on the market.”
New and current partners looking to switch customers to Scale Computing can participate in a “VMware Rip & Replace” promotion, receiving a 25 percent discount on Scale Computing software and services for each new customer implementation. VMware customers seeking alternatives can transfer existing software licenses and exchange hardware through the “Seamless Switch: Trade-Up to Scale Computing” promotion.
