business / news / / Forbes
Broadcom (AVGO) has created a predictable, high-margin franchise that is difficult for customers to exit, despite higher pricing.
Broadcom eliminated perpetual VMware licenses, requiring all customers to adopt mandatory subscriptions post-acquisition.
KEY POINTS
- Product bundling now forces clients to buy the full VMware Cloud Foundation suite, not individual tools.
- FY2025 software revenue hit $27 billion, 42% of total sales, with 93% gross margins after cost cuts.
- 2026–2027 contract expirations will reveal if clients tolerate higher pricing or begin switching to alternatives.
COMPANIES
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