“Trust, Not Features, Is the Real Deficit”: VMware Tries to Appease SMBs

The news that Broadcom-owned VMware is acknowledging its pricey pivot towards subscription-based bundles has been met with a collective shrug from small-to-medium-sized businesses (SMBs). This isn’t just about the cost of entry – it’s about the trust that’s been broken along the way.

For years, VMware was the go-to virtualization platform for many SMBs. Its flagship product, vSphere Standard, was an affordable and reliable choice for those looking to simplify infrastructure management. However, things changed when Broadcom took over and introduced VMware Cloud Foundation (VCF) as its new flagship private cloud bundle. VCF is a pricey subscription service that has priced out many SMBs, forcing them to seek alternative solutions.

Despite being told by VMware sales reps that vSphere Standard was no longer available, some customers have reported being pushed towards VCF instead. This isn’t just about aggressive sales tactics – it’s about a fundamental disconnect between what VMware says and what its sales team is doing on the ground. According to Paul Turner, chief product officer of VCF, Broadcom’s new sales incentives encouraged the sales team to push VCF, even if it meant sacrificing some customers in the process.

This prioritization can have long-term consequences for VMware. Dean Colpitts, CTO of Canadian managed services provider Members IT Group (MITG), which was recently cut from VMware’s reseller program after 19 years of partnership, has made it clear that MITG won’t be doing business with VMware in the future.

VMware’s attempt to promote private clouds as a more affordable alternative to public clouds has ultimately led to a situation where many SMBs are now considering alternatives. The issue isn’t just about price point – it’s about trust. When customers feel like they’re being sold something they don’t need, or that their needs are being ignored in favor of higher-margin products, they take their business elsewhere.

The fact that VMware is only now updating vSphere Standard raises more questions than answers. What’s taking so long? Why did it take an entire year to acknowledge the problem and promise a fix?

For VMware, this should be a wake-up call – not just about pricing strategies, but also about customer trust. If customers don’t believe what you’re saying, they won’t stick around when things get tough. It’s time for VMware to put its money where its mouth is and rebuild that trust.