Broadcom Inc. (ticker: AVGO) is expected to announce its earnings on June 3, with market observers anticipating a potentially surprising report. Recent developments reveal that Broadcom has significantly increased pricing for VMware products, reportedly hiking prices by 8 to 15 times. This change follows the termination of perpetual and pay-as-you-go licenses, which have been replaced by bundled subscription models requiring a minimum three-year commitment. These pricing adjustments have drawn comparisons to pharmaceutical pricing strategies within the enterprise software sector.
Is $AVGO the pharma of enterprise software? https://t.co/hHYIvbvJtk
Broadcom $AVGO has reportedly hiked VMWare’s pricing by 8x to 15x by ending perpetual and pay-as-you-go licenses and replacing them with bundled subscriptions with 3-year minimum contracts, per the ECCO.
Broadcom earnings may produce shock and awe https://t.co/dB0ti2JhAv