Subj : Dell is terminating its distribution deal with VMware
To   : All
From : TechnologyDaily
Date : Wed Jan 31 2024 11:45:05

Dell is terminating its distribution deal with VMware

Date:
Wed, 31 Jan 2024 11:40:56 +0000

Description:
Dell has used a get-out clause to end its agreement with VMware after the 
company got acquired by Broadcom in 2023.

FULL STORY
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In a recent regulatory filing , Dell Technologies has confirmed it will be 
terminating its commercial framework agreement with VMware by using a clause 
that would allow either party to pull out should there be a change in the 
control of the other party. 

Until November 2021, Dell had an 81% stake in VMware, but this was sold as 
part of Broadcom's takeover of the company, which also introduced several 
significant changes to VMware operations which left left many customers and 
partners unhappy. 

When Dell sold its stake in VMware in 2021, the two struck up a deal that 
would allow Dell Technologies to continue distributing the latter's products 
and services, as well as a degree of collaboration on some solutions and 
go-to-market activities. Dell ends deal with VMware after Broadcom takeover 

The January 25 filing is subject to a 60-day notice period, meaning that the 
companies are expected to part ways on March 25. 

Originally, the agreement set out: with respect to certain technologies and 
[go-to-market] activities, the Parties respective products and services work 
better together to create advantages and value for customers. 

Dells termination of the agreement follows Broadcoms decision to change 
licensing policies for VMware products, cutting perpetual licenses in favor 
of subscription-based models a move that proved to be unpopular among 
partners, distributors, and customers alike. 

Although Broadcoms changes have sent ripples through the virtualization 
landscape, VMware continues to be an incredibly competitive option. Its 
unclear whether some recent unsavory decisions have driven Dell to want to 
sever its ties with the company, or whether theres more at play. 

 TechRadar Pro asked Dell for more information about its decision, but the 
company did not immediately respond. More from TechRadar Pro Check out the 
best web hosting providers Broadcom kills off VMware Cloud Service Providers 
Weve rounded up a list of the best small business servers



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Link to news story:
https://www.techradar.com/pro/dell-is-terminating-its-distribution-deal-with-v
mware


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