Edge HCI systems vendor Scale Computing saw its sales soar as the reality of Broadcom’s VMware business changes impacted VMware customer and channel loyalty.
The company said increased demand for both edge computing and alternative virtualization platforms drove its record growth. Scale said it doubled its new customers and partners compared to the same period last year.
“Following our acquisitions of Broadcom and VMware, our business has grown rapidly. We secured an unprecedented number of new business opportunities in the second quarter and remain on pace to achieve more than 50% year-over-year revenue growth in 2024,” said Jeff Reddy, CEO and co-founder of Scale Computing.
Jeff Reddy
Broadcom changed VMware from perpetual to subscription licensing, potentially doubling costs for customers, or worse. VMware products have been consolidated into two main bundles, VMware Cloud Foundation and VMware vSphere, increasing costs for some users of standalone products.
Broadcom said the changes are a “radical simplification across our portfolio, go-to-market and organizational structure to make it easier to do business with us.” “Offering fewer products that pack more value at lower prices at the high end and at the same or lower cost at the low end makes business sense for customers, partners and VMware. We’re putting all our R&D investments into fewer products, which is a double win for customers.”
But these changes have alienated VMware customers and partners. As a result, Scale has positioned itself as an alternative to VMware for both channel partners and customers, and that seems to be working.
Reddy asserted, “This quarter, we signed hundreds of new partners across North America, Latin America, EMEA and APAC. We are focused on providing our partners and end customers with true partnerships built on the most innovative and resilient IT solutions in the market.”
New and existing partners looking to switch their customers to Scale Computing can participate in the “VMware Rip & Replace” promotion to receive a 25% discount on Scale Computing software and services for every new customer deployment. VMware customers looking for replacements can transfer existing software licenses and swap out hardware through the “Seamless Switch: Trade-Up to Scale Computing” promotion.
