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Broadcom is leveling the playing field for its OEM partners with a “reboot” for Dell Technologies , Hewlett Packard Enterprise, Lenovo and others that will remove 20 years of Byzantine agreements and thousands of SKUs in favor of simple, predictable pricing, said Broadcom Vice President of OEM Ricky Cooper.
"It's unfair to any of them," Cooper told CRN in an interview about how VMware's past deals with OEMs were structured. "Because of the historical relationships we've had with companies like Dell and so on, you have a lot of different pricing. I can tell you, nobody has the same pricing. Everybody's different. We just need to hit the reset button and say, 'Okay, I understand where we were, but this is where we need to be.'"
Cooper, who joined Broadcom after its $69 billion acquisition of VMware in November, said Broadcom is throwing away thousands of product lines, special prices, offers, discounts and bargains that were accumulated over decades as VMware grew into one of the world's biggest technology brands.
"I think it's a great thing," said Cooper, who led VMware's global channel network and commercial organization before the VMware acquisition. "We've built an organization based on tribal knowledge where we have to understand the 6,000 product lines that we have and deal with [registration], quoting and everything else. Well, how easy would it be to just deal with a couple SKUs? That would be a real game changer. Simplicity of doing business. The costs associated with that would be very simple... The message really is that we had to say, 'This is crazy. Let's take a break. Let's get ready for the new year. When you get to the first quarter, it's going to be a different movement, but it's going to be a movement that gives you a lot more predictability and efficiency."
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