Broadcom Negotiation Preparation Checklist
Introduction: Broadcom’s software contracts (covering VMware, Symantec, CA Technologies, and more) are notoriously tough on customers.
After a string of acquisitions, Broadcom often takes a hard-line stance, “pay up or walk away,” with minimal discounts.
Negotiations are high-stakes – missteps or missed details can result in millions of dollars in overspending or compliance penalties. Read our overview for Planning a Broadcom Software Negotiation: Timeline, Preparation & Checklist.
To make matters worse, Broadcom tends to provide renewal quotes very late (sometimes only ~90 days before expiration), pressuring organizations to rush decisions. Given these challenges, having a structured preparation process is essential.
The following guide explains why a checklist approach is important and provides a comprehensive Broadcom negotiation prep checklist that you can use to cover all critical steps well before engaging with Broadcom’s team.
Read how to build your team, Building a Broadcom Negotiation Team & Playbook.
Why a Checklist Matters
Broadcom renewals are complex events with tight timelines and significant financial risk. Unlike a standard vendor renewal, a Broadcom deal can involve changed licensing models, steep price increases, and strict terms (like multi-year lock-ins and hefty late-renewal penalties).
Missing even one preparation step – for example, failing to audit your usage or overlooking an auto-renewal clause – can severely weaken your negotiating position.
A checklist ensures no critical task is forgotten. It helps your team stay organized and proactive, rather than reacting to Broadcom’s playbook at the last minute.
With Broadcom’s sales tactics designed to maximize their advantage (e.g., last-minute quotes, strict compliance enforcement), a thorough checklist empowers you to take control of the timeline and negotiate from a position of strength.
In short, a checklist is your safety net against Broadcom’s defaults – it forces discipline in an inherently difficult negotiation, so you don’t learn a costly lesson after it’s too late.
Core Preparation Steps
Before reaching out to Broadcom or responding to their renewal quote, your organization should complete several core preparation steps. These build the foundation for a successful negotiation:
1. Conduct an Internal License Audit:
Begin with a thorough inventory of all Broadcom-related software licenses your company owns – including VMware products, Symantec security software, CA mainframe tools, etc. For each, document what you’ve purchased versus what is actually deployed and in use.
This usage-vs-entitlements review will uncover “shelfware” (licenses you paid for but aren’t using) as well as any areas where you might be over-using (potential compliance gaps). Identifying shelfware early is crucial – those licenses can potentially be eliminated or renegotiated, resulting in significant savings.
Likewise, discovering any compliance shortfall now allows you to address it proactively (rather than Broadcom discovering it in an audit and using it against you). In short, know exactly what you have and what you need before Broadcom tells you what they think you need.
Read the Broadcom negotiation timeline, Broadcom Negotiation Timeline & Key Milestones.
2. Review Contract Dates and Terms:
Gather all contracts and support agreements related to Broadcom or its acquired companies. Check the expiration dates, renewal terms, and notice periods to ensure you are aware of the relevant details.
Many legacy CA or Symantec contracts include auto-renewal clauses or require written notice 60–90 days before expiration if you intend to cancel or reduce your maintenance. Mark all these critical dates on a calendar well in advance.
The goal is to avoid unpleasant surprises, such as an auto-renewal kicking in because a notice deadline was missed. Additionally, look for opportunities to align and co-terminate contracts. If you have multiple contracts ending at different times (for example, separate VMware and Symantec renewals), consider aligning them to the same renewal date.
A single, larger renewal event gives you more negotiating leverage (Broadcom pays more attention when a big bundle of business is on the line). It also simplifies planning and prevents Broadcom from picking off renewals one by one on its terms.
Overall, managing dates and terms early helps you avoid falling into Broadcom’s timing traps (like last-minute quotes or unwanted renewals).
3. Benchmark Pricing and Prepare Your Budget:
Broadcom’s initial renewal quotes are often significantly higher than expected – in some cases, organizations have seen a 2x, 5x, or even higher cost increase after Broadcom acquires VMware and others.
Research current market pricing and benchmark data to inform your decisions. If possible, consult with industry peers or analysts to gauge the discount levels or concessions others are receiving from Broadcom for similar deals. Use this data to set realistic discount targets for your negotiation.
At the same time, involve your finance team in projecting the total cost of ownership (TCO) over the coming years, using Broadcom’s pricing. Prepare a budget that accounts for a worst-case scenario (for instance, what if Broadcom’s quote comes in at double your current spend?).
By setting budget expectations internally (especially with your CFO), you ensure that senior management is prepared for a potential price shock.
This way, a high quote won’t automatically force you into quick concession – instead, you’ll have a mandate to push back and seek adjustments.
In summary, arm yourself with data (external benchmarks and internal cost projections) so Broadcom’s price anchor doesn’t go unchallenged.
4. Assemble a Stakeholder Team:
Successful negotiations require a united front. Identify all internal stakeholders who need to be involved early on – typically IT (for technical requirements and usage data), procurement/vendor management (to lead commercial terms), finance (for budgeting), and legal (for contract review).
Hold an internal kickoff to define each person’s role and to share information gathered so far (audit findings, contract deadlines, budget targets, etc.).
Ensure that everyone understands Broadcom’s likely approach, including the expectation of a significant price increase, a push toward subscriptions or multi-year terms, and limited flexibility on their standard policies.
With this understanding, the team should agree on your organization’s negotiation objectives – e.g., the maximum budget or price increase you can accept, which products or features are must-haves vs. nice-to-haves, any contract terms you need (such as flexibility to reduce licenses later), and what your absolute deal-breakers are.
It’s also wise to assign an executive sponsor to this effort (often a CIO or CFO). Broadcom’s reps take notice when C-level executives are engaged – it signals that your company is serious. It provides someone with authority to escalate to if the negotiations reach an impasse.
In short, build a solid internal team with clear roles and top-level support before you ever sit down with Broadcom.
5. Define Your Objectives and Walk-Away Plan:
With your team in agreement on priorities, clearly document your negotiation objectives and your walk-away plan.
Objectives should include both financial goals (like “achieve at least 20% discount off list” or “keep total cost within $X”) and key contractual terms (for example, the inclusion of a clause to allow a usage reduction/true-down in future years, or caps on annual price increases, or flexibility to drop certain products if needed).
Identify ahead of time which points are non-negotiable for you and where you have flexibility to compromise.
Equally important is having a walk-away alternative in case Broadcom’s offer is unacceptable. Ask yourselves: What will we do if Broadcom won’t meet our minimum requirements?
This could involve considering alternative vendors or solutions for certain Broadcom products. In reality, replacing Broadcom’s software (such as VMware or mainframe tools) can be difficult and time-consuming; however, knowing your options is powerful.
Perhaps you can continue using an older version for longer, migrate some workloads to a different platform, or engage third-party support providers for maintenance as a temporary solution.
Even initiating a migration plan for a portion of your environment (if feasible) gives you leverage – Broadcom will think twice if they sense you’re prepared to reduce reliance on them. Document a credible fallback scenario, even if it’s just a negotiating tactic.
The idea is to avoid entering talks feeling like “we have no choice but to sign whatever Broadcom offers.”
Instead, you want Broadcom to realize you do have alternatives, however imperfect, and you’re ready to walk away or delay if the deal isn’t fair. This mindset is a critical negotiation lever.
6. Double-Check Compliance and Risk Areas:
As a final preparatory step, review any compliance risks or audit exposures related to your use of Broadcom software. Broadcom is very strict about license compliance and has been known to perform surprise audits or use compliance issues as leverage.
Ensure that your earlier license audit uncovered any areas where you might be out of compliance (such as using more licenses or capacity than you paid for). Develop a plan to resolve these issues before renewal (for instance, true up the licenses or adjust usage downward) or, at the very least, be prepared to address them during negotiations.
By documenting your compliance status, you can approach Broadcom with confidence that there are no hidden violations on their side. You never want to be caught off guard by an audit threat during talks.
Showing that you’re audit-ready and knowledgeable can also deter Broadcom from attempting scare tactics about compliance.
Essentially, make sure there are no skeletons in your closet that Broadcom can use to pressure you – clean them out in advance.
Having completed these core steps —audit, contract review, benchmarking, team alignment, objective setting, fallback planning, and compliance checks —you will be in a strong position to enter the negotiation. Now it’s time to boil these down into a handy checklist.
The Broadcom Negotiation Checklist
Use the following checklist to verify your team has covered all essential preparation tasks before engaging in Broadcom contract negotiations:
✔ Inventory all Broadcom/VMware/Symantec licenses.
✔ Compare usage vs. entitlements; identify any shelfware.
✔ Confirm renewal dates and watch auto-renew traps.
✔ Collect benchmark pricing and industry data for reference.
✔ Align internal stakeholders and assign clear roles.
✔ Define negotiation objectives and walk-away terms.
✔ Document compliance risks and ensure audit readiness.
✔ Prepare fallback scenarios (third-party support, alternate solutions).
✔ Schedule a negotiation timeline and regular meeting cadence.
✔ Draft an escalation plan (internal approvals and vendor contacts).
(Print this checklist out or share it with your team to track progress on each item. Every box checked is one less surprise at the bargaining table.)
Common Mistakes to Avoid
Even with a checklist, organizations frequently encounter pitfalls with Broadcom.
Avoid these common mistakes:
- Starting the process too late: One of the costliest errors is waiting for Broadcom’s official quote or the 90-day renewal window to begin preparing. If you only start a few months out, you’ve handed Broadcom the timing advantage. Begin internal preparations at least 12 months before contract expiry. Early action is your best defense against Broadcom’s last-minute pressure tactics.
- Letting Broadcom control the timeline: Do not simply follow Broadcom’s lead on scheduling. Broadcom may delay providing information or rush the final signing to expedite the process. Take control of the timeline by setting your own internal deadlines (for gathering data, requesting quotes, completing negotiations) well ahead of the contract end. If Broadcom’s account team is unresponsive or slow, escalate the issue promptly to higher-level management. Never allow a situation where you’re days from expiration with no agreement – that’s when Broadcom has maximum leverage.
- Having no Plan B: Going into a negotiation without a fallback plan is a recipe for paying whatever Broadcom demands. If Broadcom’s reps sense that you absolutely must have their renewal at any cost, you lose all bargaining power. Always prepare an alternative, even if it’s not ideal – whether that means a potential competitor product, a plan to scale back usage, or a temporary third-party support option. A credible Plan B (or at least the appearance of one) forces Broadcom to consider making concessions. Without it, you’re negotiating with an unloaded gun.
By steering clear of these mistakes, you maintain leverage and avoid being cornered into a bad deal.
FAQs
Q: When should I start preparing for a Broadcom negotiation?
A: Start your preparation extremely early – ideally 12 months (or more) before your Broadcom contract expires. Broadcom is known for sending renewal quotes only about 60-90 days before expiration, which is far too late to address all the moving parts. Beginning a year ahead gives you time to complete an internal audit, explore alternatives, budget for any price hikes, and engage leadership. Some large enterprises even begin planning 18 months for complex renewals. Early preparation ensures you won’t be caught off guard by Broadcom’s timeline.
Q: What is the single most important step before engaging Broadcom?
A: If we must pick one, conducting an internal license and usage audit is the most critical step. Knowing exactly what you have, what you actually use, and what you need in the future underpins every other aspect of the negotiation. This knowledge prevents Broadcom from dictating your requirements or upselling you on shelfware. It also highlights any compliance issues that need to be addressed. In short, the audit gives you the data and confidence to challenge Broadcom’s quote. Without it, you’d be negotiating in the dark. (Of course, all the steps are important, but the audit is the foundation.)
Q: Does this checklist apply to VMware, Symantec, and CA deals?
A: Yes. Broadcom’s acquisition strategy means that VMware, Symantec (Enterprise Security), and CA Technologies customers are now all negotiating with Broadcom. The checklist is designed to cover all of these product lines. In fact, it’s crucial to include all your Broadcom-owned software in the prep work – from VMware’s virtualization software to security suites and mainframe tools – because Broadcom often takes a similar hard-nosed approach across the board. The principles (audit, stakeholder alignment, early prep, etc.) apply equally whether you’re renewing VMware licenses or Symantec support contracts. If anything, having a single checklist for all ensures you don’t overlook one of the acquired product sets when Broadcom comes to the table.
5 Practical Recommendations
To conclude, here are five key recommendations distilled from the above guidance:
- Start at least 12 months before contract expiry.
- Always audit before talking to Broadcom.
- Create a written checklist and assign owners to each task.
- Include compliance risk checks alongside financial prep.
- Escalate early if Broadcom resists fair terms.
By following this preparation checklist and advice, you will approach your Broadcom negotiation with confidence, backed by data and a strategy to achieve the best possible outcome for your organization.
Good luck – and remember that preparation and persistence are your best tools when facing Broadcom’s tactics.
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