Broadcom Negotiation Tactics
Introduction – Broadcom’s Hardline Approach
Broadcom has developed a reputation for aggressive, hard-line negotiations, especially after acquiring enterprise software vendors such as CA, Symantec, and VMware. Post-acquisition, routine license renewals have become high-stakes showdowns.
Many customers are shocked by steep price increases (often double, triple, or more) and an insistence on multi-year deals as the new standard. Broadcom’s stance is often “take it or leave it,” with little of the flexibility that legacy vendors once offered.
This profit-first, inflexible approach means CIOs and procurement teams must be more strategic than ever.
Instead of accepting Broadcom’s defaults, buyers need tailored tactics to secure better pricing, reasonable terms, and the leverage to protect their interests.
1. Negotiating Pricing with Broadcom
Anchor the Conversation on Your Terms:
Broadcom’s initial quotes tend to be extremely high – sometimes 3×–5× higher than previous contracts – as an anchoring tactic. Don’t let their list price set the tone.
Counter-anchor with data and a clear rationale.
For example, establish an internal target price based on your current spend, plus a modest uplift (or based on competitive alternatives), and then open negotiations from that point. Treat the first quote as a starting gambit, not the final word.
By coming prepared with your own expected price range, you force the discussion toward your anchor instead of Broadcom’s inflated starting point.
Use Benchmarks and Past Deals:
Arm yourself with benchmark pricing and any historical discounts you’ve received. If you know peer organizations or industry averages for similar Broadcom deals, bring those up: “Many enterprises our size pay around $X per unit – we’ll need to be in that range.”
Leverage your previous contracts as well. For instance, if under VMware you had a 30% discount or a cap on annual increases, cite that precedent: “Our last agreement limited increases to 5% – we expect similar treatment now.”
Concrete benchmarks make it harder for Broadcom to justify an outlier price. Even if Broadcom’s strategy is to reset pricing to a higher “new standard,” showing that you’re aware of market norms will pressure them to justify their quote or come down closer to it.
Frame the Total Contract Value:
Reorient the discussion to total value and partnership, rather than haggling line by line. Broadcom is more willing to negotiate when a larger deal is on the table. Bundle your needs into one conversation and emphasize the multi-year revenue you’re prepared to commit if the terms are right.
For example, say, “We’re looking at a 3-year agreement worth $$10 million across these products. To sign that, we need pricing at $Y million per year.” By highlighting the full contract value, you give Broadcom an incentive to sharpen their pencil on pricing – they won’t want to lose a big, multi-year deal over a pricing gap.
This approach shifts the mindset from a one-off sale to a longer-term partnership, which can unlock better pricing or concessions (as Broadcom gains the assurance of your extended business).
Insist on Value for Commitment: If you agree to Broadcom’s preference for a multi-year deal or a broader product bundle, make it a two-way street.
Clearly state that your commitment is contingent on price protections or discounts that make the deal worthwhile for you. For instance: “We’re open to a 3-year term, but in exchange we need a 20% discount off list and a lock on that rate for the duration.”
Tie any price moves to your commitment: longer-term or larger-scope projects must yield a more palatable per-unit price.
This anchoring tactic forces Broadcom to justify its high list rates and often results in the company moderating the pricing when it realizes a significant contract (and its quota) is on the line.
2. Discount Strategies That Work
Leverage Volume and Bundling:
In negotiations, size matters – bigger deals get more attention and better discounts. Take stock of all your Broadcom-owned software (e.g., VMware, security tools, mainframe software) and consider negotiating them together. By co-terming renewals and presenting a unified, larger spend, you increase your negotiating clout.
Broadcom is more willing to concede on price if you’re discussing a broad portfolio or enterprise-wide deal rather than piecemeal transactions. Use this to demand volume discounts: “If we roll Product A and B into one contract and extend for 3 years, we expect an overall 25% discount.”
Be careful only to bundle what you truly need – the goal is to increase leverage with legitimate volume, not to buy shelfware. However, if you have multiple needs, bundling them into a single negotiation can unlock discount tiers that wouldn’t be available with smaller, separate deals.
Time Your Negotiation to Their Sales Cycle:
Like many vendors, Broadcom faces intense pressure to meet revenue targets at the end of each quarter and year. This can be your opportunity. Plan your negotiation timeline so that your final decision-making coincides with Broadcom’s end-of-quarter (or fiscal year) if possible.
In those final weeks, sales representatives and managers become highly motivated to close deals, sometimes offering extra incentives or price breaks to secure the contract.
For example, you might observe Broadcom suddenly willing to “find” an additional 5-10% discount or throw in an add-on at no charge if it means booking the deal by the end of Q4.
Use this urgency to your advantage: make it clear that a deal will only close on your terms, but signal that you could sign by their deadline if those terms are met.
However, do not let their timeline rush you into a bad deal. If your internal process isn’t ready or terms aren’t acceptable, be prepared to let a quarter-end lapse – there will be another, and Broadcom will still need the sale.
The key is to align their desperation with your objectives: you get a better price, and they get the booking.
Bring in Competition (Real or Apparent):
Broadcom is more flexible on pricing when it believes there’s a competitive threat. Even if you’re heavily invested in Broadcom’s technology, research viable alternatives and, if feasible, solicit a competing quote or proposal.
This might be a different software provider or a cloud service that could reduce your reliance on Broadcom’s product. Present this tactfully during negotiations: “We are evaluating other solutions as well, and initial indications show we could cut costs by X% by going in that direction.”
You don’t need to overtly say “we will switch,” but make Broadcom compete for your business as if it were a new sale, not a captive renewal. In some cases, just demonstrating that you’ve done an RFP or pilot with another vendor can prompt Broadcom to counter with a better offer or terms.
They know that if you have a genuine alternative, they risk losing revenue, so they’re far more likely to bend on price. Even large enterprises that found it hard to replace VMware, for example, have won concessions by planning to offload a portion of workloads to a competitor or cloud provider.
The sight of a credible Plan B often softens Broadcom’s hardline stance to keep you in their fold.
Aim High and Negotiate Down:
Be ambitious in what you ask for – you won’t get what you don’t ask for. If Broadcom’s list pricing is astronomically high (as many have experienced), it’s reasonable to counter with an aggressive ask on discounts.
For instance, if they propose a price that’s triple your previous spend, don’t hesitate to ask that it be brought closer to parity (or only a minimal increase). You might say, “This quote is a 300% increase.
We need to be much closer to last year’s spend; our target is to keep any increase to low double-digits percentage-wise.” This frames the negotiation around reducing the gap. Broadcom’s team might push back, but you’ve set an ambitious goal that serves as a foundation for the discussion.
From there, engage in give-and-take: perhaps you secure a 20% discount by agreeing to a longer term, or you get them to include additional licenses at no extra cost.
The point is, start by aiming for a significant improvement over their offer. The final deal will likely land somewhere in between, but if you never push for more than a token discount, you’ll end up leaving money on the table.
Many enterprises have ultimately achieved far better pricing than the initial quote by methodically pushing back and justifying requests with data (usage stats, budget constraints, alternative costs).
Remember, Broadcom’s salespeople expect negotiations – their initial pricing often assumes you’ll counter. So counter strongly, and you can often whittle an outrageous quote down to a manageable deal.
3. Escalation & Walk-Away Tactics
Know When to Escalate:
If discussions with the account manager reach an impasse, it may be time to escalate within Broadcom’s ranks.
Front-line sales reps at Broadcom often have limited flexibility (constrained by corporate pricing policies), and they may simply reiterate “no” to your requests.
Don’t be afraid to go over their head when needed. Request a meeting with a regional sales director or a Broadcom executive responsible for your account.
Come to that meeting with a concise business case: outline your loyalty or spend history, the impasse on certain terms, and what you are asking for (“We need a price reduction or we will have to reduce scope/consider alternatives”).
Broadcom leadership hates to lose major customers or large deals; when they see a deal at risk or a customer executive engaged, they will often review what can be done. Similarly, involve your own executives in the process.
If a Broadcom VP or GM joins the call and is met by your CIO or CFO, it sends a message that your company is serious.
That executive-level dialogue can prompt concessions that a sales rep couldn’t authorize – whether it’s an extra discount, a custom contract term, or an exception approval.
Use escalation strategically: you don’t want to cry wolf on every small issue, but for major sticking points (like an unworkable price or a harsh contract clause), signaling that you’re ready to engage with the C-suite can break a stalemate.
Broadcom will realize you mean business and that stalling or stonewalling could result in losing your account altogether.
Define Your Walk-Away Point:
A critical part of any negotiation is knowing your BATNA (Best Alternative to a Negotiated Agreement) – essentially, what you’ll do if you can’t reach a deal.
Before talks even begin, define what “no deal” looks like for you. It could be sticking with your older version without support, shifting part of the workload to the cloud, delaying the project, or engaging a third-party support provider.
Also, decide the maximum price or worst terms you’re willing to accept. If Broadcom exceeds those limits and won’t relent, you must be prepared to walk away (or at least pause negotiations). This isn’t just posturing – it’s a pragmatic assessment.
Communicate parts of this to Broadcom as negotiations heat up: “If we can’t get to a workable arrangement, we have plans to scale back our usage significantly,” or “At that price point, we would have to consider alternative arrangements for next year.” Such statements should be calm and factual, not emotional threats.
The more credible your walk-away scenario, the more power it has. For example, one enterprise openly prepared a plan to migrate 20% of its VMware workloads to an alternate platform and shared that analysis with Broadcom.
Seeing real numbers and a real plan, Broadcom’s team quickly came back with a dramatically improved offer to dissuade them from partial migration.
The lesson: if Broadcom believes you will walk (even partially), they will likely moderate their demands to keep your business. On the other hand, if you continuously cave because you “have no choice,” they’ll stick to their hardline stance.
Use Delay Tactics to Your Advantage:
While no one wants to risk downtime, being willing to delay or say “not now” is a powerful lever. Broadcom’s policies (such as the 20% late renewal penalty) are designed to deter customers from missing their deadlines.
However, consider this: in some situations, letting a contract lapse briefly and purchasing anew can be more cost-effective than paying a substantial uplift or penalty. In one case, a customer was unable to obtain a waiver of the late renewal fee, so they allowed the contract to expire and then purchased a new subscription license a week later – avoiding the retroactive 20% charge.
This is a bold move and not ideal for everyone, but it shows Broadcom that you won’t be held hostage by arbitrary fees. Another “walk-away” variation is deferring expansion plans if the costs are too high.
Tell Broadcom, “At these prices, we will postpone adding those extra modules or delay that upgrade project.” This signals that their pricing is actively causing them to lose out on a greater share of your spend. It can spur them to come back with a discount on the additional licenses to get you back on track now rather than later (when you might consider competitors).
Essentially, be ready to slow down or halt the deal if it’s not meeting your critical needs. Broadcom’s sales team has quarterly targets and a pipeline to maintain; a stalled negotiation with a big customer is a nightmare for them.
Sometimes, the mere act of pausing and saying “we’ll revisit later – these terms aren’t workable” will bring Broadcom back to the table in a concessionary mood.
Risks of the Walk-Away Bluff:
It’s worth noting that threatening to walk away can backfire if done recklessly. Broadcom, sensing a bluff, might call it – and if you truly have no alternative, you could be left with an expired contract and scrambling. Thus, use walk-away tactics with preparation.
Manage the risks internally: ensure leadership is aware and aligned on the possibility of ending the negotiation without a deal (and what that means operationally). If you plan to invoke third-party support as an interim measure, ensure that the provider is lined up and has been reviewed by legal counsel in advance.
If you claim you’ll migrate off a product, be sure you have at least a pilot or migration assessment done. The goal is not to actually incur business disruption, but to be credible enough that Broadcom believes you will if pushed.
When done correctly, a well-structured walk-away threat is one of your strongest negotiation tools – it flips the dynamic, making Broadcom fear losing revenue more than you fear losing their product. Ensure that your organization can handle Plan B if it becomes necessary.
4. Handling Broadcom’s Tactics
Broadcom employs a variety of hardball tactics to maintain leverage. Being aware of these maneuvers allows you to counteract them effectively:
Forced Bundling of Unneeded Products:
A classic Broadcom move is bundling software into expensive suites, effectively making you pay for products or features you don’t intend to use.
For example, VMware’s new bundles might include components like NSX or management tools that your team doesn’t need, but Broadcom will say, “This is the only way we sell it now.” To handle this, push back firmly on bundle bloat.
Make it clear you won’t pay for “shelfware.” You can approach this in a few ways: (a) Negotiate a custom SKU or subset – ask if they can provide a lighter bundle with only the components you need (even if unofficially). (b) If they refuse to unbundle, then demand a price adjustment: “Alright, if we must take product X and Y that we won’t use, we need an extra discount to offset that.”
In other words, the bundle price should be comparable to buying just the needed parts. (c) Secure future flexibility – for instance, the right to swap out an unused component for another product later, or a clause that if you don’t deploy component Y within 12 months, you get credit back.
Broadcom may not readily agree to all these, but even raising the issue puts them on notice that you’re not an easy target for upselling. In past negotiations, simply highlighting “we have no use for this part of the bundle” has led Broadcom to either drop the price or quietly include something extra to justify it.
The bottom line: don’t silently accept a bundle that overstates value. Call it out and make them work for your agreement – either by trimming the fat or compensating for it.
Strict Renewal and Auto-Renew Clauses:
Broadcom’s contracts often come with rigid renewal terms – for instance, auto-renewal at list price (or with a built-in uplift) unless you cancel well in advance, and severe penalties if you miss the renewal deadline.
This is designed to lock you in and eliminate flexibility. To counter this, negotiate those terms explicitly. If an auto-renewal clause is present, request that it be removed or softened (e.g., the ability to opt out with 30-60 days’ notice before renewal without penalty). If Broadcom insists on annual price increases or an uplift at renewal, insist on a cap (say, “no more than 5% increase at renewal”) in the contract.
Also, address the penalty: many customers have successfully negotiated a grace period or one-time waiver of the 20% late fee. For example, you might encounter language stating that if you are in active, good-faith negotiations past the expiration, Broadcom will not apply the penalty for an additional 30 days.
It might not always be granted, but asking shows you are aware of this punitive term and expect relief. Internally, you should also prepare to manage these deadlines ruthlessly (set alerts months in advance, etc.) so you’re never at Broadcom’s mercy.
The key is to remove or dilute any “time bomb” clauses in the contract during negotiations. You want the freedom to renew on your schedule, not be forced into early commitments or automatic extensions on Broadcom’s terms.
If something isn’t clear, get it clarified in writing – for instance, how renewal pricing will be determined if not fixed. Don’t leave it to “we’ll discuss in three years,” because by then, you have no leverage.
“Expiring” Offers and Pressure Deadlines:
Broadcom sales reps commonly attempt to create a sense of urgency by saying things like “This discount is only valid until the end of the month” or “Prices are going up next quarter – sign now to lock in this deal.”
This technique is designed to prompt a rushed decision. The counter-strategy is twofold: call the bluff, but use the timing to your benefit when possible.
First, recognize that while Broadcom does implement real pricing changes at times, most of these deadlines are negotiable if you have the necessary influence. If a rep says the offer expires Friday, you can respond, “Our internal review process won’t allow signing by then. We’ll need you to keep that pricing into next month.”
Often, they will quietly keep it on the table (because they still want the sale). If they truly cannot for some reason, they might come back with a “new” offer later that’s effectively the same. Second, if the timing does align (e.g., you’re near quarter-end and ready to move), use that to extract maximum concessions.
Make it clear that you could finalize by their deadline, but only if the deal meets all your requirements. For example: “We see your quarter end is coming – we’re prepared to sign by then, but only if another 5% improves the discount and that onerous clause is removed.”
This flips the script, turning their urgent timeline into your leverage for a sweeter deal.
Do not, however, let the ticking clock force a yes on a bad deal. If Broadcom tries the “price will be higher later” threat, be prepared to test that – sometimes waiting can work in your favor, especially if the quarter closes and they missed their number (they might come back more eager).
The best practice is to manage the timeline on your own terms: start early so you’re not up against a wall, and treat any “exploding offer” skeptically. Most can be reignited with enough negotiation heat.
Other Hardline Maneuvers:
Broadcom might employ other tactics, such as delaying a formal quote to limit your negotiating window or stating “no changes allowed” as a blanket rule in contract language.
Anticipate these. If you sense a stall (e.g., they haven’t sent a quote and the renewal is a few weeks away), proactively escalate (as mentioned) and document your requests in writing, so there’s a record that you asked promptly.
Broadcom has been known to present final quotes very late, hoping clients have no choice but to sign – don’t let that happen. Continuously request, in writing, any pending info and cc higher-ups if needed.
As for contract “take-it-or-leave-it” claims: almost everything is negotiable if the deal is big enough or the customer is firm. We’ve seen clients obtain exceptions to termination clauses, audit rights, price caps, and other provisions, despite initial statements from sales representatives like “policy won’t allow it.” Push back by asking why and involving your legal team to propose alternative language.
Even if Broadcom won’t remove a tough term outright, they might agree to soften it (e.g., reducing an audit frequency, or adding words that give you more wiggle room).
The key to handling Broadcom’s hard tactics is showing that you are not intimidated and that you understand the playing field.
When they realize you see through the pressure techniques and have your own counter-strategies (such as time, escalation, or alternative plans), their leverage diminishes, and a more reasonable negotiation can take place.
5. Leveraging Third-Party Alternatives
Invoking third-party options, whether for support or replacement products, is an excellent way to gain leverage – but it should be done thoughtfully.
Third-Party Support as a Bargaining Chip: Broadcom’s high support costs and strict policies have driven some customers to consider independent support providers. Firms exist that offer support for Broadcom-acquired products (for example, for VMware or CA software) at a fraction of Broadcom’s maintenance fee.
Letting Broadcom know that you’re willing to use third-party support can instill confidence in the vendor. From Broadcom’s perspective, a customer choosing third-party support means they lose ongoing revenue (and it might encourage others to do the same).
Even if you ultimately prefer to stay with official support, mention this option during negotiations. You might say, “We have a quote from a third-party support provider that’s 50% less than Broadcom’s renewal. While we’d prefer to stay with official support, our management is considering that alternative unless we can substantially reduce costs.”
This explicitly tells Broadcom that their pricing is driving you away and gives them a chance to respond with a better offer.
In some cases, simply evaluating third-party support has led Broadcom to offer a temporary discount or one-time credit to entice the customer back into the fold. They would rather keep you (even at a lower price) than lose you entirely.
Viability and Risks of Third-Party Support:
Be clear internally on where third-party support makes sense. It’s most viable when your Broadcom software environment is stable and not rapidly evolving.
For instance, if you’re running a mature version of a product and don’t need immediate upgrades or new features, third-party support can cover technical help and bug fixes for far less cost. Many organizations use it as a stopgap – e.g., to buy a couple of years of breathing room while formulating a long-term plan.
However, there are trade-offs. With independent support, you typically forgo upgrades and official patches from Broadcom. If Broadcom releases a crucial security update, you may not receive it (the third-party may provide a workaround, but not always a complete fix).
Additionally, suppose you ever decide to return to Broadcom’s support or purchase new licenses. In that case, they may penalize you (often, vendors require you to pay backdated support fees or to buy the software anew if you’ve been out of maintenance).
This means going third-party could burn a bridge or incur costs later. That said, if Broadcom’s terms are unacceptable, third-party support can be a powerful Plan B – just walk into it with your eyes open about the risks.
Sometimes, even a year on third-party support, saving millions, is worth it to force Broadcom’s hand in the next negotiation.
Alternative Vendors and Solutions:
In addition to support, consider exploring alternative technologies. Are there other vendors or platforms that could replace or reduce your need for Broadcom’s product?
For example, when negotiating VMware terms, you might consider other virtualization platforms (such as Hyper-V, KVM, or Nutanix AHV) or increased use of cloud services that bundle virtualization differently. If it’s security software (Symantec), maybe evaluate competitors like McAfee, CrowdStrike, etc. If it’s mainframe software (CA), see if IBM or others have equivalent tools.
The point is to identify credible replacements – even partial – and use them in negotiation discussions. “We’re piloting an open-source alternative for this functionality,” or “Our strategy over the next 2 years is to shift some workloads to the cloud, which lessens our need for your product,” are statements that get Broadcom’s attention.
They underscore that you are not wholly dependent on Broadcom’s roadmap. Broadcom, in turn, may try to counter this by emphasizing its efforts to switch or claiming that its solution is more integrated.
But fundamentally, if they sense you have a foot out the door, they are likely to offer sweeteners to keep you. We’ve seen cases where Broadcom introduced more favorable licensing terms or gave a special discount for a subset of products when the customer demonstrated serious interest in a competitor for that subset.
When to Keep Alternatives in Your Back Pocket:
It’s not always necessary (or wise) to show all your cards. Sometimes, simply exploring alternatives and signaling that you have options is enough.
You might not explicitly name the competitor or the third-party, but phrases like “We have other avenues to explore if we can’t reach an agreement here” or “Our board is willing to invest in a transition if needed” can suffice.
Broadcom will read between the lines. The advantage of being a bit vague is that it leaves Broadcom guessing how far along you are, which can make them even more nervous.
On the other hand, if negotiations are truly deadlocked, being very specific can be helpful (“We have a quote from X competitor that would save us $Y – can you match this in value somehow?”). Use your judgment based on the tenor of the talks.
In all cases, having an alternative vetted (even at a high level) gives you inner confidence. You know that you have a fallback, which will come through in your tone and decisions.
That confidence alone often leads to a better outcome, because Broadcom’s side will sense that you won’t accept a bad deal out of sheer necessity.
6. Negotiation Do’s and Don’ts
Do: Prepare and unite your team early.
Begin planning the Broadcom negotiation for a 6-to 12-month renewal. Assemble a cross-functional team – IT, procurement, finance, and legal – and get everyone on the same page with goals and fallback plans.
Early preparation ensures that you fully understand your usage needs, budget limits, and any contract “gotchas” you want to address. It also prevents Broadcom from using time pressure against you.
Do: Audit and document everything.
Go into talks armed with data. Audit your current usage of Broadcom products (e.g., the number of licenses/cores, and which features are actually being used). Document your entitlements and any special terms from prior contracts. This fact base enables you to counter any inflated quotes (“We’re only using 80% of our licenses so that we won’t pay for 120%”). It helps you maintain the favorable terms you previously had.
Do: Control the negotiation process.
Set a clear timeline and agenda for the deal. Don’t wait passively for Broadcom’s sales team to dictate next steps. For instance, ask for the renewal quote well in advance, schedule regular checkpoint calls, and build in time for internal approvals.
By controlling the cadence, you avoid last-minute scrambles. Also, insist on everything in writing – if Broadcom makes a promise (a discount, a concession), get it emailed or in the draft contract. This holds them accountable and avoids “he said, she said” scenarios later.
Do: Involve executives and speak with one voice.
Ensure that Broadcom is aware that your executive leadership is engaged. Having a CIO or CFO drop in on a meeting or email Broadcom’s senior management can underscore how seriously you take the issue.
Internally, align your messaging: all team members should present a united front on key points (budget limits, requirements, etc.).
If Broadcom senses division or hesitation within your ranks, they may exploit it (for example, going around procurement to an anxious IT manager). Unity is strength – decide your strategy and stick to it collectively.
Do: Negotiate beyond price.
Many cost pitfalls lie in contract terms and conditions. Pay attention to factors such as the right to reduce licenses if usage drops, protections against audits, obligations in the event of an acquisition or divestiture, support response times, and other relevant considerations.
A great price isn’t truly great if the contract terms leave you exposed to fees or inflexibility later. Savvy negotiators secure both a good price and favorable terms that prevent nasty surprises. Broadcom is known for strict terms, so every concession you win there (even small ones, like a 60-day notice before an audit) can save headaches and money down the road.
Don’t: Reveal your budget or deadline too early.
Keep your cards close. If Broadcom’s reps ask, “What’s your budget for this?” avoid answering directly – they will use that info to peg their offer just under your ceiling. Similarly, don’t volunteer internal deadlines or pressures.
For example, if they know you have a hard budget approval by a certain date or that a critical project depends on renewal, you lose leverage. Remind yourself that you have options and time, even if you feel internal pressure.
Don’t: Wait for Broadcom to set the agenda.
One common mistake is letting Broadcom’s team drive the entire process, which can lead to delays and panic at the end. If, say, three months from renewal, you still don’t have a quote or draft contract, you should proactively follow up.
Ask for what you need, or escalate if they drag their feet. Passivity can result in being cornered with an eleventh-hour ultimatum. By being assertive early, you prevent Broadcom from controlling the narrative.
Don’t: Neglect legal review until the last minute.
Broadcom’s contracts often contain tough clauses (auto-renewals, strict confidentiality, non-refundable prepayments, etc.). Engage your legal team early in the negotiation process so they can flag unacceptable terms and suggest improvements.
If you wait until the final stages, you may discover deal-breakers too late or run out of time to fix language. Broadcom might also claim “no changes allowed” – a stance more easily challenged if legal has been involved from the start, not as an 11th-hour obstacle.
Don’t: Show desperation or say “We have no choice.”
Even if Broadcom’s product is vital to your operations, never show them that you’re emotionally or practically desperate. Phrases to avoid: “We absolutely cannot have any downtime” or “We don’t have an alternative, so we hope you can help us.” That signals Broadcom can hold firm.
Always project that you do have alternatives or mitigation plans (even if they’re unattractive, the vendor doesn’t need to know that). Your tone should be firm and business-like: you want a deal, but you’re prepared to do what’s necessary if an agreement can’t be reached.
Don’t: Agree to opaque or one-sided terms.
If Broadcom says, “Just trust us, this is standard,” that’s a red flag. Insist on clarity. For example, don’t accept a clause that says pricing for renewal will be “at the current rates” – nail down how much it can increase or set a fixed price for an extended term.
Don’t accept obligations that are entirely on you (like “customer must certify compliance annually at Broadcom’s discretion”) without some reciprocity or limit on frequency.
In negotiation, everything is negotiable to some extent.
Customers often err by thinking, “It’s a big company, I guess we have to swallow these terms.” You don’t. Challenge what doesn’t work for you.
By following these do’s and don’ts, you’ll approach Broadcom negotiations with a balanced strategy: firm and data-driven on the one hand, and avoidant of common pitfalls on the other.
FAQs
What is a typical Broadcom discount to aim for?
It depends on your deal size and situation, but generally, aim high. Under VMware’s old regime, discounts of 30–50% were common for enterprise agreements. Broadcom is stricter, yet many enterprises still secure 15–30% off list pricing through hard negotiation, especially on large multi-product deals. As a baseline, try to maintain at least the discount you had previously. If Broadcom quotes an enormous increase (hundreds of percent), your goal may be to negotiate that down to a much smaller increase (for example, turn a 5× jump into maybe a 1.5× or 2×). In other words, focus on minimizing the uplift. A “typical” discount under Broadcom might end up around 10–20% for mid-sized customers and higher for big ones, but don’t let them set the expectation. Come in with a target – the more leverage you muster (volume, multi-year, competitive pressure), the closer you can get to the kinds of healthy discounts that used to be standard.
How do I get Broadcom to move on price?
Broadcom will budge on price only when they believe they must – so you need to create that necessity. Tactics to encourage movement include: making the deal bigger (so it’s worth their while to give a concession), showing them competition (so they fear losing you), and escalating the discussion (so higher-ups with more authority get involved). Also, use timing – engage near their quarter-end when they’re hungry to close sales. It’s crucial to communicate a firm stance: for example, convey that you have a strict budget limit or that you’ll delay/cut scope if the price isn’t acceptable. If Broadcom understands that “no deal” is a real possibility, they are more likely to relent and negotiate. On a practical level, don’t settle for the sales rep’s first refusal. Often, initial pushback (“we can’t do that”) is just a test. Counter with, “We need more – what can you do?” and back it up with reasons. Be persistent and back your requests with rationale (usage data, value differences, alternative costs). When Broadcom sees you won’t just roll over, they will look for ways to meet somewhere in the middle. In short, leverage every pressure point you have – size, alternatives, timing, executive focus – to make staying stubborn more painful for Broadcom than giving you a discount.
Is threatening to switch vendors effective with Broadcom?
A credible switching threat can be effective, yes. Broadcom’s strategy banks on customers feeling stuck; if you demonstrate that you’re not, it undercuts their power. Many organizations have found that even hinting at a switch (or actually migrating a portion of their workload) prompted Broadcom to substantially improve its offer. However, the keyword is credible. A vague or obviously empty threat (“We might just replace everything!” with no evidence) won’t carry weight – Broadcom has heard it all before. However, if you can cite a pilot project, a meeting with another vendor, or a board-level directive to evaluate alternatives, it demonstrates that you mean business. It’s also about tone: frame it as a business decision, not an emotional reaction. For example, “Our leadership is prepared to invest in other platforms if we can’t achieve a sustainable cost here.” This shows it’s not just a bluff but a considered strategy. Broadcom will weigh the risk of calling your bluff – if they think you’re serious, they usually prefer to bend rather than potentially lose revenue. Keep in mind, actually switching core systems can be complex and costly, so don’t use this tactic frivolously. Ideally, do some groundwork on the alternative so that if the need arises, you can act on it.
Related articles
- Securing Broadcom Discounts & Concessions
- Multi-Product Negotiation Strategy with Broadcom: Bundling VMware, Symantec & CA
- Countering Broadcom’s “Take-It-Or-Leave-It” Stance
- Broadcom Software Pricing Negotiation Guide
- Common Mistakes in Broadcom Negotiations (What to Avoid)
5 Tactical Recommendations
To wrap up, here are five actionable tactics to strengthen your negotiating position with Broadcom:
- Always Benchmark Broadcom’s Offers: Do your homework on pricing. Know what others are paying or what the fair market value is. Use past contracts and industry benchmarks to set your expectations, and challenge any quote that far exceeds those levels. Never enter a Broadcom negotiation without hard numbers to support your requests.
- Leverage Quarter-End Timing: Plan your negotiation timeline to align with Broadcom’s fiscal calendar. Vendors often become more flexible as the quarter or year-end approaches. If you can align deal closure with Broadcom’s end-of-quarter, do so – but on your terms. The pressure on their side to close can translate into a better price or concessions for you.
- Escalate Early if Necessary: Don’t hesitate to involve higher-level executives – both in your company and at Broadcom – when you hit resistance. A VP-to-VP conversation can achieve what account managers cannot. By escalating purposefully (not as a tantrum, but with a solid case), you show Broadcom you’re serious and won’t settle for boilerplate responses.
- Have a Credible Walk-Away Plan: Prepare an alternative course of action and be ready to use it. Whether it’s engaging a third-party support firm, reallocating budget to other projects for a year, or migrating a portion to a competitor, have a Plan B. Make sure Broadcom is aware (subtly or directly) that you can and will walk if pushed beyond your limit. A customer with an exit strategy is one Broadcom must treat more carefully.
- Never Accept Bundling Without Value: If Broadcom bundles products or adds services you don’t need, don’t just acquiesce. Demand value substitution – either remove the unnecessary components, significantly discount them, or replace them with something beneficial to you. Every element of your deal should have clear value. Refuse to pay for filler. This stance forces Broadcom to justify each line item, preventing “hidden” price inflation through unwanted extras.
By following these tactics, you’ll be well-equipped to push back against Broadcom’s hardline approach and secure a more favorable outcome for your organization.
Negotiating with Broadcom may be challenging, but with proper preparation, effective leverage, and a well-defined strategy, you can turn a daunting renewal into a successful deal. Good luck!
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