Broadcom Software Pricing Benchmarks – Typical Discounts Explained

Broadcom Software Pricing Benchmarks

Introduction: Why Benchmarks Matter

Broadcom’s software pricing is notoriously opaque and heavily favors the vendor.

Many customers don’t know what a “fair” price is, and Broadcom takes advantage of this – if you negotiate without benchmarks, it’s easy to overpay.

Having pricing benchmarks changes the game: it gives you a realistic anchor for discussions and ensures you’re not paying more than similar customers. For a full guide, read Broadcom Pricing & Discount Models: Benchmarks, Multi-Year Deals, and Cost Increases.

It also protects you from common pitfalls, like assuming old vendor discounts will carry over.

Broadcom often resets pricing at renewal (for example, many VMware clients saw their discounts shrink after the acquisition), so you need data to push back and insist on fair treatment.

List Price vs. Discounted Pricing

Broadcom’s list prices are sky-high – essentially a starting figure that serious buyers are expected to negotiate down. However, Broadcom generally allows only modest movement off those inflated lists.

Unlike some of its peers, who might grant very large cuts for major deals, Broadcom’s philosophy is to protect its margins. If you accept their first quote or only a token reduction, you’re almost certainly overpaying.

Broadcom’s discounts do vary by deal size and product line, but clear patterns emerge. Small purchases get very slim discounts, while bigger, strategic deals can unlock better terms (within limits).

For context, small deals (under $1M) often see only single-digit discounts (~5–10% off list), mid-sized deals ($1M–$5M) typically get around 10–20% off, and large deals ($5M+) may reach 25–30% off in the best cases.

Even the largest deals rarely exceed 30% off the list price. Knowing this ceiling helps you spot a bad quote.

For example, if Broadcom only offers 10% off on a multi-million dollar deal, that’s the low end of normal – you have room to push for more (closer to 20%) by citing your volume and alternatives. In short, recognize Broadcom’s baseline and use it to argue for a better break.

VMware Pricing: Before vs. After Broadcom

VMware’s pricing approach changed drastically once Broadcom took the helm. Under VMware’s previous ownership, discounts of 20–40% off the list price were not unusual for enterprise deals.

VMware was relatively generous to win business, often offering steep cuts in enterprise agreements or special promotions. Customers grew accustomed to getting, say, 25% or more off VMware’s list price for large commitments.

Since Broadcom acquired VMware in 2023, those generous discounts have largely disappeared. Today, many VMware customers see quotes in the low teens off list (around 10–15%), whereas before they might have seen 30% off for a similar deal.

Broadcom also tends to reset VMware pricing at renewals or migrations to a subscription-based model. An initial deal might come with a concession (e.g., a 20% discount to get you on a new 3-year subscription), but when that term is up, the renewal quote might effectively wipe out that discount.

The bottom line: VMware’s pricing post-Broadcom is far less buyer-friendly than it used to be. You must adjust your negotiation strategy to expect smaller discounts upfront and proactively protect those discounts for the long term.

Read how multi-year can impact pricing – Broadcom Multi-Year Pricing Models – How Discounts and Step Pricing Work.

CA Mainframe Maintenance: Then vs. Now

Legacy CA Technologies (now part of Broadcom) had a very different pricing culture, especially for mainframe software. In the CA days, steep maintenance discounts of 50–70% off the list were common.

CA often slashed maintenance fees to keep long-time mainframe customers happy. Many large enterprises grew accustomed to paying only 30% (or even less) of the official list price for their mainframe tool support.

After Broadcom acquired CA, that era of 60% off maintenance is fading. Broadcom is much less generous now – mainframe contracts often only receive around 20–30% off the list price at best.

If you had a 60% discount under CA, expect Broadcom to push for a higher price (meaning a smaller discount) at renewal. In short, Broadcom’s priority is to raise these historically low maintenance fees and boost its margins.

This isn’t to say mainframe customers have zero leverage. A large mainframe shop can still negotiate for discounts, but expecting the old 60%+ off is no longer realistic.

Mainframe customers should prepare for more challenging negotiations and not assume that past discount levels will continue without a fight.

Key Factors That Influence Discounts

Several key factors will determine where your deal falls within Broadcom’s discount spectrum. Understanding these can help you strategize:

• Deal Size & Spend: Larger total spend usually translates to a bigger discount. A multi-million-dollar agreement might yield a discount of 25–30%, while a small six-figure purchase might only receive a 5% discount. Size is one of the strongest levers in Broadcom negotiations.
• Product Category (Strategic Value): Broadcom’s core or “must-have” products (like VMware’s core infrastructure software or CA mainframe tools) come with tighter discounts because they know you have few alternatives. In areas with more competition or substitute products (for example, some Symantec security software), you may be able to negotiate a bit more flexibility, especially if you mention competitor quotes.
• Competitive Pressure: If you have credible alternatives (or even the option of third-party support), use them. Broadcom is more likely to concede extra percentage points if it genuinely fears losing your business. Conversely, if they know you’re dependent on them and not considering other options, they have little incentive to budge beyond their standard terms.
• Timing & Commitment: Try to time your negotiation with Broadcom’s sales deadlines. End-of-quarter or year-end deals can sometimes secure an extra point or two of discount as reps strive to meet quotas. Similarly, a multi-year commitment might result in a slightly better upfront price, as it guarantees Broadcom longer-term revenue. Neither factor is a magic bullet – Broadcom is famously rigid – but aligning with their quarter-end and offering a 3-year term can provide a slight edge. Be cautious with multi-year deals: avoid built-in uplifts (automatic annual increases) that could erode your savings; always consider the total cost over the entire term.

By stacking these factors in your favor (e.g., bundling purchases to increase deal size, introducing competition, timing the deal strategically), you can push Broadcom toward the higher end of their discount ranges.

How to Obtain Benchmark Pricing Data

If benchmarks are critical, how do you obtain accurate pricing data for Broadcom deals? Consider these approaches:

• Peer Networking: Leverage your professional network and industry groups. Fellow CIOs and procurement managers often share ballpark figures informally. These peer insights give you a target range to aim for.
• Run Competitive RFPs: Whenever possible, run a competitive bidding process. Even if Broadcom is likely to win due to product fit, involving alternative vendors or third-party support providers yields useful data. The quotes from others give you a frame of reference and put pressure on Broadcom to improve its offer.
• Consultants & Advisors: Consider engaging software licensing consultants who track vendor pricing trends to ensure optimal pricing. These specialists often have up-to-date benchmark data on Broadcom/VMware deals across industries. They can quickly tell you if Broadcom’s quote is in line with the market or if others are paying significantly less. That insight will bolster your stance at the table.
• Internal Historical Deals: Don’t overlook your own records. What discounts did you get from VMware, CA, or Symantec in the past (especially pre-Broadcom)? Those historical deals set a baseline. If Broadcom’s new quote is dramatically higher (smaller discount) than what you used to pay, bring it up. It’s reasonable to say, “We had 25% off in our last contract – why is this quote only 10%?” Forcing that comparison can push them to justify (or adjust) the price in your favor.

By gathering benchmarks through these methods, you arm yourself with valuable insight. Instead of accepting Broadcom’s pricing as an unknown, you walk in knowing roughly what others are paying. That knowledge is power – it keeps your negotiation grounded in reality.

Broadcom Pricing Benchmark Cheat Sheet

To wrap up, here’s a quick reference of typical Broadcom discount ranges and scenarios:

Note: These figures are general benchmarks. Your specific outcome will depend on your leverage, the products in question, and your negotiation skills. If Broadcom’s quote to you is far outside these norms (e.g., only 5% off on a multi-million dollar deal, or a renewal at full list after you previously had a big discount), use that discrepancy as a discussion point. It could mean you’re leaving money on the table.

FAQs

Q: What’s a realistic discount on a $2 million Broadcom deal?
A: For a $2M deal, roughly 10–20% off list is realistic. A mid-teens percentage (around 15%) is common with solid negotiation. With strong competitive leverage, you could push toward 20%, but achieving a rate beyond that is unlikely on a deal of this size.

Q: Have VMware discounts shrunk since Broadcom took over?
A: Absolutely. Under VMware’s old management, large customers often received discounts of 25–40%. Since Broadcom took over, those generous discounts have largely disappeared – now many VMware clients see only a 10–15% discount. So yes, VMware pricing is far less generous post-acquisition, and you’ll have to fight for every point.

Q: Do mainframe software customers still get the huge discounts they did in the CA days?
A: Not like before. CA had a practice of offering very steep discounts (50% or more off) on mainframe maintenance to keep customers from leaving. Broadcom is pulling back on that. Today, a large mainframe customer might negotiate a discount of 20–30% if they have leverage, but the era of discounts of 60–70% off maintenance is ending. Broadcom is intent on raising those historically discounted maintenance fees, so expect tougher talks and more modest discounts than you may have had under CA.

5 Actionable Tips for Using Benchmarks in Negotiations

1. Do your homework (come with data): Before you meet Broadcom’s sales team, research what others are paying. Have a realistic discount target in mind based on benchmarks (e.g. “We should be aiming for ~18% off on this $3M deal”). This prevents Broadcom’s high starting price from framing the whole discussion.
2. Signal your market knowledge: Let Broadcom know (subtly) that you’re aware of typical pricing. You might mention, “We’ve spoken with industry peers” or “We have internal data on pricing benchmarks.” Without divulging specifics, this tells Broadcom that you can’t be easily convinced that a lowball offer is the best you can do.
3. Protect your discount in the contract: It’s not just about the first-year price — what about renewal? Negotiate upfront that any discount you win now will carry over into future renewals (or at least that renewals won’t revert to the list price). For example, include language in the contract stating that “renewal prices will reflect at least a 15% discount off then-current list.” If Broadcom’s reps promise to “take care of you next time,” politely insist on putting that promise in writing.
4. Anchor high (but realistic): Use your benchmark data to set the opening anchor in negotiations. Be the first to quote a number – for example, you might say “We’re looking for around 20% off list, given the scope of this deal” as your opening. Anchoring the conversation firmly around a benchmark-backed figure forces Broadcom to negotiate on your terms. Just be sure your ask is within reason; a wildly unrealistic demand can backfire.
5. Get every concession in writing: After tough negotiations, make sure the final agreement clearly documents all discounts and special terms. If you negotiated a multi-year cap on price increases or secured an additional 5% discount for bundling products, ensure the contract reflects this. Verbal assurances or email notes won’t help you later – only the signed contract counts. Lock in your benchmark-informed wins so Broadcom can’t backtrack on them later.

By following these tips, you’re using benchmarks not just as static numbers, but as active leverage throughout the negotiation. Broadcom’s pricing tactics count on customers feeling uncertain.

Your job is to replace that uncertainty with hard data and a firm strategy. Armed with the right benchmarks and a confident approach, you can push Broadcom beyond its default offers and secure a much better deal for your organization.

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