Leveraging Alternatives in Broadcom Renewals – Third-Party Support and Competitive Options

Leveraging Alternatives in Broadcom Renewals

Introduction – Why Alternatives Matter at Renewal

Broadcom’s renewal quotes often assume you’re locked in with no real alternatives.

The vendor tends to present high renewal pricing on the premise that customers won’t switch or seriously consider third-party support. This default stance puts buyers at a disadvantage, as Broadcom counts on inertia and the fear of change. To rebalance the power, you need to introduce credible alternatives into the conversation.

Presenting alternative options during renewal negotiations forces Broadcom to compete for your business rather than simply dictating terms. Read our strategic guide, Renewing Broadcom Contracts: Strategies to Secure Better Terms & Manage Uplifts.

Whether it’s exploring third-party support for VMware products or considering competing solutions for Broadcom’s CA and Symantec product lines, having options gives you leverage.

At renewal time, when Broadcom is pushing for a signed deal, even mentioning an alternative signals that you won’t automatically accept a steep quote. The result is a stronger negotiating position and often better pricing or terms.

Buyers have good reasons to pursue these alternatives.

The cost pressure is real – independent support providers can reduce maintenance fees by 30–50%, and migrating some workloads to modern platforms can eliminate expensive legacy licenses.

You also gain flexibility: instead of blanket renewals, you decide which products to keep under Broadcom and which to support or replace elsewhere. This approach forces risk-sharing with Broadcom, meaning they must offer fair terms to retain your business.

The key is credibility – these benefits only materialize if your alternative plans are genuine and actionable.

Here’s a quick overview of key alternative strategies to consider at renewal:

By leveraging one or more of these strategies, you demonstrate that you have choices. In the sections below, we delve deeper into each alternative, its use cases, and how to utilize them as leverage in Broadcom renewal negotiations.

Alternative 1: Third-Party Support for VMware

One powerful option is shifting support for VMware products to a third-party provider. Broadcom (now owner of VMware) will strongly encourage you to stay on official support, often suggesting that only they can properly support VMware environments.

In reality, third-party support firms have emerged that specialize in VMware and other Broadcom-acquired software. These independent providers can maintain your existing VMware environment post-renewal at a significantly lower cost.

Many organizations find that a third-party support contract comes in at a fraction of Broadcom’s renewal quote – often cutting annual support fees nearly in half.

The benefits are clear: you slash support costs and buy breathing room to plan any future migration or upgrades on your own schedule.

Instead of paying Broadcom’s premium, you redirect those savings into other priorities or simply reduce IT spend. Third-party support is especially attractive if your VMware setup is stable and you don’t urgently need the latest software features.

The independent provider will typically offer assistance with troubleshooting, patches, and maintenance for the version you are currently running.

However, you must consider the limitations. No official upgrades are included when you leave Broadcom’s support – you’ll be “frozen” on your current software versions. Third-party support is best for mature environments that can run without immediate updates.

If you anticipate needing a major VMware version upgrade in the next year, this strategy might only delay the inevitable.

Additionally, you should vet the third party’s credentials: ensure they have a strong track record and that using them doesn’t violate any license agreements.

Broadcom might also attempt to sow doubt, claiming that external support can’t handle critical issues; therefore, be prepared with references or case studies that demonstrate successful third-party support outcomes.

Using third-party support as leverage in negotiations can be very effective. When Broadcom knows you have a quote from an independent support vendor on the table, it challenges their assumption that “you have nowhere else to go.” We’ve seen clients present a third-party support quote that was 40%–50% of Broadcom’s price – a compelling difference.

Broadcom will either have to sharpen its pencil on the renewal price or risk the customer actually switching to the cheaper support.

Even if you ultimately prefer to remain with Broadcom for support, just the act of seriously evaluating third-party options puts pressure on Broadcom to justify its cost.

The key is to make this alternative credible by doing your homework: obtain a formal proposal from a reputable third-party support provider and clearly understand what they will and won’t cover.

Should you do a multi-year renewal? – Broadcom Multi-Year vs Annual Renewals – Which Strategy Protects You Best?.

Alternative 2: Competing Products & Migrations

Another category of alternatives is migrating away from Broadcom products entirely in favor of competing solutions or modern platforms.

For legacy product lines, such as CA mainframe software or Symantec security suites, now under Broadcom’s umbrella, consider whether newer or rival products could fulfill the same needs.

For example, instead of paying Broadcom for a Symantec security product renewal, you might evaluate other cybersecurity vendors offering equivalent or better capabilities.

Similarly, organizations tied to mainframe products might look at rehosting applications on cloud or distributed systems, or shifting to managed services that reduce reliance on Broadcom licenses.

Pursuing a migration can be a powerful negotiation chip. It shows Broadcom that you’re willing to solve the problem at its root by moving off their software if they don’t offer reasonable terms.

Even migrating a portion of your workloads sends a message. For instance, you might plan to migrate a portion of your mainframe batch jobs to a cloud platform or replace a module of CA software with an open-source alternative.

Every workload you migrate is one less thing for which Broadcom can charge you. Over time, a well-executed migration strategy can significantly reduce Broadcom’s footprint in your organization, providing the ultimate leverage.

That being said, this approach comes with its own set of challenges and risks. Migration costs can be significant – you’ll need to invest in new software or services, possibly retrain staff, and manage the technical effort of data or system migration.

These projects can take months or years, which means they might not offer immediate relief for an upcoming renewal due next quarter. If you brandish a migration plan as a threat, Broadcom may question its feasibility or timing.

You must therefore be realistic and specific, focusing on areas where migration is actually plausible (with budget and executive backing in place).

A hollow threat, such as “we might eventually move everything to the cloud,” won’t worry Broadcom unless you can back it up with a concrete plan or a pilot project underway.

Use competing products and migrations as a long-term leverage play. In negotiation discussions, reference the fact that you are actively exploring modern alternatives.

For example, you might say, “We are beginning a pilot to move our identity management off Broadcom’s platform to a cloud-based solution.” This signals that you’re not afraid to reduce dependency.

Broadcom, facing that knowledge, may become more willing to offer a shorter renewal or a better price to bridge the gap, hoping to buy time to win you back.

The key is not to threaten migration out of anger, but to present it as a well-considered business decision. If Broadcom’s value proposition falters, you have a plan to move forward elsewhere.

Alternative 3: Hybrid Approach

A hybrid approach allows you to partially renew with Broadcom and partially leverage third-party support or alternative solutions. In practice, this means you might maintain Broadcom’s official support for your most critical systems, but shift lesser workloads or older products to a more cost-effective support model.

For example, you may renew your core VMware infrastructure with Broadcom (to ensure access to upgrades for future plans), but place several peripheral VMware hosts or non-production environments on third-party support. Or you maintain Broadcom support for a mission-critical mainframe tool, but migrate a secondary tool to an open-source alternative.

This strategy creates balanced leverage. Broadcom sees that they still have some of your business, but they’ve also lost some, which signals that the account is contestable and you’re not complacent.

In negotiations, this can translate to Broadcom working harder to protect what they still have with you. They’ll realize that if they push too hard on price or terms, you might expand the third-party support slice or move more workloads off their platform.

Essentially, a hybrid approach puts Broadcom in a partial loss scenario – they’ve already lost a piece of the pie, and they won’t want to lose more.

For you, as the buyer, the hybrid model mitigates risk. You’re not doing a full rip-and-replace of Broadcom’s technology (which could be risky and disruptive), but you are saving money on the portions you carved out.

You also gain real-world experience with alternatives on a small scale, which builds your confidence (and credibility) should you choose to broaden those alternatives later.

This approach is often palatable to internal stakeholders who are nervous about an all-in switch; it’s easier to approve “let’s try third-party support on this one segment” than to approve a wholesale migration of everything at once.

When negotiating, leverage the hybrid approach by mentioning that you have already taken action to optimize certain areas. For instance: “We’ve moved our development and test systems to third-party support to control costs, so only production remains under Broadcom support.”

This lets Broadcom know the status quo is already changing. It can prompt concessions, such as discounted renewal rates for the remaining licenses or more flexible terms, as Broadcom aims to preserve what’s left of the account.

Just be sure to manage the complexity on your end – keeping track of multiple support agreements or license sources requires diligence, so nothing falls through the cracks.

How to Communicate Alternatives to Broadcom

Having alternatives in your back pocket is one thing; presenting them effectively to Broadcom is another. The way you communicate these options can determine how seriously Broadcom takes your leverage.

Here are tactics for discussing alternatives during renewal negotiations:

• Be factual and business-focused. Frame your stance as a rational cost and value consideration, not an emotional threat. For example: “Our analysis shows third-party support for our VMware estate could save 40%–50%. We are evaluating that option, so we need Broadcom’s best offer to justify staying on official support.” This kind of statement positions your decision as driven by business sense, inviting Broadcom to come back with a competitive proposal rather than putting them on the defensive.
• Use concrete data or proof. If you have an RFP response or quote from a third-party provider or a competing product, please discreetly notify Broadcom. You might say, “We have a quote from an independent support firm at $X, which is significantly lower than Broadcom’s renewal. How can Broadcom help us close that gap?” Without revealing confidential details, sharing the existence of a real quote shows that your alternative isn’t just hypothetical.
• Present alternatives as options, not ultimatums. Broadcom mustn’t feel you’ve already made up your mind to leave (unless you truly have). Emphasize that you prefer to find a solution with Broadcom, but that you have options. For instance: “We’re prepared to renew, but only if the terms align with what we’re seeing from other providers.” This keeps the door open for Broadcom to come back with a better offer, rather than shutting down the conversation.
• Provide a timeline for a decision. Let Broadcom know that you have a decision deadline and will not be stringing this out indefinitely. For example: “Our goal is to finalize our support plans by the end of the quarter. We’d like to stay with Broadcom, but we will move to the alternative if we can’t reach an agreement by then.” A clear timeline adds pressure on Broadcom to act and not stall until you capitulate.
• Maintain internal alignment and credibility. Ensure that all your internal stakeholders (IT leadership, procurement, finance, etc.) are aligned on the alternative strategy. Broadcom’s representatives may attempt to bypass your negotiator and contact executives or account managers to assess the validity of the threat. If everyone internally knows the plan and supports it, Broadcom will get a consistent message. Nothing kills your credibility faster than mixed signals from your team.

Sample wording to use with Broadcom: It can help to have plain-language statements prepared that convey your position.

Here are a few examples you might tailor to your situation:

• “We are evaluating competitive support providers for our VMware environment and will only renew with Broadcom at terms that align with market rates.” – (Credible leverage: tells Broadcom you have a viable outside option and sets expectation of a better price.)
• “Our renewal is contingent upon Broadcom matching some key commercial terms we’ve been offered elsewhere for similar products.” – (Conditional renewal: makes it clear Broadcom must at least meet the competitive benchmark on important terms, whether price, caps, or flexibility.)
• “We need the freedom to transition certain workloads to alternative solutions over the next year without penalty. That flexibility will be a part of any renewal agreement.” – (Migration option: signals that you insist on contractual terms allowing partial moves, ensuring Broadcom can’t lock all your workloads in.)

Using professional, matter-of-fact language like the above keeps the discussion constructive. You’re not threatening to burn bridges; you’re demonstrating due diligence and a willingness to do what’s best for the business.

Broadcom is more likely to respond favorably when they sense that your leadership is serious and informed, rather than if they perceive a bluff or an emotional reaction.

Risks of Playing the Alternative Card

Invoking alternatives in a renewal negotiation is a proven tactic, but it comes with risks. Buyers should be aware of potential downsides and have plans to mitigate them:

• Broadcom may call your bluff. If your alternative isn’t fully credible, Broadcom might refuse to budge on price and effectively say, “go ahead and switch.” For example, if you threaten to migrate off a product but haven’t actually budgeted or scheduled that migration, Broadcom will sense the weakness. Should they stand firm, you could be caught scrambling – either paying their price or rushing into a poorly planned switch. Mitigation: Don’t bluff. Only present alternatives you are genuinely ready to execute (even if you’d prefer not to).
• No future upgrades or support for new features will be provided. If you leave Broadcom (especially for third-party support on software like VMware), you typically lose access to software updates, new releases, and official engineering support. Your environment could become outdated over time. Mitigation: Plan how long you can operate on the current versions. If you anticipate needing new features in a year or two, consider third-party support as a short-term solution and develop a roadmap for eventual upgrades or replacements.
• Migration challenges and costs. Switching to a new platform or product involves upfront costs – both financial and operational. These can include new licenses or cloud fees, consulting services, staff training, and potential downtime during cutover. If these costs outweigh the savings from not renewing, the alternative may not truly pay off. Mitigation: Do a thorough cost-benefit analysis for any migration. Use pilot projects to uncover hidden complexities before using the migration as a bargaining chip.
• Broadcom retaliation or pressure tactics. Vendors like Broadcom might respond aggressively if they sense they’re losing business. This could include stricter software compliance audits to ensure you’re not using any unsupported software beyond your entitlements, or reduced goodwill for support on products you do keep. In extreme cases, Broadcom might enforce contract fine print tightly (e.g., eliminating any grace periods). Mitigation: Stay compliant and document everything. If you choose third-party support, ensure that you’re not inadvertently violating the license terms. Also, keep the relationship professional – you can be firm in negotiation without antagonizing Broadcom unnecessarily.
• Internal resistance or uncertainty. Sometimes the biggest risk is internal. Your own stakeholders or technical teams might fear the change or doubt the alternative, which can lead to a half-hearted execution of the plan. If leadership wavers, Broadcom will sense it, and your negotiating position will weaken. Mitigation: Build internal consensus early. Educate your team on the importance of exploring alternatives. Secure executive sign-off on the potential Plan B so that everyone understands it’s a serious option, not just a negotiation tactic.

By anticipating these risks, you can address them in your negotiation strategy.

The goal is to use alternatives as a smart pressure tactic without stumbling into an outcome you didn’t truly want or weren’t prepared for.

Best Practices for Using Alternatives

To maximize the impact of alternatives on your Broadcom renewal negotiation, keep in mind these best practices:

• Do your homework and have a Plan B ready. This cannot be overstated: only use an alternative as leverage if you’re prepared to follow through. Before negotiations, gather at least one credible third-party support quote or outline a migration plan (with cost and timeline estimates). Having this in your back pocket transforms your posture from hoping Broadcom gives a discount to knowing you have an out if they don’t. It’s your insurance policy.
• Align internally on the alternative strategy. Make sure that key decision-makers (CIO, CFO, procurement head, etc.) are on board with the alternative. If you might actually take a third-party support deal or green-light a migration, those leaders must be aware and agreeable. Broadcom will often check back-channel communications or gauge executive commitment during the deal – you want your leadership to confidently support the stance that “we have other options and we will use them if necessary.”
• Leverage alternatives for more than just price. While cost savings is the main driver, don’t overlook contractual terms and flexibility. The mere fact that you could walk away gives you more say in the contract language. Use that leverage to negotiate beneficial terms, such as caps on annual price increases, the right to reduce licenses (true-down) if your needs shrink, flexible payment terms, or even an exit clause that allows you to opt out of the contract in a year or two if needed. Suppose internal politics or risk aversion prevent an immediate switch. In that case, you can still push Broadcom for these non-price concessions by pointing out that they’re what’s needed to keep you from considering other options down the line.
• Stay professional and firm. Negotiating with alternatives is a delicate dance. You want to convey seriousness without coming across as antagonistic. Always communicate with Broadcom reps in a respectful, business-like manner, focusing on business rationale (“We need to manage costs and vendor risk, hence our exploration of alternatives”). Avoid personal attacks or threats you can’t back up. By maintaining a professional tone, you keep the conversation productive and increase the chance that Broadcom will respond with a reasonable compromise.
• Have a fallback plan if Broadcom doesn’t budge. Despite your best efforts, there’s a chance Broadcom holds the line and offers minimal concessions. This is where your pre-prepared Plan B becomes vital. Decide in advance what you’ll do if the discount or terms you want aren’t met. For example, will you actually sign the third-party support contract for a subset of products? Will you execute a partial migration this year? Having a clear fallback action means you won’t be caught off guard. In the worst case, you implement your alternative and still achieve cost savings (albeit with the trade-offs discussed). In the best case, just knowing you can fall back gives you the confidence to negotiate harder.

Following these best practices ensures that using alternatives in your negotiation isn’t just a bluff, but a strategic move backed by preparation. It puts you in control of the renewal conversation and forces Broadcom to respond in kind.

Renewal Alternatives Checklist

Before heading into your Broadcom renewal negotiations, run through this checklist to make sure your alternative leverage is ready and credible:

• ✔️ Obtain at least one written quote or proposal from a third-party support provider or competitive vendor. Have a document that shows the scope and cost of an alternative solution. This will be your evidence when discussing options with Broadcom.
• ✔️ Identify which products or workloads you could realistically switch to an alternative. Pinpoint the specific areas (e.g., “VMware vSphere support”, “Dev/test mainframe workload X”, “Symantec endpoint protection”) that are candidates for third-party support or migration. Clarity here strengthens your case.
• ✔️ Calculate the potential savings or benefits. Know how much money you would save by going with the alternative. Also, understand any qualitative benefits (for instance, “moving to the cloud could improve agility”). Use these figures to justify your stance both internally and in talks with Broadcom.
• ✔️ Ensure internal buy-in and sign-off. Confirm that your management approves of exploring or even executing the alternative. It should not come as a surprise to any executive if you say to Broadcom, “We have other options.” Everyone should be on the same page internally regarding the willingness to pursue those options.
• ✔️ Decide on your ask from Broadcom. Be specific about what you want from the renewal negotiation. Is it simply a lower price? Or do you also need contractual flexibility (like the ability to drop certain products mid-term or a cap on future increases)? Having a clear list of demands helps you use the alternative as leverage to achieve them. For example, “If Broadcom can reduce the support uplift to 5% and include a 3-year price lock, we will renew. Otherwise, we will transition X product to a third-party.”
• ✔️ Prepare your communication strategy. Rehearse how you will introduce your alternatives during the negotiation. Plan the wording, anticipate Broadcom’s counter-arguments (“Third-party support won’t have the latest patches,” “Migration will be painful,” etc.), and be ready to respond with facts. This could include referencing success stories of other companies using third-party support or the steps you’ve already taken to ensure continuity if you switch.
• ✔️ Know your walk-away scenario. In the end, a checklist item that many neglect: define the point at which you will walk away from Broadcom’s offer. For instance, “If Broadcom’s final offer is above $Y, or if they won’t agree to our key terms, we will not renew.” Determining this threshold in advance prevents last-minute indecision. It also empowers you to use the alternative confidently because you know exactly when it’s the better choice.

By checking off these items, you ensure that your invocation of alternatives is not just a bluff but a well-supported negotiating position. This preparation can make the difference between Broadcom offering a token discount versus truly accommodating your business.

FAQs

Q: Can VMware be supported by third-party providers instead of Broadcom’s official support?
A: Yes. There are reputable third-party support providers that specialize in VMware (and other Broadcom-acquired products). They can provide technical support, bug fixes, and guidance for your existing VMware environment, often at significantly lower cost than Broadcom’s support. However, they won’t provide you with new VMware version upgrades – you’ll be maintaining your current software versions. It’s a trade-off between cost savings and access to the latest features. Many companies use third-party support at least temporarily to save money and gain time to plan upgrades or cloud migrations.

Q: What alternatives exist for Broadcom’s mainframe, CA, or Symantec products?
A: Alternatives will vary by product, but generally, you can look at migrating to modern platforms or switching to competitor software. For mainframe and CA products, some organizations re-host mainframe workloads on distributed systems or purchase modern software that fulfills similar functions (for example, moving identity and access management from a CA solution to a cloud IAM service). For security products like those from Symantec, there are many other cybersecurity vendors in the market that could replace them. Another option is outsourcing – for instance, using a managed service provider to handle a function, which offloads the need for you to maintain certain Broadcom-licensed tools. The best approach is to evaluate the specific product’s role and see if a cloud service, open-source tool, or competitor product can do the job. Importantly, get rough cost and effort estimates for these moves to ensure they’re viable alternatives to renewal.

Q: What if Broadcom calls my bluff on switching to an alternative?
A: This is exactly why any alternative you present should not be a bluff. If Broadcom essentially says, “Okay, go ahead and switch,” you need to be prepared to actually do it (at least for the portion you threatened to do). If you’re not ready, you lose negotiation credibility and could end up stuck with the high renewal cost or scrambling for a last-minute solution. However, if you are prepared, calling your bluff becomes a miscalculation on Broadcom’s part – you can calmly proceed with your third-party support or migration plan, and Broadcom loses that revenue. In practice, Broadcom calling your bluff might look like them refusing to discount or improve terms, confident that you won’t actually leave. The best countermeasure is preparation: only make the alternative “threat” if you have leadership’s approval and a contract or project plan essentially ready to execute. Then it’s not a bluff at all.

Q: Is it risky to use a hybrid approach (partial third-party, partial Broadcom)?
A: It introduces a bit more complexity, but it’s a manageable and often effective strategy. You will have multiple support relationships to juggle, and you need to ensure nothing critical slips through (for example, knowing which help desk to call for which system). Broadcom might also ask a lot of questions about your split strategy – they’ll be curious which parts of the environment they lost and might try to win them back later. As long as you clearly delineate what’s covered by whom and communicate internally about the support procedures, the hybrid approach is not overly risky. In fact, it can reduce risk by avoiding an “all-or-nothing” switch. Keep an eye on any license compliance implications (e.g., if you drop support for certain licenses, ensure you’re still using them within the rights you have).

Q: What if internal stakeholders are nervous about third-party support or switching vendors?
A: This is common. To address it, involve those stakeholders early in the evaluation of alternatives. Show them data – such as case studies of other companies that have successfully used third-party support, or a pilot you ran that demonstrated the alternative works. Emphasize that exploring alternatives doesn’t mean immediately abandoning Broadcom; it means creating options and negotiating power. Often, executives get more comfortable when they realize that even if we don’t switch, just having a credible option saved us money on the renewal. Additionally, you can propose a small trial – maybe keep 90% of things the same for now, and try an alternative on 10%. Success in that 10% will build confidence and reduce fear. Your role is to balance caution with facts and a clear plan, so that stakeholders view this as a strategic move rather than a gamble.

Considering early renewal? – Early Renewal Negotiation with Broadcom – Pros, Cons, and Tactics.

5 Actionable Tips for Leveraging Alternatives at Renewal

1. Always have a real alternative ready. Don’t walk into a Broadcom renewal with empty hands. Before negotiations, secure a concrete alternative – whether it’s a quote from a third-party support provider or a detailed migration plan to a competitor. This gives you tangible leverage. Broadcom takes you seriously when they know you genuinely have somewhere else to go.
2. Use third-party support for stable systems to cut costs. If parts of your environment (like certain VMware instances or legacy software versions) are stable and don’t need new features, consider third-party support for those. It’s a quick way to trim the renewal fat. For example, keep mission-critical systems on Broadcom support if needed, but move the rest to an independent provider at 50% of the cost. This hybrid tactic saves money immediately and demonstrates to Broadcom that you mean business about optimizing spend.
3. Don’t go “all or nothing” – consider partial moves. You don’t have to migrate everything at once. In fact, cherry-picking some workloads or products to shift away from Broadcom can be very effective. It reduces your dependence and sends a warning shot to Broadcom without the risk of a full upheaval. Identify one or two areas that have viable alternatives and start there. This gradual approach builds leverage over time and can be expanded if Broadcom remains inflexible in future cycles.
4. Communicate your alternatives strategically. When discussing with Broadcom, share enough information to make your point, but not so much that it becomes an ultimatum or a hostile stance. For instance, calmly explain the cost disparity or capabilities you’re seeing from the alternative. Let them know you’d prefer to find a solution with Broadcom, but the numbers have to make sense. By being professional and data-driven in these discussions, you invite Broadcom to collaborate on a better deal. They’ll realize you’re not bluffing, you’re simply ensuring your organization gets the best value – with or without them.
5. Be prepared to follow through. Perhaps the most important tip: if Broadcom doesn’t concede sufficiently, be ready to execute your Plan B. This means having internal approvals and resources lined up to actually switch that support contract or begin that migration. It may be uncomfortable, but walking away can sometimes be the best move for long-term benefits. Even initiating a partial switch can set the tone for future negotiations. Conversely, if Broadcom does accommodate your needs, you’ve lost nothing – you can stay with a better contract. In either case, your preparedness to act is what gives weight to your alternative leverage.

By applying these tips, you turn the renewal process from a one-sided push by Broadcom into a balanced negotiation.

The overarching principle is simple: always have options and ensure Broadcom is aware of them. Alternatives at renewal time serve as your safety net and bargaining chip – use them wisely, and you’re far more likely to secure a favorable outcome.

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