Leveraging Third-Party Support & Alternatives
Introduction – Why Broadcom Customers Need Options
Broadcom is known for a hardline approach with its acquired software (VMware, Symantec, CA). Customers often see renewal quotes that are double or triple their previous costs, with Broadcom pushing multi-year “take-it-or-leave-it” deals that offer minimal flexibility or discounts.
This aggressive stance – combined with strict compliance enforcement (including audit threats and a 20% late-renewal fee) – can force customers into unfavorable deals.
CIOs and procurement leaders can’t rely on Broadcom’s standard terms; they must find leverage beyond just asking for a discount.
The strongest leverage comes from credible alternatives. By exploring third-party support and competing products, you create a Plan B that Broadcom must take seriously.
If Broadcom knows you have viable options, they are more likely to negotiate. In short, always have a fallback plan – it’s the key to keeping Broadcom in check.
What Third-Party Support Is and How It Works
Third-party support refers to obtaining maintenance and support from an independent firm, rather than from Broadcom.
These firms specialize in Broadcom software (for example, supporting VMware or Symantec products) without the vendor’s involvement. In practice, you continue to use your licensed software, but you switch your support contract to a third party.
The third-party provider handles technical issues, bug fixes, and user support for your system. They typically charge far less than Broadcom’s maintenance (often about 50% of the cost).
The trade-off is that you forgo vendor upgrades – the third-party support team will continue to support your current versions with fixes and workarounds. Still, you won’t receive new feature releases from Broadcom while on independent support.
Benefits and Risks of Third-Party Maintenance
Third-party maintenance can yield major savings, but it comes with trade-offs. Key points to consider:
Benefits of Third-Party Support:
- Lower Cost: Independent support providers often charge around half of Broadcom’s official support fees, drastically cutting your maintenance spend.
- Extended Support Life: Third parties will support older software versions for as long as you need. You aren’t forced into unwanted upgrades – you decide if and when to update.
- Personalized Service: Because you’re a direct client (not one of thousands of Broadcom accounts), third-party support teams offer responsive, tailored service with SLAs that fit your needs.
- Leverage in Negotiations: Having a third-party support quote in hand instantly strengthens your position. It shows Broadcom that you have an alternative to their high support prices.
Drawbacks and Risks:
- No New Features: You lose access to Broadcom’s upgrades and new releases. Third-party support will fix issues on your current software, but you won’t get the latest features until you return to Broadcom maintenance.
- Possible Security Delays: If Broadcom releases a critical patch for new versions, your provider might only offer a workaround or delayed fix for your older version. There’s some risk in not getting patches directly from the source.
- Re-Entry Costs: Broadcom may penalize customers who leave and come back. You may need to pay backdated support fees or purchase new licenses to regain official support, making re-entry expensive.
- Strained Vendor Relationship: Leaving Broadcom’s support can strain your relationship. Broadcom’s sales team might become less cooperative, especially if you later need new licenses or help – they know you opted out once.
When to Use Third-Party Support in Negotiations
Third-party support works best when your environment is stable and you don’t need immediate upgrades. In that case, you can pause official support without much risk.
It can serve as both a bridge and a bargaining chip. As a bridge, it saves you money for a year or two while you plan your next steps. As leverage, having a real option to drop Broadcom support (with a quote in hand from an independent provider) puts pressure on them.
Start exploring third-party support well in advance of your renewal.
Then you can approach Broadcom armed with concrete savings figures.
Simply mentioning that you have a 50%-cheaper support alternative often makes Broadcom more flexible. They’d rather give you a discount than lose your maintenance business entirely.
Alternative Software Platforms: VMware, Symantec, CA
Another way to gain leverage is to consider alternative software that could replace Broadcom’s products:
- VMware Alternatives: Broadcom’s VMware suite is dominant, but it’s not irreplaceable. Options such as Microsoft Hyper-V, open-source KVM, or migrating some workloads to cloud services can reduce your reliance on VMware. Switching everything is complex, but simply planning to shift a portion of workloads to these alternatives will prompt Broadcom to reconsider its pricing and terms.
- Symantec Alternatives: For Broadcom’s Symantec security products, alternatives include Microsoft Defender (built into Windows) and CrowdStrike’s endpoint security platform. Many companies find these solutions equally effective and more cost-efficient. Showing that you could switch your antivirus/endpoint protection to Defender or CrowdStrike puts pressure on Broadcom to be more competitive.
- CA Mainframe Alternatives: Broadcom’s CA mainframe tools face competition from IBM and BMC. Migrating mainframe software is not trivial, but IBM and BMC offer equivalent products for most CA tools. Letting Broadcom know you’re evaluating IBM/BMC alternatives for key CA components will push them to offer concessions rather than risk a long-term customer migration.
Negotiation Tactics: Introducing Competition Without Burning Bridges
Bringing up third-party support or other vendors in your Broadcom negotiation requires finesse.
You want Broadcom to feel competitive pressure, but you also want to maintain a constructive relationship.
Tactics to consider:
- Stay Professional and Express Preference: Introduce your alternatives as due diligence, not a threat. For example: “Our board insists we explore other options to ensure best value.” Emphasize that you’d prefer to remain with Broadcom if they can meet your requirements. This maintains a cooperative tone while clearly indicating that you have options on the table.
- Use Formal Evaluations: Signal real competition by running a formal RFP or pilot with other providers. Broadcom will realize they must compete for your business rather than assume an automatic renewal. Having a structured evaluation or bidding process underway makes your alternative plan credible.
- Share Facts, Not Threats: Instead of saying “we’ll leave unless you cut the price,” share objective data from your research. For example, mention that an independent support quote came in 50% lower, or that a competitor’s solution could save you $X million. Presenting concrete numbers forces Broadcom to address the gap without you issuing an ultimatum.
By using these tactics, you make Broadcom compete for your business without souring the relationship. The message is firm but collaborative: you have options, and you need Broadcom to offer a fair deal.
Risks of Alternatives and How to Mitigate Them
Pursuing third-party support or switching products has its risks, but you can manage them with planning:
- Risk: Vendor Re-entry Barriers. If you drop Broadcom’s support now, reverting to it later can be costly. Broadcom might require you to pay lapsed fees or buy new licenses to reinstate support. Mitigation: Before leaving, negotiate a “right to return” clause if possible (e.g., a capped reinstatement fee). Also, maintain polite relations with Broadcom reps. Keeping the bridge intact makes it easier to return on good terms if you ever need to.
- Risk: Migration Costs & Downtime. Replacing a Broadcom product (such as moving off VMware, Symantec, etc.) can be expensive and carries a risk of disruptions during the transition. Mitigation: Start with a small pilot or partial migration to test the viability of the alternative. Utilize phased rollouts and implement a rollback plan to minimize downtime. Proving the alternative works on a small scale will build confidence before a full cutover.
- Risk: Contractual/Compliance Traps. Broadcom contracts may have clauses that complicate dropping maintenance or splitting your environment. You also risk audits if you use the software in ways that violate the license terms after support has been discontinued. Mitigation: Review your contracts with your legal team before making a move. Ensure you’re not inadvertently breaching any terms.
Hypothetical Case Scenarios and Lessons Learned
Real-world examples (anonymized) show how alternatives can drive better outcomes:
- Third-Party Support Scenario: One company left Broadcom support for a year and cut its maintenance costs by over 50%. Broadcom then wooed them back with a renewal offer about 30% cheaper than before. Lesson: Proving you can leave (even briefly) compels Broadcom to improve their deal.
- Competitive Alternative Scenario: A financial firm received a proposal from a Broadcom competitor and presented Broadcom with an analysis of relocating part of its workloads. In response, Broadcom offered a 20% discount and more flexible terms to keep the business. Lesson: A credible threat backed by data forces Broadcom to negotiate.
Actionable Checklists for CIOs and Procurement Teams
Checklist: When to Consider Third-Party Support
- Stable Environment: Your software is running reliably on a mature version, and you don’t urgently need new features.
- High Support Costs or Budget Pressure: Broadcom’s maintenance fees are extremely high, and leadership is pushing to cut costs. A third-party provider’s half-priced maintenance offers immediate relief.
- Backup Plan Ready: You have vetted a third-party support provider and are comfortable with their service. All stakeholders (IT, security, legal) agree that if Broadcom won’t budge, you can switch support without unacceptable risk.
Checklist: Evaluating Alternative Solutions
- Define Requirements: List the must-have features and performance needs currently provided by the Broadcom product. Make sure any alternative you consider meets these core requirements (or that you have a plan to address any critical gaps).
- Calculate True TCO: Estimate the total cost of the alternative, including new licenses, migration services, training, and potential productivity impacts. A lower license price isn’t a true savings if you face high switching expenses, so factor in all the costs.
- Pilot First: Test the alternative on a small scale before rolling it out fully. For example, move a sample of workloads to Hyper-V or deploy a few endpoints with a new security tool. Use the pilot results to gauge feasibility.
- Stakeholder Alignment: Ensure the CIO, CTO, and other key leaders support the exploration of alternatives. Everyone understands why you’re considering a change and is prepared to approve it if needed. This unified front makes your negotiation stance much stronger.
Sample Negotiation Language for Raising Alternatives
(Use calm, fact-based language when bringing up your options with Broadcom. For example:)
- “Our management asked us to review third-party support options that are about 50% lower in cost. We’d prefer to stay with Broadcom support if we can get closer to those economics.”
- “At the current proposal price, it will be hard for us to justify not shifting at least some workloads to a cheaper platform next year. We want to avoid that, so we’re looking for any flexibility you can provide.”
- “If Broadcom can come close to the value we’d get from these alternatives – whether via better pricing or added services – then it’s an easy decision for us to renew with you. Otherwise, we’ll have to consider our Plan B.”
Each of these statements signals that you have alternatives lined up and business reasons to pursue them, but that you’d still prefer to reach a workable deal with Broadcom.
The tone is firm yet collaborative, encouraging Broadcom to improve the offer without feeling attacked.
Related articles
- Third-Party Support Providers for Broadcom Customers: Pros & Cons
- Alternate Solutions to Broadcom Products: A Replacement Guide
- Mitigating Risks When Using Alternatives to Broadcom
- Running an RFP for Competitive Leverage Against Broadcom
Read about our Broadcom Negotiation Service.
