Mitigating Risks When Using Alternatives to Broadcom
Introduction – Alternatives as Leverage, Not Reckless Escape
Broadcom’s recent moves have left many enterprises frustrated. Steep price hikes, subscription-only licensing, and restrictive terms are driving CIOs to seek alternatives, whether through third-party support or new vendors.
However, the risks of switching from Broadcom – or even using third-party support – cannot be ignored.
Pursuing an alternative isn’t about a reckless break; it’s about using leverage strategically. The goal is to control costs and regain flexibility without compromising operational risk.
A well-planned exit or diversification can strengthen your negotiating position. It must be handled methodically.
This guide examines the risks associated with third-party support and switching products, and outlines steps to mitigate these risks.
You can explore options beyond Broadcom, but you must do so safely.
Read our guide to Leveraging Third-Party Support & Alternatives: Gaining Negotiation Leverage Against Broadcom.
Common Risks with Third-Party Support
Moving your maintenance to a third-party provider can save money, but it comes with risks:
- Loss of updates and fixes: Without Broadcom support, you will no longer receive new patches and upgrades. Over time, this can create security vulnerabilities or compatibility problems as your software ages.
- Contractual constraints: Some vendor agreements restrict your rights after leaving support. You might lose access to certain features or be legally barred from using specific patches once you’re no longer a customer.
- Cost to return later: If you wish to rejoin Broadcom support in the future, you may incur substantial reactivation fees or backdated charges. These penalties can erase the savings you got from third-party support.
- Compliance gaps: Outdated, unpatched software might fall out of compliance with security or regulatory standards. Auditors could flag unsupported versions, putting your certifications at risk.
How to Mitigate Third-Party Support Risks
If third-party support makes sense, take these steps to reduce risk:
- Archive vendor patches: Before ending Broadcom support, download and save all patches, updates, and license keys you’re entitled to. That way, you have the latest fixes on hand even after your contract lapses.
- Keep a support foothold: Consider keeping one non-production system (e.g,. a test server) under Broadcom support. This preserves access to updates and knowledge bases while the rest of your environment is handled by the third-party.
- Strong SLAs & indemnity: Ensure the third-party contract includes clear SLA commitments and indemnification. They should guarantee timely issue resolution and protect you legally if their fixes infringe on Broadcom’s intellectual property.
- Document entitlements: Keep records proving your license ownership and past support status. If Broadcom ever questions your use of certain versions or patches after you left, you can provide documentation to demonstrate that you were fully licensed and entitled.
Risks in Switching Vendors or Technologies
Replacing a Broadcom product with a different solution can break the dependency, but it introduces new risks:
- Migration complexity & downtime: Moving to a new platform (e.g., VMware to Hyper-V) is a major project. Conversion issues or other missteps could cause outages or performance problems during the cutover.
- Integration and feature gaps: A new tool may lack equivalent features or fail to integrate seamlessly with existing systems. For example, switching from CA to BMC software could break custom integrations or require rewriting scripts.
- Retraining dip: Your IT staff and users must undergo training on the new system. Expect a learning curve, where productivity dips and user errors increase, until everyone becomes accustomed to the system.
- Unplanned costs: Switching often brings hidden costs (migration tools, consultants, dual-running systems, etc.). Such projects also tend to run over time and budget, reducing your expected savings.
- Vendor pushback: Switching mid-contract can trigger penalties. Broadcom might refuse refunds for unused support and could create technical or legal roadblocks to discourage your move.
How to Mitigate Product Switch Risks
Use a structured approach to minimize risk when migrating to a new vendor or platform:
- Pilot on a small scale: Test the new solution on a limited slice of your environment (maybe 10–20% of workloads, non-critical systems). Validate compatibility and performance in this pilot before rolling out the full solution.
- Require a POC: Have the new vendor run a proof of concept in your environment. Insist on clear success criteria, and only proceed if the POC results are satisfactory.
- Secure a return path: Negotiate terms to rejoin Broadcom support if needed in the future. For example, arrange a clause to reinstate support within 1–2 years for a fixed fee. This provides you with an insurance policy in case the switch fails.
- Train and dual-skill staff: Train your team on the new system in advance, while also maintaining access to Broadcom’s expertise. You need people who can run both environments during the changeover.
- Run systems in parallel: Don’t shut off the old system on day one. Plan to run the old and new solutions in parallel for a while. If the new platform experiences a serious issue, you can temporarily fall back to the Broadcom-supported system.
Using RFP process to create leverage, Running an RFP for Competitive Leverage Against Broadcom.
Contractual Safeguards – Preparing an Exit and Return Path
Contracts and terms can make or break a safe transition:
- Review Broadcom’s policy: Learn Broadcom’s rules if support lapses. Is there a grace period? What fees apply to reinstating later? Be aware of these details upfront to avoid any surprises.
- Negotiate reactivation terms: Try to obtain a written clause that allows you to rejoin Broadcom support within a specified timeframe (e.g., 1–2 years) for a fixed penalty. It’s easiest to secure this while you’re still a customer.
- Ensure flexibility in new deals: Ensure the new vendor’s contract includes escape options. Avoid long, locked-in terms – favor shorter renewal cycles or opt-outs so you can pivot if the service under-delivers.
Read about alternative products in “Alternative Solutions to Broadcom Products: A Replacement Guide.”
Partial Migration Strategy – Balancing Safety and Leverage
You don’t have to go “all-in” on leaving Broadcom. A partial move can yield benefits with less risk:
- Limit exposure: Only move part of your workloads. Critical systems stay on Broadcom support, so any issues with the alternative only affect a limited scope.
- Show seriousness: Even a partial shift proves to Broadcom that you’re willing to leave. This can prompt them to improve your deal to keep the rest of your business.
- Gather real data: A parallel run lets you compare the alternative’s cost and performance against Broadcom’s. Use that data to decide your next steps or strengthen your negotiating position.
Governance Checklist for a Safe Transition
Treat the transition as a formal project with strong governance:
- Transition team: Establish a cross-functional team (including IT, security, finance, etc.) to oversee the move and mitigate potential risks.
- Metrics & monitoring: Define key metrics (uptime, ticket resolution, and costs) and closely monitor them. Ensure the new support meets SLAs and that new issues don’t offset savings.
- Regular reviews: Conduct quarterly check-ins to identify and address any emerging vulnerabilities, compliance issues, or performance problems promptly. Adjust course as needed.
- Documentation: Log all changes, patches, and issues during the switch. Good documentation helps with audits, compliance, or potential rollbacks.
- Audit compliance: After the switch, audit license compliance and security. Confirm you’re not violating any license terms and that regulatory standards are still met.
Example Scenarios – Safe Alternative Adoption
Real-world examples show how to balance change and caution:
- Scenario 1 – Partial VMware migration: An enterprise moves 20% of its VMware workloads to Hyper-V while keeping critical systems on Broadcom’s VMware support. Following a successful pilot (resulting in approximately 30% lower costs for that portion), Broadcom offers a significantly better deal to retain the remaining VMware workloads.
- Scenario 2 – Third-party support with safety net: One company leaves Broadcom’s support for a software product and switches to a third-party provider, roughly halving their maintenance costs. They also arrange a clause to return to Broadcom support later for a fixed fee. When a critical bug hits a year later, they invoke that option, briefly restore vendor support to get an official fix, then switch back to the third-party provider.
Checklist – Safe Alternative Adoption
Before moving away from Broadcom, run through this quick checklist:
- ✔️ Archive everything: Secure all relevant patches, updates, licenses, and documentation from Broadcom while you have access.
- ✔️ Pilot first: Don’t jump in blind. Do a trial run on a small scale before fully switching or ending support.
- ✔️ Know return options: Be clear on what it takes to undo the change. Negotiate reentry terms or use short contracts to avoid being trapped if things go wrong.
- ✔️ Split the risk: Consider partial moves or hybrid support instead of an all-or-nothing shift. Diversifying reduces risk.
- ✔️ Train up: Ensure your team is prepared to manage the new solution, and still has the knowledge to fall back to the old one if needed.
- ✔️ Monitor and adjust: After the move, closely track performance, support responsiveness, and costs. Be ready to adjust if results don’t meet expectations.
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Leveraging Third-Party Support & Alternatives in Broadcom Negotiations
