Researching Broadcom Pricing & Benchmarks
Broadcom pricing benchmark research
Introduction: Broadcom’s recent acquisitions of enterprise software giants (VMware in 2023, after CA Technologies in 2018, and Symantec Enterprise in 2019) have sent shockwaves through IT procurement.
Customers have witnessed dramatic price increases and stringent new licensing terms following the acquisition.
In some cases, renewal quotes doubled, tripled, or even quadrupled – there are reports of 4- to 8-fold hikes for the same software. In this climate, entering a Broadcom negotiation without pricing intelligence is a risky move. Read our overview for Planning a Broadcom Software Negotiation: Timeline, Preparation & Checklist.
Understanding how Broadcom sets list prices, what typical discounts look like, and where to find benchmark data has become critical for any enterprise hoping to avoid overpaying.
This guide breaks down Broadcom’s pricing structure, typical discount benchmarks, sources of market data, and practical tips for leveraging that information at the negotiating table.
1. Understanding Broadcom’s Pricing Structure
Broadcom is known for a high-list-price, hardline pricing model.
After acquiring product lines like VMware, Symantec, and CA, Broadcom often raises list prices significantly and reduces the generous discounts customers might have previously enjoyed. The result? Sticker shock at renewal time.
Broadcom’s initial quotes to renewing customers tend to be “take-it-or-leave-it” offers with steep increases. They know many customers rely on these core infrastructure products (virtualization, security, mainframe tools) and face painful switching costs. Broadcom’s CEO has openly stated that the company focuses on its largest, “sticky” Global 2000 clients and is less concerned if smaller or price-sensitive customers leave.
This philosophy means smaller enterprises or nonprofits get little leeway – for example, under Broadcom, even academic and charity discounts that VMware once provided have been eliminated. Broadcom is essentially telling customers: if you can’t pay, you’re free to walk – a stance that puts immense pressure on those who feel locked-in.
List vs. Negotiated Price:
It’s essential to acknowledge that Broadcom’s list prices are often artificially inflated, anticipating that most deals will be discounted during negotiations. The list serves as a starting point, giving Broadcom room to offer a “discount” while still landing at a very lucrative number.
Without benchmarks, you might be fooled by a seemingly decent 20% discount that, in reality, still yields a much higher price than you were paying before.
Broadcom’s post-acquisition strategy frequently involves bundling products into suites and pushing multi-year subscriptions, which further obscures the true per-product cost.
Customers are encouraged (and sometimes forced) to buy product bundles (e.g,. VMware’s entire Cloud Foundation suite) instead of individual products, and to commit to 3-year or longer terms.
Broadcom argues this simplifies licensing and ensures support continuity – but it also locks in revenue for them and limits your flexibility. If you only need part of a bundle, the “all-in” pricing can make your effective costs skyrocket.
Multi-year commitments and renewals:
Broadcom strongly prefers committed, multi-year agreements over one-off or year-by-year purchases. They often incentivize 3–5 year deals with slightly better pricing or terms, because it guarantees them revenue and reduces churn.
However, beware: unless you negotiate protections, a longer deal can backfire if Broadcom has free rein to increase prices later.
Broadcom’s standard contracts may include no cap on renewal increases, meaning when your term is up, they could quote an eye-watering renewal price (we’ve seen cases of 200%–300% increases at renewal when no cap was in place).
They also impose strict renewal policies – for instance, penalties for late renewal (often ~20% fee if you miss the deadline) and the threat of cutting off support if you don’t sign a new contract in time. Broadcom will use this pressure to its advantage.
The key takeaway is that Broadcom’s pricing structure is designed to maximize its revenue, featuring high lists, limited discounts, long-term commitments, and aggressive renewal terms.
Understanding this upfront helps you prepare your negotiation strategy and mindset – assume the first quote will be high, and that you’ll need to proactively push back to achieve a fair deal.
Read about why you should review your usage before you negotiate, Conducting an Internal License Audit for Broadcom Deals
2. What Benchmark Discounts Look Like
Typical discount ranges:
In the enterprise software world, large deals often come with significant discounts off list price – and historically, VMware was no exception, sometimes offering 30–50% off for big enterprise license agreements.
Under Broadcom’s ownership, those generous cuts have become much rarer.
Broadcom is notorious for minimal discounting except on the very largest contracts. For many mid-sized customers, initial renewal quotes have little to no discount at all (effectively asking them to pay list price).
That said, bigger enterprises can still negotiate meaningful discounts.
As a rule of thumb, organizations with major, multi-product, or multi-million-dollar engagements might achieve a discount of 20–35% after hard negotiation – and in exceptional cases, perhaps around 40% off or more, if Broadcom is truly committed to securing a long-term deal.
Conversely, a smaller deal (say a single-product renewal for a modest environment) may only see single-digit or low-teens percentage discounts, if any. These ranges aren’t guarantees, but they reflect what many enterprises report as achievable benchmarks.
Renewals vs. new licenses:
Broadcom also tends to treat renewals differently from net-new sales. Suppose you are renewing support or subscriptions for existing deployments. In that case, Broadcom knows you have limited options (either pay or lose support), so they often start with an extreme price hike and force you to negotiate just to temper it.
It’s not uncommon to see an opening renewal quote that is 2x or 3x your previous price – essentially wiping out any legacy discounts you had. New license purchases or expansions, on the other hand, might have a bit more wiggle room, especially if Broadcom is keen to upsell you additional products.
For example, if you are considering adopting a Broadcom security product alongside your VMware renewal, the sales team may offer a bundle discount to sweeten the multi-product deal.
Enterprise License Agreements (ELAs) or Portfolio agreements that bundle multiple Broadcom offerings typically unlock the best discounts. Broadcom’s logic is simple: the larger the total contract value, the more discount they can justify.
One enterprise that consolidated four separate contracts into a single $20M ELA deal found that Broadcom moved them into a higher discount tier, yielding roughly an extra 10% off compared to the separate deals.
In contrast, if you only negotiate in isolated silos, you might miss out on volume-based discounts.
Benchmarks matter:
When evaluating Broadcom’s offer, focus on the effective price you’ll be paying relative to value, not just the headline “X% off.” If a competitor or the previous VMware regime had charged you $1 million, and Broadcom’s “30% off” still has you paying $1.5 million, that discount number is not “good” in any absolute sense.
Industry benchmarks indicate that with astute negotiation, customers have managed to claw back some of Broadcom’s increase – perhaps bringing a 3x initial quote down to a 1.5x increase, for instance.
In percentage terms, achieving a 15–25% reduction off Broadcom’s starting quote is a realistic goal for a mid-size renewal, and 30%+ off for a large ELA isn’t out of the question if you leverage all your bargaining chips (volume, multi-year commitment, willingness to consider other Broadcom products, etc.).
The very highest discounts (40–50% off the list) are mostly seen in either legacy contracts grandfathered from pre-Broadcom times or in special cases, such as early subscription conversion programs. (Broadcom did, for example, offer some customers a one-time 50% first-year discount to convert their VMware perpetual licenses to subscription soon after the acquisition – but such deals were exceptions and often came with the catch of full list price in later years.)
The bottom line: calibrate your expectations using external data and your own past deals. If Broadcom’s quote seems far outside the typical range, it’s a red flag that you should negotiate aggressively.
3. Where to Find Reliable Benchmark Data
To negotiate effectively, you need solid information on what “fair” pricing looks like. But where do you get these Broadcom pricing benchmarks?
A few trusted sources can help:
- Industry Analyst Research: Firms such as Gartner, Forrester, IDC, and others frequently publish reports or advisory notes on enterprise software pricing. They may not give explicit price lists, but they share insights such as “average discount achieved on large deals” or strategies top buyers use. For example, analysts have noted the scale of Broadcom’s VMware price hikes and advised clients to prepare exit options. If your organization has access to analyst research, look for contract negotiation toolkits or vendor-specific pricing guidance.
- Peer Networks and Communities: Sometimes the best intel comes from your fellow IT leaders. Tapping into CIO forums, user groups, or informal peer conversations can yield ballpark figures. Many large enterprises have quietly compared notes on Broadcom negotiations through professional networks. You might ask, without requesting confidential info, if peers in your industry have seen similar renewal quotes. Even public forums and social media (such as LinkedIn discussions) can occasionally surface anecdotes (e.g., “Our VMware renewal came in at a 150% increase – we pushed back and got it down to 50% increase”). Treat individual anecdotes cautiously, but collect enough of them, and you start to see a pattern of what’s typical.
- Third-Party Advisors and Consultants: Several consulting firms specialize in IT price benchmarking and negotiation support. These advisors often gather anonymized data from numerous client engagements, allowing them to establish empirical benchmarks for Broadcom deals. Engaging such a firm (or even just consuming their free blog content) can give you a sense of what discount range similar companies have obtained. For instance, some advisors report that structured negotiations have saved clients on the order of 15–20% compared to Broadcom’s initial offers. Consultants can also tell you if Broadcom is quoting you outlier numbers (either very high or even surprisingly low) based on current market conditions. If you have an existing relationship with a procurement advisory firm, leverage them to get the latest Broadcom intel. Just be mindful of any confidentiality agreements – they will share ranges and best practices, not other companies’ contracts.
- Your Own Historical Data: Don’t overlook internal benchmarks. Review your last contracts with VMware, Symantec, or CA (before Broadcom’s changes). What effective discount were you getting then? How much were you paying for support vs. licenses? This establishes a baseline for evaluating the new pricing. Broadcom’s aim, frankly, is often to eliminate those old discounts and charge closer to full price. Knowing “we used to pay $X for this capacity” helps you quantify how far the new quote deviates. Additionally, if your organization has previously negotiated with vendors like Oracle, SAP, or IBM, consider those experiences – Broadcom is behaving similarly now. Historical price-to-value analysis (like cost per user or per core) from your side can be a compelling data point to bring up: “Our cost per VM will jump from $100 to $400 if we accept this – that’s far above industry norms.”
In practice, you’ll want to gather at least 2–3 independent data points to cross-check Broadcom’s proposal. Maybe an analyst report, plus a peer conversation, plus an advisor’s opinion.
The goal is not to find an exact price (every deal has unique aspects), but to arm yourself with a realistic benchmark range.
With that in hand, you can confidently call out an unreasonable quote and, conversely, recognize a deal that is in line with market expectations.
Remember to sanitize any benchmark data you use: you can cite percentages or relative figures (“mid-market firms are getting ~20% off list”) without revealing any proprietary info from a specific source.
4. Using Benchmark Data in Your Negotiation
Having pricing benchmarks is only half the battle – you need to deploy that data effectively during negotiations with Broadcom. Here are key ways to put your benchmark intelligence to work:
Validate (or challenge) Broadcom’s offer:
When you receive Broadcom’s initial quote, immediately stack it up against the benchmarks you gathered. Is their “best and final” price truly in line with what others are paying? Often, you’ll find that Broadcom’s initial offer is significantly above typical market pricing. Use your data to call this out (diplomatically).
For instance, if you know similar enterprises secured a 25% discount on a three-year deal, but Broadcom is only offering you 10%, you have grounds to question why.
Sometimes, just signaling that you’re informed can make the rep realize you won’t be an easy sell. You might say, “We’ve done our homework and see that large customers like us usually don’t pay the full list. Let’s talk about narrowing this gap.”
Essentially, benchmarks let you push back on the “take-it-or-leave-it” stance by proving you’re aware of alternatives and norms.
Tie benchmarks to your own profile:
Raw numbers are good; contextualized numbers are even better.
Make it clear to Broadcom that, given your high spend volume and loyalty, you expect a price in line with that of top-tier customers. For example, “We spend $5M+ annually on VMware – organizations of our size typically get enterprise-level discounts. We need to see something closer to a 30% reduction if we’re committing that budget.”
By linking the requested discount to your scale, you’re implying “we know our worth”. Broadcom is more likely to concede if they believe you genuinely know what a fair outcome is for a customer of your stature. Internally, benchmark data can help you set a walk-away point as well.
If Broadcom simply won’t come near the realm of reasonable pricing (say your research says 20% off is fair and they refuse to budge from 5%), you may decide to pursue alternatives or escalate the issue.
Leverage competitive options with data:
One powerful negotiation tactic is presenting a credible alternative – and using benchmarks to underscore it. Broadcom assumes most VMware customers won’t endure the pain of migrating to another platform.
You can counter that by investigating other options (public cloud, alternate software, third-party support vendors) and even obtaining rough cost estimates for those. Then, during negotiation, you might mention, “We have an option B that costs roughly $X over three years, which is considerably less than what you’re proposing.
We’d prefer to stay with Broadcom if the pricing is competitive, but we can’t ignore a gap that large.” This puts the onus on Broadcom to either sharpen its pencil or risk losing the business. Be careful not to bluff unrealistically – Broadcom will call it if they sense you have no real plan.
However, if you can show that your leadership is willing to invest in a migration or a third-party support contract to escape an unfair deal, Broadcom is more likely to improve its offer to retain you.
Companies that have done this homework have seen Broadcom suddenly become more flexible, sometimes offering an extra discount or concession when faced with a data-backed ultimatum.
Escalate with evidence if needed:
Broadcom’s front-line sales teams are known for sticking to their guns.
If you find negotiations stalling with your account manager, don’t hesitate to escalate the discussion to higher-ups, and bring your benchmark data into that conversation. A CIO-to-CIO or CIO-to-VP discussion, for example, can be framed around partnership and long-term value.
In that context, you can plainly lay out: “We want to continue our relationship, but our analysis shows this deal is outside industry norms. We’ve seen organizations achieve much better pricing at our scale.
Help us get there so we can both succeed.” High-level Broadcom executives do not want to gain a reputation for price-gouging strategic customers, as it may result in them losing those customers.
Presenting independent pricing intelligence (analyst data, third-party benchmark reports, etc.) to a Broadcom executive can lend credibility to your case, beyond just “we think it’s too expensive.” It demonstrates that your stance is grounded in facts, not just tough talk.
This can prompt Broadcom to review the deal and perhaps come back with a more palatable proposal or creative solution (like throwing in an add-on product or extra year at no charge, etc.).
Maintain your walk-away power:
Perhaps the most important aspect of using benchmarks is how it strengthens your resolve. Knowing what the market deems acceptable gives you confidence to say “no” and mean it if Broadcom’s offer is outrageous.
It’s easier to hold your ground when you have data showing, for example, that paying a 300% increase is not something other enterprises tolerate either.
With that conviction, you can tell Broadcom, “We have a responsibility not to overpay. If we can’t reach an agreement that aligns with market standards, we will have to consider scaling back our Broadcom footprint.”
That threat carries weight when it’s backed by both a viable plan and factual justification. Ironically, being truly prepared to walk away often results in not having to – the vendor usually comes around and narrows the gap once they see you’re informed and willing to act on that information.
Finally, use benchmarks internally as well.
Educate your procurement and executive team about where Broadcom pricing typically lands. This will help in getting approvals and aligning expectations.
For instance, if the CFO understands that “an X% increase is unfortunately common under Broadcom, but we’ve negotiated it down to Y%, which is at the low end of industry range,” you’re more likely to get backing for the deal – or for the decision to pursue alternatives if Broadcom wouldn’t budge.
In short, leverage your research not just as a hammer over Broadcom’s head, but as a guide to inform your own strategy and to justify your position both externally and internally.
5. Common Mistakes to Avoid
Even with good data at hand, there are pitfalls in the process.
Avoid these common mistakes when benchmarking and negotiating with Broadcom:
- Taking Broadcom’s first quote at face value: Never assume the initial renewal or purchase quote is the real price. Broadcom’s opening bids are often inflated and exploitative, banking on some customers just signing off. Treat that first quote as a worst-case scenario. It’s the starting point for negotiation, not the final word. Many who accepted early quotes later discovered they could have gotten a much better deal if they had pushed back or sought benchmarks.
- Confusing list price and effective price: This is a classic trap. Broadcom might show you a contract that says “30% discount” and make it sound generous – but if that 30% off is applied to a list price they doubled last year, you’re still paying a lot more in the end. Always break down the pricing. Ask for itemized numbers if possible. Know the per-unit cost you will effectively pay and compare that to your previous cost or competitive alternatives. Focus on the total cost of ownership over the term, not the cosmetic discount percentage. The only number that ultimately matters is the dollar figure you’ll be paying and what you get for it.
- Benchmarking without context: Not all deals are apples-to-apples. A huge global ELA that includes mainframe software and security might have a higher discount percentage than a narrow VMware-only deal – or vice versa, depending on Broadcom’s focus. When using benchmarks, ensure you’re comparing similar scope and circumstances. For example, don’t expect the same deep discount on a $1 million renewal that a $10 million new ELA got. Also factor in timing: a benchmark from 18 months ago (pre-acquisition or early transition period) might no longer be attainable now if Broadcom’s strategy has shifted. Use recent and relevant benchmarks as your guide.
- Overlooking product bundling and support in comparisons: Broadcom often bundles support and software in one price now. If you hear a peer quote “we got 20% off,” find out if that was 20% off an all-in subscription (licenses + support) or just off license fees with support added separately. The structure can change the math. Similarly, one deal’s discount might have been high because it required the customer to purchase several shelfware modules. In effect, they paid more for things they didn’t need, which isn’t a true “discount” when you look at the value realized. So, adjust your comparisons to account for what’s included in the price.
- Revealing confidential data or sources: This is primarily a matter of negotiation etiquette. You may have access to great benchmark information thanks to an NDA-protected source or a friend at another company. Don’t burn those bridges by telling Broadcom, “Company X gave me their contract to review,” or quoting exact numbers that clearly came from a specific competitor. Instead, generalize the data by saying “industry benchmarks” or “independent analysis suggests…” Broadcom likely knows customers talk, but you should avoid legal trouble or ethical issues. Use the knowledge without explicitly disclosing proprietary details. The vendor will understand that you’re aware of the market, and you stay on safe professional ground.
- Failing to factor in future needs: One more pitfall is focusing too much on the immediate price and not enough on future flexibility. A slightly higher price today might be worth it if it comes with a cap on renewals or the right to adjust usage downward later. Conversely, a big discount now can evaporate later if you haven’t locked it in. So, avoid focusing solely on “what discount am I getting” and neglecting the contract terms that will govern your costs two or three years from now. Always negotiate price protections (caps, locked discounts) simultaneously with the upfront price. It’s a mistake to separate those – you might celebrate a good first-year price only to be ambushed at renewal.
By steering clear of these missteps, you’ll use your benchmark data more effectively and secure a deal that holds up over time, not just a paper win that later unravels.
FAQs
Where can I find reliable pricing benchmarks for Broadcom products?
Start by checking industry analyst resources (e.g., Gartner, Forrester) for any vendor negotiation reports or notes on Broadcom/VMware pricing – these often contain generalized discount ranges or advice. Networking with peers is invaluable: discuss with other CIOs or IT sourcing professionals (informally or through user groups) to hear about the outcomes they’ve achieved. Specialized IT procurement advisors and benchmarking firms can provide anonymized data if you engage them or read their publications. Additionally, review your own historical deals and any alternative vendor quotes you’ve gathered; those serve as benchmarks as well. Combining multiple sources – analyst insights, peer input, third-party data, and internal records – will give the clearest picture.
What’s a fair discount to aim for with Broadcom?
“Fair” will depend on your deal size and context, but generally, you should aim for a double-digit percentage discount at a minimum. For a large enterprise agreement (multi-year, multi-product), it’s reasonable to shoot for something around 25–35% off Broadcom’s list prices, since similar big spenders have achieved that range. If you’re a mid-sized customer with a more limited scope, targeting maybe 15–20% off is a sensible goal based on industry norms. Smaller contracts might see under 10%, but you should still ask and justify why you deserve more. Remember, under VMware’s old model, discounts of 40–50% were common for big deals – Broadcom may resist going that far now, but it sets a reference point. Use your benchmark data: if you know companies of your size got, say, 30% off, there’s your benchmark to aim for. “Fair” also means a price that aligns with the value you’re getting and the market alternatives. If Broadcom’s price after discount is still much higher than the cost of replacing the solution or running on a competitor, then the discount isn’t truly fair. So, define ‘fair’ in terms of both percentage off the list and overall total cost in the context of your options.
Do benchmarks vary by region or product line?
To some extent, yes. Broadcom tends to enforce a globally consistent pricing approach (especially for VMware products), but there are regional nuances. For example, if a certain region (such as Europe or Asia) has more competition or different adoption rates, Broadcom might be a bit more flexible there. However, for core products like VMware’s suites, most enterprises worldwide are seeing similar tactics and percentage increases. The larger variance is by product line: Broadcom’s portfolio spans infrastructure software (VMware), security (Symantec), mainframe (CA), and others, and the benchmark discounts can differ for each. You might find that VMware virtualization products have a different margin and competitive landscape than mainframe software, resulting in slightly different discount potential. Always try to get benchmarks specific to the product set you’re buying. If you’re negotiating a bundle (e.g., VMware + Symantec together), look for data on combined deals. Also note that certain legacy products that Broadcom considers “cash cows” might have very strict pricing (low discounts, high maintenance fees).In contrast, newer strategic offerings or cloud services might have promotional pricing. Overall, while there are some regional and product differences, Broadcom’s post-acquisition strategy has been fairly uniform: high prices, limited discounts, and a focus on top customers.
How do I use benchmark data without breaching NDAs or confidentiality?
The key is to speak in general terms. Instead of saying, “Company ABC got 30% off on their contract and you offered us only 10%,” you’d say something like, “We have it on good authority that similar organizations are getting on the order of 25–30% off. We expect a competitive offer in that range.” You’re conveying the substance without naming names or specifics. If you obtained data through a consultant or an NDA report, you can reference it as “independent market research” or “industry benchmarks we’ve seen.” Broadcom is unlikely to press you for the exact source if you present it as a commonly known market fact. Also, use ranges or approximate figures rather than an exact number that might trace back to a specific case. For instance, say “upper teens percent discount” rather than “18.2%”. Keep your language high-level: “many customers”, “peer companies”, “analyst estimates”, etc. This protects you from disclosing any sensitive information. Internally, ensure your team is on the same page about what can and can’t be shared. If someone on your team had a privileged look at another contract, make sure they don’t accidentally blurt out “When I was at XYZ company, we paid $1234 per unit!” in front of Broadcom’s reps. It’s best to aggregate and sanitize any confidential information into a broader benchmark format before entering discussions. By being cautious, you can still leverage the insight (“we know what’s reasonable here”) without violating any agreements or professional trust.
5 Actionable Recommendations
- Gather pricing intel early and widely: Before you even sit down with Broadcom, collect benchmarks from at least three independent sources (analyst reports, peer benchmarks, past deals, or advisors). Early preparation ensures you won’t be guessing at what’s fair – you’ll have data to back you up.
- Always sanity-check Broadcom’s quote against the market: When you get a proposal, compute the effective prices and compare them to industry discount ranges and alternative options. If the quote is way out of line, confidently push back. Never accept a renewal or offer without benchmarking it against what others are paying.
- Leverage your spend for better terms: Tie your negotiation asks to your volume and importance as a customer. Use benchmarks relevant to your size – “customers our size usually get X% off”. This makes your case credible. The larger your commitment, the more you should demand competitive pricing in line with top-tier accounts.
- Use data to escalate and enforce accountability: If your account manager says “this is the best we can do,” present your benchmark data to justify a higher discount or better terms, and don’t hesitate to escalate to higher management. Showing that you have solid market intelligence gives you clout to negotiate with senior executives and not settle for a subpar deal.
- Document everything in a negotiation playbook: Keep a record of all benchmark data, target pricing, and concessions you aim for. Share this internally with all stakeholders (procurement, IT, finance) so everyone is aligned on the plan. This playbook will help you stay consistent in negotiations and ensure you don’t forget key asks. It also serves as a historical reference for future renewals. Having all your research and outcomes documented means you’ll be even better prepared the next time a Broadcom negotiation comes around.
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