Securing Broadcom Discounts & Concessions
Introduction – The Myth of “No Discounts” at Broadcom
Broadcom has earned a reputation for tough, “take it or leave it” pricing. After acquiring major software brands (VMware, CA, Symantec, etc.), the company became notorious for minimal discounts and steep renewal quotes.
Many customers assume Broadcom “doesn’t negotiate” at all – a myth reinforced by sticker shock experiences where initial prices come in at 5× or higher than what they paid before.
Broadcom’s profit-first approach and aggressive sales tactics make it feel like true discounts are off the table. For the complete guide, read Broadcom Negotiation Tactics: Pricing, Discounts, and Leverage Strategies.
However, no vendor is completely inflexible. With the right strategy and preparation, even Broadcom can be persuaded to offer meaningful discounts or valuable concessions.
The key is to understand Broadcom’s patterns and play the game strategically. Whether you’re a global Fortune 500 or a mid-market firm, you can secure better deals by leveraging timing, bundling, and creative asks.
The following guide outlines how CIOs and procurement leaders can break through Broadcom’s tough exterior and find savings and value in their next Broadcom negotiation.
1. Understanding Broadcom’s Discount Patterns
Limited Discount Ranges: Broadcom’s default stance is to keep pricing near the list. Unlike VMware’s past generosity (where enterprise license agreements often saw 30–50% off), Broadcom now often starts with single-digit or low-double-digit discounts at best.
For many standard deals, expect an initial offer of perhaps 5–15% off list price – a far cry from what customers used to get.
In fact, many organizations report struggling to obtain even half the discount percentage they once enjoyed under previous ownership. Broadcom deliberately tightened the discounting model to boost margins, so deeper cuts require heavy justification.
Variation by Deal Size:
Deal size and scope are critical. Smaller or routine renewals might see minimal wiggle room, while very large or strategic deals can unlock somewhat better terms. For example, a mid-sized customer renewing a single product might be told, “The price is the price,”.
In contrast, a global enterprise consolidating many products into a multi-million-dollar deal could push Broadcom into the 20–30% discount range. Broadcom’s sales teams have internal thresholds – the bigger the contract value, the more management approvals they’re willing to seek for a special discount.
Peak discounts on record (outside of unique one-time offers) tend to top out around the 30% range for top-tier customers, and anything beyond that is exceedingly rare. Broadcom resists deep cuts on list prices because it believes its software is mission-critical, with few alternatives, giving it confidence that customers will pay close to the full price.
Read about multi-product negotiation strategy, Multi-Product Negotiation Strategy with Broadcom: Bundling VMware, Symantec & CA.
Why Broadcom Resists:
Simply put, Broadcom is rigid on pricing to protect revenue. After investing heavily in acquisitions, they set ambitious profit targets – and squeezing discounts is a primary lever to hit those numbers. Every contract is viewed through a lens of maximizing revenue.
Broadcom also wants to avoid setting “low price” precedents; they would rather let a few customers walk away than broadly lower their pricing power. This means your initial quote will likely be very high, and any reduction will be hard-won.
Knowing this upfront is important: don’t be surprised by a high initial quote (often multiple times your previous rate) and don’t expect generous discounts without a fight.
However, understanding this pattern also means you can counter it by structuring your deal and negotiation approach to make concessions worthwhile for Broadcom.
2. Structuring Deals to Unlock Discounts
How you structure your proposal to Broadcom can have a huge impact on the discounts they’re willing to consider.
Bundle and scale your deal strategically to make it more attractive for Broadcom to give ground:
- Multi-Year Commitments as Leverage: Broadcom strongly prefers multi-year contracts (typically 3-year deals) over year-to-year arrangements. You can use this to your advantage. If you’re willing to commit to a longer term, leverage that commitment to extract a better price or terms. For example, offer to sign a three-year agreement instead of an annual renewal in exchange for a more aggressive discount or a price lock for the term. A multi-year deal increases the total contract value (and guarantees revenue for Broadcom), which can justify a higher upfront discount. Just be sure any multi-year agreement includes protections (no price increases mid-term) – more on that later. The larger financial commitment you’re making puts you in a position to demand something in return, whether it’s a percentage off or extra value.
- Global Volume Discounts (Aggregating Spend): Consolidate your purchases across your enterprise to gain volume leverage. Broadcom is more willing to negotiate if the deal spans multiple business units, regions, or product lines – essentially, if they see one large global deal instead of many small ones. Smart procurement teams co-term and coalesce separate renewals so that they all expire together and can be negotiated as a single package. By aggregating your spend, you may reach discount tiers that would be unreachable for each item on its own. For example, combining several divisional contracts worth $ 500,000 each into a single $2 million negotiation can elevate you to a higher discount bracket. Broadcom’s pricing approval system will consider that “larger deal = special case”, making concessions more likely. Always ask yourself: Can we negotiate on an enterprise-wide basis rather than piecemeal? If yes, use that volume to unlock better rates.
- Bundling Products Strategically: In Broadcom’s world, bigger deals get more attention, so consider bundling multiple products or services in one negotiation. If you have needs across Broadcom’s portfolio (e.g., VMware virtualization software, security software, mainframe tools, etc.), present them together. A bundle can trigger higher discount tiers because the overall contract value is higher. Additionally, Broadcom often has bundle promotions (like enterprise license agreements covering a suite of products) that come with built-in discount structures. By strategically including products you were going to buy anyway into one bundle, you can reach a threshold that qualifies for a volume discount or special pricing. However, bundle carefully – don’t let Broadcom force you into adding products you don’t actually need (we’ll cover this pitfall later). The goal is to include only a meaningful scope that strengthens your leverage. For instance, negotiating vSphere, vSAN, and NSX together in a package might yield a better overall discount percentage than buying each separately at different times. Use bundling to say: “We’re giving you a bigger deal; we expect a bigger discount in return.”
In short, structure your deal to be as large and consolidated as feasible, within the bounds of what you truly need. Broadcom is more likely to provide discounts or at least consider counteroffers when the deal size is significant and strategically important.
3. Concessions Beyond Price
If Broadcom simply won’t budge much on the headline price, shift the conversation to concessions beyond a straight discount.
Often, you can secure extra value in the form of services or contract terms that soften the blow of a high price. Some value-added concessions Broadcom is known to grant include:
- Extra Training and Services: Instead of (or in addition to) a discount, ask for complimentary training, consulting, or support services. Broadcom may offer a certain number of complimentary training credits, workshops, or certification vouchers to help your team become familiar with the software. They may also offer professional services hours to assist with deployment or migration. These extras have real value – they can save you tens of thousands in training costs or ensure a smoother implementation. Broadcom’s cost to provide this is lower than giving a big price cut, so they may prefer this form of concession. For example, you might negotiate for “50 hours of Broadcom consulting at no charge” or “free on-site training session for our administrators” as part of the deal. If internal budgets can’t increase, offering these services for free is a smart way to enhance the deal’s overall value.
- Extended Support or Maintenance Periods: Another concession to seek is extended support coverage at no additional cost. Broadcom’s standard support contracts are rigid, but you can request things like an extra 6 months of support free when you renew for multiple years, or an upgrade to a higher tier of support (e.g., 24/7 premium support) for the standard support fee. Broadcom has, in some cases, agreed to “13 months for the price of 12” or similar arrangements to close a deal. Additionally, if you’re being forced to migrate products (for example, moving from a legacy version to a new Broadcom bundle), request migration assistance as part of the package. This could mean Broadcom provides engineering support or tools to help you transition, or agrees to support the old product a bit longer during your changeover. These support concessions don’t lower the paper price, but they increase the value you receive (or avoid future costs), which is equally important.
- Flexible Payment Terms: Price isn’t the only cost factor – when and how you pay matters too. If Broadcom is inflexible on reducing the price, they might be more open to adjusting payment terms. Negotiate for flexibility in payments to ease budget impact. For instance, you could request annual or quarterly payments instead of one upfront lump sum. On very large deals, you might arrange a phased payment schedule (perhaps smaller payments in Year 1, ramping up in later years as you roll out the software). Broadcom may also agree to deferred start dates or billing – for example, you sign now but payments begin next fiscal quarter, giving you budget breathing room. If your fiscal year is a consideration, try to align payments so that they split across budget years. While these terms don’t change the total contract value, they improve cash flow and ROI timing for your organization. Broadcom, focused on closing the deal, will sometimes compromise on payment timing if it means securing the deal.
In all cases, think beyond just unit price.
Broadcom might say, “We can’t go any lower on price,” but that doesn’t mean the negotiation is over. Pivot to these non-cash items.
Often, you can assemble a package of concessions – a modest discount plus some free training, plus a small extended support period, for example – that together make the deal much more palatable. Every bit of value counts when direct discounts are limited.
4. Negotiation Tactics for Discounts
Beyond structuring the deal, how and when you negotiate with Broadcom can influence the outcome.
Use smart negotiation tactics to create leverage:
- Use Timing to Your Advantage: End-of-quarter or end-of-year timing can be a powerful card. Broadcom’s sales teams face intense quota pressures, especially as quarter-end approaches or during their fiscal year-end. If you can time your negotiation so that Broadcom needs your deal to meet a sales target, you may find them suddenly more flexible. For example, initiating final pricing discussions in the last few weeks of Broadcom’s quarter might unlock an extra few discount points or a thrown-in freebie as the rep pushes to close. That said, be careful with this tactic – don’t let their timeline force you into a rushed decision. You want to leverage quarter-end urgency without losing control of the process. The ideal scenario is to plan your procurement timeline so that Broadcom knows if they don’t meet your requirements by the end of the quarter, you’re content to wait (which they won’t want). In short, Broadcom’s calendar can create opportunities: they often dangle better terms if you sign by a certain date that matters to them.
- Escalate Beyond the Account Manager: If negotiations stall with your day-to-day Broadcom sales representative, don’t hesitate to escalate the conversation to higher-level personnel. Broadcom’s field reps have limited discretion on big discounts or unusual concessions – those typically require manager approval or higher. By bringing your CIO or CFO into discussions and requesting Broadcom’s sales director or even a VP to join the call, you signal that you mean business. High-level discussions can sometimes unlock concessions that a frontline rep cannot authorize. Broadcom is known for taking a hard line, but even they will bend if a large deal is at stake and senior executives are involved in the ask. For example, having your CIO directly speak to Broadcom’s VP for your account about the importance of a price reduction or a service commitment can put additional pressure on Broadcom’s side. Escalation also helps if you’re hearing “no” too often – a polite but firm request to involve their boss can reset the negotiation tone. Use escalation strategically (not as a threat, but as a necessity to get decisions made). Often, “higher up” conversations lead to creative solutions or exceptions that a sales rep alone might not offer.
- Leverage Alternatives and Third-Party Options: Broadcom wants to believe they have you locked in with no alternatives – you should subtly remind them that you do have options. Even if switching away from, say, VMware or CA software is difficult, you can create the perception (and partial reality) of competition. Research alternative vendors or solutions and be ready to mention them. For instance, note that you are evaluating other security platforms, cloud services, or that you’ve considered migrating some workloads to a competitor. You don’t need to outright threaten to leave Broadcom’s products, but you want them to know you’re not 100% captive. Another angle is third-party support: companies exist that provide support for VMware or other software independently, often at lower cost. If Broadcom’s renewal terms are too harsh, you might say you’re considering third-party support for a year or two while you evaluate long-term options. The mere fact that you have a Plan B increases your leverage. Broadcom’s team will realize they need to put a bit more on the table to keep your full business. Additionally, if you have any influence through partner channels or resellers, use it – sometimes a partner can advocate for you or come up with a creative quote that Broadcom direct wouldn’t provide. The bottom line: make Broadcom compete, at least in their mind. Show them you have leverage, and you’re far more likely to squeeze out a discount or concession.
When employing these tactics, always maintain a professional yet firm demeanor. Broadcom’s negotiators are trained to stick to their guns; your job is to find cracks in their stance using time pressure, authority, and alternatives.
When they realize you are well-prepared to push back (and possibly walk away), they are more inclined to cooperate.
5. Common Pitfalls in Discount Negotiations
When pursuing discounts and concessions with Broadcom, beware of a few pitfalls that can trap unwary buyers.
These are scenarios where you think you’ve won a concession, but you might be getting limited value or even incurring hidden costs:
- Unwanted Bundle “Discounts”: Broadcom might offer you a seemingly great discount, but only if you buy a larger bundle or additional products that you didn’t plan on. This can lead to paying for shelfware – licenses you don’t actually use. For example, you negotiate 20% off, but the catch is you must purchase the entire Cloud Foundation suite (including products your team doesn’t need). In the end, you’ve spent more overall, effectively negating the benefit of that 20% off. Don’t fall for false economies. Always evaluate the actual value of what you’re buying. A discount on an unwanted bundle is not a real win. It’s better to pay for what you need at a slightly higher unit price than to get a “deal” on a bloated package of which 30% sits idle. If Broadcom insists on a bundle, ensure that you can remove or swap out unused components, or that the price is adjusted to reflect only the value you receive.
- Overcommitting to Volumes: Another pitfall is committing to a larger volume or longer term than you can realistically consume, just to get a discount. Broadcom sales reps might dangle a higher discount tier if you agree to, say, 20% more licenses than your current deployment. It’s tempting to “buy extra” for the cheaper unit price, but if those licenses go unused, you’ve wasted money. Over-commitment can backfire: you end up with shelfware or locked into growth metrics that are hard to meet. Similarly, committing to a multi-year quantity that’s too high means you’ll pay for capacity you might never need. Always base your agreement on practical usage forecasts. If you stretch to reach a discount threshold, ensure you have genuine plans and a budget to utilize those licenses or services. Otherwise, the cost of over-buying will outweigh any percentage saved. Broadcom often does not allow downsizing or refunds if you over-purchase, so err on the side of realistic commitments. A slightly smaller deal that you fully use is better than a “mega deal” with wasted excess.
- Concessions with Hidden Costs: Read the fine print on any concession. Broadcom might agree to a special term but attach strings that reduce its value. For instance, they might offer a discount now but include an automatic higher renewal rate down the line (e.g., “this price is good for years 1-3, but year 4 will jump by 25%”). Or they’ll include a “must-renewal-or-penalty” clause, meaning the concession is void if you drop any product at renewal. Another example: “free” add-on products or services that are free only for the first year, with high maintenance costs in later years. Always ask: What happens after the concession period? Also be wary of any verbal promises – insist everything is documented in the contract. Broadcom’s agreements can be complex, and it’s easy to overlook a provision that claws back your hard-won concession. Avoid assuming that a concession is truly free; verify that there are no future obligations, fees, or lock-ins associated with it. If Broadcom offers, say, free extra support, confirm that it doesn’t require you to renew an entire bundle to keep that support going. Transparency is key: have every concession explicitly detailed in writing, and double-check renewal clauses to avoid being ambushed by hidden costs later.
By anticipating these pitfalls, you can negotiate with a clear understanding. It ensures that when you do win a concession or discount, it actually benefits your organization in the long run.
6. Negotiation Do’s and Don’ts
Finally, let’s distill some key dos and don’ts for negotiating Broadcom discounts and concessions.
Keep these in mind as guiding principles:
Do:
- Leverage your total volume – Aggregate demand across all departments or global business units to maximize your negotiating clout. Pushing for a global volume deal ensures Broadcom sees the full picture of your spend, which can unlock better discount tiers.
- Ask for value-added extras, not just price cuts – If the discount hits a wall, pivot to non-cash concessions (such as training credits, extra support, or flexible terms). Broadcom might say no to five more points off, but yes to something like free professional services. Every bit of value helps.
- Get it in writing – Ensure all promises are documented in the contract. If Broadcom’s team agrees to a discount, a special term, or a freebie, have it written into the order form or agreement. Verbal assurances mean nothing if they’re not in the signed deal.
Don’t:
- Assume Broadcom won’t negotiate – Don’t take the first quote as final. Broadcom may act tough, but with persistence (and a strong business case) you can move the needle. Going in with a defeatist attitude leaves money on the table.
- Focus only on the list price – A successful negotiation considers the whole picture, not just the percentage off the list. Consider the total cost of ownership and value, including support terms, future price protections, and included services. A narrow focus on the list price might cause you to overlook other negotiation levers.
- Overlook hidden costs or traps – Never ignore the details. Don’t celebrate a “win” until you’ve scrutinized the contract for any clauses that could undermine it. This means checking for automatic upticks, restrictive conditions, or bundled obligations that could erode your savings.
By following these dos and don’ts, you maintain a clear strategy and avoid common mistakes during Broadcom negotiations.
5 Tactical Recommendations
To wrap up, here are five tactical recommendations to secure the best possible outcome in your Broadcom discount negotiation:
- Structure deals to hit higher discount tiers. Proactively combine purchases (products, regions, years) into a single negotiation to reach thresholds that compel Broadcom to offer larger discounts.
- Always ask for concessions beyond pure price cuts. If the price won’t come down further, seek added value – such as free training, extended support, or flexible terms – that improves your deal’s worth without lowering the sticker price.
- Use quarter-end timing as leverage. Align your negotiation to Broadcom’s sales deadlines. The pressure on reps to close deals by quarter or year-end can translate into last-minute improvements in your terms if you’re ready to sign.
- Push for global volume aggregation across your enterprise. Coordinate across all your divisions and locations to negotiate as a single, unified customer. A unified, enterprise-wide deal will command more attention and a better rate than fragmented, smaller contracts.
- Escalate early if discounts stall at the rep level. Don’t linger in deadlocked talks. If you’re not getting movement, involve higher management (both yours and Broadcom’s). Taking the discussion up the chain can break through rigid positions and win exceptions that a frontline rep cannot grant.
By employing these tactics and approaches, you can approach Broadcom negotiations with confidence.
Even against a vendor known for saying “no,” a savvy customer with the right strategy can achieve meaningful discounts and valuable concessions – securing a Broadcom deal that protects both your budget and your business interests.
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