If you operate in FinOps, and are part of an MSP, or work for an enterprise utilizing the cloud utilizing CloudHealth, you’re likely familiar with the latest updates on CloudHealth after its acquisition by Broadcom. Since 2018, CloudHealth has been closely tied to the term “acquired,” initially by VMware and now by Broadcom, creating an ongoing change cycle. Furthermore with the announcement of Arrow Electronics tapped to become sole global provider for CloudHealth, Broadcom’s moves are going to disrupt the industry.

However, clients and prospects are understandably cautious as climate uncertainty and instability grow around CloudHealth. This peak of potential disruption to cloud operations provides a unique opportunity for organizations to consider switching to a more reliable and forward-thinking Cloud Cost Optimization solution.

Why Now Is the Perfect Time to Make the Move 

While a detailed comparison of Digiusher and CloudHealth can be found at here, a brief snapshot is as below:

	CloudHealth (Broadcom)	Digiusher
Partner Program	Selective, High Requirements	Robust, Serves MSPs, Resellers and System Integrators
Pricing	Vague, Potential Increases, Cloud Taxes(Typically 3% of cloud expenses)	Transparent, Competitive, Option of Enterprise Unlimited Self-Hosted Offering for both customers and MSPs
Cloud Support	Delays in GCP & Azure Updates	Full Visibility Across AWS, GCP, Azure, Databricks, Kubernetes and Alibaba Cloud
Scalability for MSPs	Potential Disruptions	Efficient Management and Scaling
Cost Management Features	Basic	Real-time Anomaly Detection, Automated Savings Tracker
Customer Focus	Unclear after Acquisition	Proven Partner Program, Focuses on Customer Success

Understanding the Change

The Broadcom Advantage Partner Program replaced VMware’s partner programs after Broadcom acquired VMware on February 5, 2024 and Arrow Electronice became the sole global provider of CloudHealth. The program invites only select partners based on specific criteria. While a lot of partners might have been left out, we know that the foreseeable future to qualify would be a challenge as well as partners must demonstrate a minimum of $50,000 per month or $500,000 per year in VMware revenue to qualify for an invitation. Unfortunately, this criteria may exclude several MSPs catering to the SMB market.

Other standards partners must meet include:

1. Performance Metrics: Partners are likely evaluated based on historical performance, including sales volume, customer satisfaction scores, and overall business growth.
2. Technical Capabilities: Broadcom assesses technical proficiency, certifications, expertise, and the ability to support and implement solutions effectively.
3. Market Reach: Geographical coverage and market presence ensure Broadcom’s solutions reach a broad and diverse customer base.
4. Financial Stability: Partners’ financial health is critical for sustaining long-term relationships and investments.
5. Customer Base: Partners with substantial and loyal customer bases, especially large enterprises or high-value clients, will likely be favored.

These new standards align with Broadcom’s goals but fail to address the needs of its cloud clients and customers.

As Allen Skipper, SVP at Expedient, said,

“Since the acquisition of VMware by Broadcom, there’s just been a great deal of confusion and concern in the market. Companies are asking all sorts of questions like, ‘How much are costs increasing from VMware? ‘What’s this 27 SKUs down to three options that people are talking about? Do we have options to move to other providers or to other hypervisors?”

Ongoing Operational Shifts

The acquisition by Broadcom will cause notable internal restructuring at CloudHealth, resulting in service delivery and customer support disturbances. As Broadcom merges CloudHealth into its current operations, inefficiencies and delays are unavoidable. These operational adjustments may pose significant challenges for businesses dependent on smooth and continuous service delivery.

Pricing and Contract Adjustments

Unfortunately, Broadcom has been vague about pricing changes. With recent decisions, many existing VMware partners, particularly smaller providers,would be left in the dark about their future in the Broadcom program.

Exploring Cost-Effective Alternatives

As the financial landscape shifts, now is the ideal time for CloudHealth customers to consider more economical solutions. Look for:

1. Transparent and Flexible Pricing: Tailored to fit your organization’s unique needs, ensuring you pay only for what you need.
2. Digiusher: Offering competitive pricing, innovative features, and powerful ROI, including the option of self-hosted Enterprise Unlimited Subscription.

Delays in MSP Scalability

Due to this acquisition, disruptions impact the scalability of Managed Service Providers (MSPs) operations. Specifically, delays in processing updates for Google Cloud Platform (GCP) and Azure assets have been reported. These delays result in inefficiencies, extended troubleshooting times, and hinder strategic planning.

Exploring Alternative Solutions

This CloudHealth Broadcom Acquisition brings hesitation for MSPs as World Wide Technology CEO Jim Kavanaugh expressed: 

 “We would love to build a strategic partnership with VMware. Unfortunately, I’m not sure that’s what they have planned.”

Broadcom’s actions is likely to cause hesitation for MSPs. Exploring multiple FinOps tools can enhance your clients’ insights and capabilities. Digiusher supports MSPs and enterprises with:

1. Accurate Forecasting and Budgeting: Real-time data streams for smarter budgeting and cost savings.
2. Cost Visibility and Control: Efficiently understanding multi-cloud and Kubernetes spending including AWS, Azure, GCP, Kubernetes (both cloud and on-premise), Databricks and Alibaba Cloud.
3. Savings Recommendations: Real-time recommendations for cloud cost optimization.
4. Real-time Anomaly Detection and Alerts: Identifying irregular patterns and potential cost anomalies.
5. Automatic Savings Tracker: Effortlessly tracking and evaluating performance.
6. Multi-Tenant, Multi-Billing: Consolidating billing operations on a unified platform.

Navigating Your Future with Digiusher

With Arrow Electronics tapped to become sole global provider for CloudHealth, Broadcom’s moves haven’t delivered expected results for customers and partners. Digiusher, with a robust Partners Program, wants to be a part of your success. Let us help you migrate from CloudHealth and start benefiting from a solution that empowers MSPs to manage and scale their existing clients efficiently.