Latest News

Big tech greed

Written by Barry Alston, Director of Business Development (Public Sector), Claritas Solutions  

At the end of last year, Broadcom completed its $69bn acquisition of cloud-computing firm, VMware, making it one of the biggest deals in recent times and I predict it will cause huge issues for many businesses who are currently blissfully unaware.

VMWare was a tool of choice historically and is prevalent in many businesses and intrinsic to their IT infrastructure. The virtualisation it brought was highly appealing as it carried many benefits like flexibility for accommodating business changes, fast route to market with little or no capital investment, people or expertise needed, and arguably over the past decade, has transformed the way we work.

 

However following the acquisition, it is expected that Broadware will end perpetual licences and move to a subscription-based model. This will impact many businesses especially those that have invested huge amounts in virtualising servers and can not pivot quickly enough. Much software is only available as vSphere-based virtual appliances so the impact on business’ IT desktop, server, cloud and supplier management strategies will be huge.

For IT leaders, this also has an impact on their existing supplier relationships with VMware partners, who would have previously supplied the software licences.

 

Moving to a subscription-based model means businesses will have to spend huge amounts on licensing and seemingly have no other options.

The subscription model seems to be a trend to maximise profit. I’d question if this is a fair and equitable way of doing things.

I work for Claritas Solutions, a Wetherby-based IT company and what I have seen is it’s increasingly difficult for anyone to host anything outside the USA. Businesses are at the behest of big tech who control the cloud and are at their mercy when they make decisions such as changing the way they charge for them.

 

At Claritas Solutions we have UK-based data centres and none of our data or traffic is routed overseas. Using a UK-based cloud provider, like ours, is one way to dodge this bullet.  Offering a secure, sovereign, and sustainable hyperscale cloud will end the foreign dominance of the UK cloud market and bring back the cloud development and R&D associated with it to the UK. We think this is a core skill for the UK, and we want to enable a UK ecosystem for cloud development as well as putting in place guarantees for knowing where and who is accessing your data.

So, I suggest that business leaders take a long hard look at what this acquisition means for their companies not just now but in future.

If Broadcom moves to a subscription model, what this smacks of to me is US big tech companies squeezing the entire planet for money. If we follow this to its end, there are going to be a few individuals who are the only ones able to dictate what happens to our IT across the world. They are getting rich at our expense.

This may have seemed like a simple ‘one company acquires another company’ news story but there are larger forces at work and I believe customers need to question what such big tech greed means for our society and planet as a whole.

 

About the author

Barry Alston is the Director of Business Development (Public Sector) at Claritas Solutions.