Do you think Tanzu Labs will be affected by the layoffs (since Broadcom doesn't have a consulting arm and it's not redundant)? Or am I hoping too much...
25 replies (most recent on top)
Gone on day 2.
Being a Reliability Engineer at Tanzu must be incredibly stressful. You start out looking like a triathlete and end up looking like Uncle Fester.
Funny that the by far largest contributor to revenue of this division is the old Cloud Foundry, despite management’s desire to run away from it and pretend like it didn’t exist for oh so many years.
That is all that is likely to remain, a few fat and sticky TAS customers that write big checks for support. Just trim the employees to get the desired profit margin for TAS. Then sell off or cancel the rest of the zoo
This will be the new Hock Tan-zoo! All the animals suffer!
I thought it was Latin for “piece of shīt”
Tanzu is derived from a Japanese phrase meaning "lost forever."
Hmm, let’s see. A consulting part of the company that has employees “on the beach” sc--wing around with tech as if it is on the job training and not servicing customers.
Easy decision for Hock to make, get rid of the beach and consulting. It’s not even close to the biz model of Mr. Tan.
You should replace the Tanzu facility with a Burger King. At least you would have a positive cash flow.
Tanzu Intelligence
The jokes write themselves!
So VMware won the k8s war?
Think you may need a refresher in math and finance. $500M of revenue but a net loss of 25 cents on every dollar generated is not really a sustainable, desirable, effective business. The Pivotal business LOST a HALF A BILLION $ for Dell in just 3 years because it is a garbage business that didn't deliver enough value for clients so they would actually pay at least cost for the products and services rendered.
then tried to fight the losing CF war vs. Kubernetes
And then lost the k8s war as well.
Double failure!
Someone take the car keys away from these id--ts.
Consulting… really? I’m sure some govt agency that paid $300 million can get a warm body on site, otherwise, welcome to sending logs to /dev/null… I mean, /dev/India and telling partners, here you go, make it work.
Don’t worry, the Pivot’s egos will protect them as it generates a reality distortion field.
CLAP!
500m Y/Y is little revenue? Ignorance in this thread
Pivotal burned $500M in Dell Cash in the 3 years before MD forced Gelsinger to take it off his hands. It's in the public SEC filings... It was a mess financially and as I stated the only reason for the existence of the Pivotal Labs business was because they couldn't sell the SW for any value and needed to try and cover payroll. Pivotal pivoted...but as usual a half step because they always think they are the smartest in the room.... I don't doubt that Labs as a standalone P&L was making money as part of Pivotal but it all started back when Scott Aronson learned that the SW didn't have much value as a premium and this just went from bad to worse when they then tried to fight the losing CF war vs. Kubernetes. If Pivotal (incl Labs) was a standalone company without a deep pocket owner they would have gone under 20 times over.
As for Hock and Tanzu - yes he has spoken to it and we may disagree but I have a firm belief it is just to pump the tires on a sale / divestiture and to not further disrupt VMW business. I could be wrong and just may be, but Hock is a numbers guy and you look at the financials he intends to drive via VMware - you can't get those blended margins with a heavy services mix and you don't get great margins on services with snowflake projects like the ones Labs delivers. No chips on the table on my part in this whole thing, just saying as I see it and wish everyone over there the best.
Reorg today has some customer success teams from elsewhere now reporting into Tanzu
Post ID: @1per+1o0aBAMq
From email within Tanzu:
"With that, I am excited to share that the CloudHealth and Observability Sales and SE teams will be moving to the Tanzu Field Organization, establishing a new Tanzu Intelligence Specialist group led by Nick Venables. This team’s charter will be to cement Aria as the global standard for Cloud Optimization.
Additionally, everyone in CXS (Customer Success, Professional Services, Global Support) and Renewals currently supporting Aria Cost (formerly CloudHealth) and Aria Operations for Application (formerly Tanzu Observability) are transitioning to the Tanzu CXS organization led by Edward Hieatt. Please note that VMware Aria for VMware Clouds (formerly vRealize) CXS is NOT moving and remains under John Sabino's CXS organization."
Post ID: @1nss+1o0aBAMq:
Tanzu reorg announced today. Not sure what this means for them.
Was there an email sent out or a meeting? Or was it just kept high level for now?
"Pivotal was burning cash because nobody felt there was a legit price justification for Cloud Foundry "Enterprise" vs. opensource because there wasn't.... so the business leaders tried to find a way to actually make some revenue and cover expenses - et voila, Pivotal (er... Tanzu) Labs... Still couldn't make a buck so that should tell you something..."
Say what you will about the rest of the post—right or wrong—but this poster is off by 25 years on the history of Pivotal Labs, and (depending on how you read the post) wrong on Pivotal Labs financials.
Hock Tan has spoken privately and publicly about his support for Tanzu and (in specific examples) Tanzu Labs. If we believe him, this says the most likely case is that Tanzu Labs survives the acquisition, and is either kept or spun out later on.
Tanzu reorg announced today. Not sure what this means for them.
The public sector side to Tanzu Labs may persistent. As long as folks are billing in a profitable long term contract, shouldn't get cut for awhile.
Tanzu labs is a bunch of smart (arrogant) people thinking they are special and doing snowflake projects that don't drive any at scale VMW adoption. They originated not wanting anything to do with VMware and all on the Cloud Foundry/Spring train and haven't really changed. Never wanted to be in VMware via the Pivotal acquisition and repeatedly made that clear these past years... The irony of the whole thing is years ago, Pivotal was burning cash because nobody felt there was a legit price justification for Cloud Foundry "Enterprise" vs. opensource because there wasn't.... so the business leaders tried to find a way to actually make some revenue and cover expenses - et voila, Pivotal (er... Tanzu) Labs... Still couldn't make a buck so that should tell you something...
Today, Snake-oil salesmen trying to trick you with the buddy system dev (2x the cost, same timeline and all onshore...) is DOA with ChatGPT and all the co-pilot development tools available now. It's Game Over for the leaders over there and good riddance.
Hock will package Tanzu on a container ship and have it sail the high seas indefinitely.
Hmmm, let’s see, paying $150k or more a year for glorified consultants. Broadcom is not a consulting a shop. All that is outsourced. Welcome to meeting new financial goals the Hock way.
Toast. They are toast.
I think they will layoff all redundant positions, trim sales, and reduce fluff engineering staff. Then I think they will try and package whatever they can (Carbon black most certainly) and sell those BU’s off to recoup cash and reduce headcount at the same time.
lol, not only tanzu lab, but the whole tanzu thing will be eliminated on day 0, because it brings little revenue, even pitiful margin. So, go figure.