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Comment by fragmede | Hacker News Reader

Yeah but how does it make any business sense for Broadcom to be doing this? They could have raised prices 100% and fewer people would flee and they'd make more money overall. 1,000% price raises are just plain extortion.

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If the action of a company doesn't seem to make sense, ask yourself: could you imagine an incentive structure within the company that could lead to such actions?

Buy, extract as much money as possible, then dump the carcass. I'm sure they did the math on this.

This is the classic "golden goose" strategy. Why wait around all week for steady returns when you can just rip the thing open and see what you can get for the internal organs.

Whenever companies make moves that people don't like, the comments go on as if they haven't thought any of it through

They knew they would lose customers, they've factored that into their business plan

Considering half the comments are “Proxmox” and “Virtualbox/Parallels” are so much better anyway, I’m guessing most commenters in here are extremely naive and not aware of the IT landscape.

The issues of large scale infrastructure are so different to running a glorified NAS at home

Mathematically if they can extract say 1.5 times the money they used to buy something in 3 years. It is a good deal for them. And even better if they can extract more money beyond those 3 years and then sell what is still left to reclaiming bit more money. Making 15% a year on investment and it fully paying back is not bad move.

Raise prices. Layoff staff. Less support. = more cash flow (Short term).

In order to sell?, spinoff?, or use the cash to finance something else?

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