<instructions>Your goal is to analyze the following comment and estimate how highly it will be upvoted by the Hacker News community.</instructions><comment><author>dbspin</author><text>Also pretty much guarantees flight of your former customer base to close compliments - who then have improved revenue to bring their products closer in alignment to yours. You&amp;#x27;d better have a hell of a moat to follow this strategy.</text><parent_chain><item><author>pmx</author><text>This massively increases risk too, right? Pinning all your revenue on a much smaller customer base means losing one or two of them has a huge impact!</text></item><item><author>helsinkiandrew</author><text>&amp;gt; Steve McDowell, chief analyst at NAND research, told The Register that VMware by Broadcom is “laser focused on high-revenue, high-margin business” and has priced its wares “just below the pain threshold for customers they care about.”&lt;p&gt;If you hike your prices by 10-15x, you only need 6-10% of customers to stay to maintain your revenue, reduce costs and massively increase profit margins!</text></item></parent_chain></comment><story><title>It looks a lot like VMware just lost a 24,000-VM customer</title><url>https://www.theregister.com/2024/05/22/computershare_vm_migration_project/</url></story>
<instructions>Your goal is to analyze the following comment and estimate how highly it will be upvoted by the Hacker News community.</instructions><comment><author>alephnerd</author><text>Broadcom makes $35B a year in revenue.&lt;p&gt;VMWare made at most $13.4B.&lt;p&gt;Even with severe churn, VMWare would make around $12.8-13B.&lt;p&gt;VMWare is just a BU now, not a company, and the economics of managing &amp;quot;just another product line&amp;quot; is different from a company with a flagship product&lt;p&gt;As I&amp;#x27;ve mentioned before on HN, the math is different and it makes sense to up prices and only concentrate on F1000s at that size.&lt;p&gt;&amp;gt; Pinning all your revenue on a much smaller customer base means losing one or two of them has a huge impact&lt;p&gt;Large customers are sticky. You can&amp;#x27;t migrate your hypervisor or cloud provider overnight. These are multi-year projects.&lt;p&gt;Also, it&amp;#x27;s better to target a smaller base of high paying customers instead of a large base of low paying customers because every sales motion and support ticket is an opportunity cost and a financial cost.</text><parent_chain><item><author>pmx</author><text>This massively increases risk too, right? Pinning all your revenue on a much smaller customer base means losing one or two of them has a huge impact!</text></item><item><author>helsinkiandrew</author><text>&amp;gt; Steve McDowell, chief analyst at NAND research, told The Register that VMware by Broadcom is “laser focused on high-revenue, high-margin business” and has priced its wares “just below the pain threshold for customers they care about.”&lt;p&gt;If you hike your prices by 10-15x, you only need 6-10% of customers to stay to maintain your revenue, reduce costs and massively increase profit margins!</text></item></parent_chain></comment><story><title>It looks a lot like VMware just lost a 24,000-VM customer</title><url>https://www.theregister.com/2024/05/22/computershare_vm_migration_project/</url></story>