Re: Brilliant strategy?
Except they have basically no chance of actually getting that money.
When you increase prices that much, everyone leaves as fast as possible. Broadcom appears to be betting that it will take long enough for them to recover the acquisition costs.
It won't, because they've raised the price too far. Everyone knows you boil the frog slowly!
If you increase my costs by $200,000pa, then it is cheaper for me to hire someone permanently to deal with any limitations of an alternative than to pay the license fee. I'll save in the first quarter.
If you increase my costs by $50,000pa, then it is probably cheaper for me to pay a consultant to transition, as I'll be saving in a couple of years.
Of course, the execs who authorised all this will have already banked their bonuses and left. It does appear that the larger the corporation the shorter term its behaviour.