Broadcom Initiates Strategic Review for Two VMware Units Post $69 Billion Acquisition
U.S. chipmaker Broadcom plans to review strategic options for two business units within VMware i.e End-User Computing and Carbon Black.
U.S. chipmaker Broadcom is set to assess strategic options for two business units within VMware, as revealed in a leaked email from CEO Hock Tan to employees, reported by an company insider to Reuters.
The $69 billion acquisition of cloud-computing firm VMware by Broadcom concluded on Nov. 22, following regulatory approval from China. The units under review are End-User Computing and Carbon Black, according to a Reuters report.
VMware plans to continue to operate with a structure comprising Cloud Foundation, Tanzu, Software-Defined Edge and Application Networking and Security. Raghu Raghuram, VMware’s top executive, will serve as a technical advisor to CEO Tan.
Broadcom’s Regulatory Woes for VMware Acquisition
China’s State Administration for Market Regulation (SAMR) recently granted approval for Broadcom’s acquisition of VMware, marking a pivotal moment in the tech industry. However, SAMR had temporarily halted its probe from September 25 to November 17, extending beyond Broadcom’s desired closing date of October 30.
The delay had raised concerns about antitrust issues related to the deal, given VMware’s leadership in virtualization and Broadcom’s expertise in fibre channel host bus adapters (HBAs). The approval came with a stipulation that Broadcom ensures interoperability between VMware software and competing hardware, aligning with requirements from other global regulators.
Competitors such as Nutanix and Oxide are capitalizing on these developments, highlighting Broadcom’s track record of aggressive asset maximization and potential price hikes. They are slowly positioning themselves as viable alternatives to VMware, particularly as customers and employees express apprehensions about impending changes.
Broadcom’s strategic bet on VMware’s multi-cloud management capabilities indicates a focused approach. The commitment to channel partners signals an intention to support a diverse customer base.
However, as the tech landscape undergoes rapid evolution, VMware’s position faces challenges from emerging technologies and shifting customer preferences.
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.