Philip Crocker’s Post

Giants in the tech space are trying to consolidate this constantly evolving industry – the latest move coming from the US chipmaker Broadcom. Our M&A Analysts Lala Samoiliuk, Yit Tam, Kanishk Toshniwal, Amit John and Davit Harutyunyan have written about Broadcom’s $69 Billion Acquisition of VMware under the guidance of Mitchell Sim and Vasileios Vogiatzis. We invite you to read this report to gain insight into the details and reasonings behind the largest transaction of this year. Click the document to read the full report and share your thoughts in the comments.

In this 58-second video, The Six Five asks Hock Tan of Broadcom one question. "On the hardware side, will there be integration with the VMware hybrid cloud or multi-cloud products?" His answer is astonishing. He says no. He says that virtualization should be hardware agnostic. There is a diversity of hardware in the data center and virtualization should run on as many of it as possible. This might have been a good enough answer 25 years ago when virtualization was emerging. As long as 10 years ago Facebook and Amazon were getting custom chips made and putting them in their switches and routers to get a performance advantage as well as a cooling, and cost advantage. Meta gets chips from Broadcom now and builds their router. They are one of Broadcom's biggest customers. Apple is another of their biggest customers for custom chips. I guess VMware won't be. I used to be in IT. I managed servers. I was concerned with server performance. Servers back then had one CPU with one core. You were lucky to have one VM run on them. Now they have many CPUs each with many cores. You can run many virtual machines on them. If I found that one server gave me a big advantage over another I'd have bought it. The top hardware vendors (HPE, DELL, Lenovo) include VMware virtualization as an installable option on their servers. Some of them took this off, I heard, due to the uncertain pricing situation with Broadcom. The VMware hybrid cloud and multi-cloud products include VCF, Edge Compute, and SD-WAN. VCF includes server virtualization products. The other products are software stacks. They run on common hardware. They were orderable on Dell. Sure, customers want a choice of hardware and don't want to be locked in, however, if they had the option to get this software installed as an appliance on fast hardware with a custom chip from Broadcom they would probably be all over it. Security software has come pre-installed on an appliance for decades (Sonicwall, Bluecoat, Palo Alto, Fortigate). If you think about it the operating systems in routers and switches (Cisco, Juniper, Arista) are software running on custom hardware. Some of them have made white box versions of their OS, so it works both ways. So in one way, he's right, you don't want to lock out a customer's choice of hardware, but on the other hand, you want your software to have a performance advantage over the competitors by offering it on hardware with custom chips. If Broadcom can make chips for Meta and Apple why can't they make chips for VMware? #broadcom #vmware, #security #sdwan #sase #virtualization #cisco #juniper

Significant Development in the Technological Sphere: Broadcom Acquires VMware The technological sector witnesses a crucial shift as China's market regulator gives a green light to Broadcom's takeover of VMware, after a suspenseful two-month hiatus. This industry-changing move triggers notable ripple effects. Concerns of looming price wars are escalating, whilst employees anticipate the eventual impact on their status. As an experienced professional in the technological domain, I have observed that such strategic acquisitions often lead to a profound transformation in the industry landscape, underscoring the primacy of adaptability in this dynamic field. For an in-depth analysis of this development and its potential implications, please refer to the following article: https://lnkd.in/dr9bwpGd

Broadcom received approval for a merger with VMWare. And they celebrated by laying off 1300 employees. The 2023 tech bloodbath continues... ----- Reuters: "Broadcom to lay off 1,300 VMware employees following takeover (November 30, 2023) Nov 30 (Reuters) - Chipmaker Broadcom (AVGO.O) will lay off about 1,300 VMware employees in California following its acquisition of the cloud-computing firm, Bloomberg News reported on Thursday. Broadcom did not immediately respond to a Reuters request for comment. The chipmaker will also review strategic options for two business units of VMware, Insider had reported on Wednesday, citing a leaked email from CEO Hock Tan to employees. Broadcom closed its $69 billion acquisition of VMware on Nov. 22 after receiving regulatory approval from China. Reuters: https://lnkd.in/gBTy-MYW #semiconductors #cloud #broadcom #vmware #techlayoffs #mna #mergersandacquisitions

Broadcom is running their play with VMware. Decent read from WSJ below and feelings aside, this purge will cause some chaos and generate some opportunity in the marketplace. If you need help understanding how this effects your business or your clients, Quest is reaching out to our partners and customers to discuss the evolving situation and help provide guidance. #howcanwehelp #channelpartners #trustedadvisor

🌟 Significant changes are happening at VMware following the Broadcom acquisition. What impacts might these have on your business? Learn more here: Read the full article. https://zurl.co/C6y2 👉 At ProfitComm, we are keeping a close eye on these developments to better assist you in navigating this new landscape. Whether you are considering continuing with VMware or exploring other robust options, we are here to provide the insights and support you need to make informed decisions for your infrastructure. 💬 Have questions or need advice? Feel free to reach out to us! #VMware #Broadcom #TechNews #ProfitComm #ITConsulting

VMware's proposed takeover by Broadcom met with a mixed partner reaction from the off. But following an 11th hour delay (apparently caused by China withholding consent), the overriding emotion at this news may well be relief for many - being stuck in limbo was the worst option of all. If you are a VMware partner, please let me know how you feel now it's a done (or at least pre-done) deal, and what you need to hear from the new owner.... https://lnkd.in/eJWuecRe

Any acquisition stirs up feelings of fear, uncertainty and anxiety. The Broadcom acquisition of VMware is certainly no different. Talking to our customers, being innately familiar with both the VMware technology and alternatives, we understand these concerns deeply. The top concerns we are hearing when we speak with our customers' are: 1️⃣ How will Broadcom's acquisition of VMware force changes in our current business operations and IT infrastructure? 👉🏽 Customers have expressed concern about mandatory transitions or upgrades that could disrupt their existing systems and processes and how potential price rises are having a flow on impact on service delivery to their own customers 2️⃣ How will Broadcom's acquisition affect the quality of VMware's customer support? 👉🏽 Given the historical decline in support quality following Broadcom's previous acquisitions, customers are worried about future service levels. 3️⃣ Should we expect significant price increases for VMware products under Broadcom's ownership? 👉🏽 Concerns arise from Broadcom's pattern of raising prices post-acquisition to recover their investment costs impacting budgets, future projects and strategy. However, change is constant in technology, and while it brings challenges, it also offers new opportunities for growth and innovation. Our commitment is to stand by our customers every step of the way. We listen attentively, engage openly, and strive to transform apprehension into understanding and confidence. By providing clear insights and viable options, we help demystify the complexities of such transitions. Reach out to our team to start a conversation about what these changes mean for you https://hubs.ly/Q02v-0760 #TechAcquisition #VMware #Broadcom #ITInfrastructure #DiscoverQirx Nick Winch Matthew Hadfield Tony Macintyre Justin Gilmore Fabian Thongbai Shelly Duncan Tom Courtney Qirx Pty Ltd

🚀 Exciting news! Broadcom is set to finalize its $69B acquisition of VMware on November 22, after obtaining approval from Chinese regulators. However, new restrictions have been added. Stay tuned for more updates on this game-changing deal! #Broadcom #VMware #Acquisition #ChineseRegulators

Beginning today, VMware will operate as VMware by Broadcom. Embarking on a New Chapter: VMware Transforms into VMware by Broadcom! 🌟 Brace yourselves for the thrilling news: Broadcom has successfully sealed the deal with a remarkable $61 billion acquisition of VMware. This cash-and-stock agreement, initiated in May 2022, marks the beginning of an extraordinary journey. Not only does Broadcom take the helm, but it also shoulders $8 billion of VMware's net debt. 🚀 Let the era of innovation and collaboration unfold! #BroadcomMagic #VMwareEvolution #VMWareAcquisition ✨