Broadcom begins strategic review of two VMware devices following $69 billion acquisition
Posted: Nov 30, 2023 3:20 AM Updated: Nov 30, 2023 3:20 AM
Correction and fact check date: November 30, 2023, 3:20 AM
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US chipmaker Broadcom plans to review strategic options for two business units within VMware: End-User Computing and Carbon Black.
US chipmaker Broadcom plans to evaluate strategic options for two divisions within VMware, a leaked email from CEO Hock Tan to employees revealed, a company insider reported to Reuters.
Broadcom’s $69 billion acquisition of cloud computing company VMware was completed on November 22, subject to regulatory approval in China. According to a Reuters report, the devices being considered are End-User Computing and Carbon Black.
VMware plans to continue operating with an architecture comprised of Cloud Foundation, Tanzu, Software-Defined Edge, Application Networking, and Security. VMware Chief Executive Officer Raghu Raghuram will serve as a technical advisor to CEO Tan.
China’s State Administration for Market Regulation (SAMR) recently approved Broadcom’s acquisition of VMware, marking a significant moment for the technology industry. However, SAMR temporarily suspended the investigation from September 25 to November 17, extending it beyond Broadcom’s desired end date of October 30.
Given VMware’s leadership in virtualization and Broadcom’s expertise in Fiber Channel host bus adapters (HBAs), the delay has raised concerns about antitrust issues related to the deal. The approval comes with provisions requiring Broadcom to ensure interoperability between VMware software and competing hardware, in line with requirements from other global regulators.
Competitors such as Nutanix and Oxide are leveraging these developments to highlight Broadcom’s track record of aggressive asset maximization and potential price increases. They are slowly establishing themselves as a viable alternative to VMware, especially as customers and employees voice concerns about the impending changes.
Broadcom’s strategic investment in VMware’s multi-cloud management capabilities represents a focused approach. Our commitment to our channel partners signals our intent to support a diverse customer base.
However, as the technology landscape evolves rapidly, VMware’s position is challenged by new technologies and changing customer preferences.
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Victor is the Managing Technology Editor/Writer at Metaverse Post and covers artificial intelligence, cryptography, data science, metaverse, and cybersecurity within the enterprise space. He boasts of five years of media and AI experience working at renowned media outlets such as VentureBeat, DatatechVibe, and Analytics India Magazine. Having worked as a media mentor at prestigious universities such as Oxford and USC, and holding a Master’s degree in Data Science and Analytics, Victor is committed to keeping up with new trends. He provides readers with the latest and most insightful stories from the world of technology and Web3.
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victor day
Victor is the Managing Technology Editor/Writer at Metaverse Post and covers artificial intelligence, cryptography, data science, metaverse, and cybersecurity within the enterprise space. He boasts of five years of media and AI experience working at renowned media outlets such as VentureBeat, DatatechVibe, and Analytics India Magazine. Having worked as a media mentor at prestigious universities such as Oxford and USC, and holding a Master’s degree in Data Science and Analytics, Victor is committed to keeping up with new trends. He provides readers with the latest and most insightful stories from the world of technology and Web3.