Broadcom made its first public comment in weeks on its plans for VMware, if the surprise $61 billion acquisition goes as planned, and prioritized retaining VMware engineers to preserve innovation capabilities. from the virtualization giant.
The outline of Broadcom’s plans appeared in a blog post published Wednesday by Broadcom Software President Tom Krause.
VMware is an iconic software company with a vibrant ecosystem. We don’t want to change that.
The message begins with flattery about Broadcom meeting with VMware customers “to tell them more about how this combination will bring them compelling benefits.”
These benefits center on “greater choice and flexibility to build, run, manage, connect, and protect large-scale traditional and modern applications in diverse and distributed environments.”
Krause’s definition of “choice” rests on the intention that Broadcom Software’s existing businesses – Symantec and CA – operate under the VMware name once the deal is done. VMware customers will therefore be able to choose Symantec and CA products.
VMware customers are, it must be said, free to make this choice today.
Krause added that the combination of VMware and Broadcom software “will help enterprises build, manage and secure a wide variety of applications – from mainframe to client server to cloud native via Kubernetes – and more securely deliver amazing user experiences on any device anywhere.”
This is a slightly stronger statement, as the combined Broadcom and VMware software will indeed have expertise across many platforms. But the message makes no mention of integration plans that could more elegantly tie together the portfolios of the combined companies.
The post states, “A key pillar of the combined company’s innovation roadmap will be retaining and supporting VMware’s engineering and R&D talent.”
Broadcom Software has previously said it prefers to focus R&D on the needs of its very large customers, and that this saves money because the biggest customers are also the stickiest and most lucrative.
He even went so far as to discourage small customers from persisting with his products – using price hikes and a cold shoulder to buyers and distribution partners to make it clear they can do better elsewhere.
The company has previously said VMware’s channel will do the heavy lifting for smaller customers, and Krause reaffirmed that plan.
“We recognize the central role that VMware’s close customer relationships play in its success. Broadcom wants to preserve and grow these relationships,” he wrote, adding “we will invest in both the direct sales force in all key verticals as well as in the partners who support a broader customer base.”
“VMware is an iconic software company with a vibrant ecosystem, including hyperscalers, systems integrators, and channel partners. We don’t want to change that, and in fact, we want to embrace those relationships.”
Before you get too hot and fuzzy, note that the post also covers pointing out that Broadcom Software hasn’t peeked inside VMware yet – so it can’t offer detailed plans.
“We approach the post-closing planning phase of the transaction process with an open mind, while learning from our previous acquisitions of CA and Symantec Enterprise,” Krause wrote. “This means that we will be working closely with VMware to learn more about their go-to-market, product portfolio, approach to innovation, engineering talent, partner network and, of course, their strong customer footprint.”
A reminder: when Broadcom Software acquired CA and Symantec, it made drastic reductions in headcount and sales and marketing expenses. As retained staff recount The register Broadcom Software is a fun and supportive place to work, they can’t deny that they have far fewer colleagues than before the acquisition of their previous employers.
These cuts may be why job sites like The Layoff and Blind have lately presented questions from people who have been offered jobs at VMware and wonder if the Broadcom Software takeover could make their terms unpleasantly short.
One element of Krause’s post that seems remarkable is its mention of delivering experiences on any device, anywhere. Your correspondent has encountered many comments questioning whether VMware’s end-user computing products are a good fit for Broadcom Software’s focus on infrastructure. Krause’s post might allay those doubts.
Overall, however, Krause’s post offers almost no specific information about how Broadcom Software plans to work with VMware.
The acquisition was announced on May 26, along with a 40-day shopping provision under which VMware could solicit competing offers. As of this writing, no such offers have emerged or been rumored. ®