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Broadcom’s acquisition of VMware was its third major enterprise software buyout in the past few years. Photo: DavidPaulMorris/Getty Images Broadcom’s acquisition of VMware was its third major enterprise-software buyout in the past three years.
VMware was bought by Broadcom, but now it’s being sold off as part of a cost-cutting move. Executives were excited about the prospect of being independent. But now it’s back to being a cog in a conglomerate, and they’re not happy.
Broadcom’s $61B acquisition of VMware will give Broadcom more enterprise software clout and revenue. But the immediate benefits are less clear. Once the dust settles, the Broadcom-VMware deal could provide stability for both companies.
The deal was officially announced Thursday morning, several days later than the leak. The company paid $61 billion in cash and stock for VMware. The company also folded the Broadcom Software Group into a new organization called VMWare.
We think together, Broadcom’s software assets for the distributed enterprises can seamlessly complement and augment VMWare’s multi cloud offerings in the areas of operations management, value stream and devops management, and security to address the entire application lifecycle.
VMware’s acquisition comes as a total surprise. VMware has been a substantial underdog for a long time. Prior to this week, the stock was down 50% since 2009. VM ware has been an under performer for a long time. This week, the stock dropped another 10%.
VMware completed its spinoff from DELL Technologies last November. The Company is known for its Virtualization Software, which played a key Role in Self-Managed Data Centers for Decades Around Compute, Storage, Networking and Security. But Under Raghu Raghuam, Who Will Mark His One Year Anniversary Next Week On June 1st, It Has Continued To Reposition Around Helping Customers Wadopt Multicloud Approaches And Hybrid Work.
VMware’s vSphere virtualization software runs more than 80 million workload instances in the data centers of over 300,000 customers. After years of downplaying the threat of cloud computing, VMware struck a key preferred public cloud provider partnership with Amazon Web Services (AWS) to jointly engineer a vSPhere-based cloud service running in the data center of AWS, and VMware on Amazon Web Service (VMware on AWS) was initially launched in 2017.
Managed services run on bare metal servers. This means they are very expensive. They also require lots of maintenance.
Raghuram told Protocol that VMware was positioning itself to be Switzerland of the new multiclouddomain. VMware has been partnering with cloud and software companies, and now wants to work with infrastructure providers too. VMware Tanzu is helping customers modernize their applications by using containers and Kubernetes.