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Broadcom’s acquisition of VMware was its third major enterprise software buy in the past few years. Photo: Bloomberg via Getty Images broadcomvmware acquisitions sponsored content Why companies need to embrace the digital transformation of industries. Qualcomm’s chief sustainability officer on how companies can view digital transformation as a way not only towards growth, but also towards establishing and meeting environmental, societal and governance goals.
This article says that VMware was bought by Broadcom because it’s cheaper than other companies. But I think this is wrong because VMware is an independent company now. And it’s not cheap at all.
Broadcom’s $61B acquisition of VMware will give them more enterprise software clout and a recurring revenue stream. VMware’s stock price will rise as a result of this deal. But the deal may also stabilize VMware’s business, and help shore up a company that’s been underperforming lately.
The deal was officially announced on Thursday morning. Several days ago, the deal leaked out. The company paid $61 billion in cash and stock. The deal included Broadcom Software Group (BSG) which contained previous acquisitions CA Technologies and Symatc. The deal also folded Broadcom into a new organization called VMware.
VMware’s acquisition doesn’t come as a total surprise because they’ve been declining for a while now. Their stock price has dropped more than 50 percent since 2012. This company needs to be acquired by someone who can help them grow.
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 & Security. But Under Raghu Raghuram, Who Will Mark His One Year Anniversary Next Week On June 1st, it has Continued to Reposition Around Helping Customers Wadopt Multicloud Approaches & Hybrid Work.
VMware’s vSphere virtualization software runs over 80 million workloads in hundreds of thousands of data centers. After years of downplaying the threat of cloud computing, it strikes a key “preferred public cloud provider” agreement with Amazon Web Services (AWS) to jointly engineer a vSphere-based cloud service running over AWS, and VMware on Amazon Web Service (AWS) launches in 2017.
Managed services run software stacks directly on bare metal infrastructure. This allows them to be more flexible than traditional virtualization solutions.
Raghuram told Protocol that VMware’s separation from DELL has positioned the company to become the Switzerland of the new multiclouddomain. VMware now partners not only with cloud andsoftware vendors but infrastructureproviders that include DELLcompetitors such as HP and Lenovo.” VMware also hasbeen making a bigger push into KUBERNETES andcontainers with its Tanzuportfolio ofproducts thathelps customersmodernizetheirapplications.
“VMware’s transition from selling licensed software products to data center operators has been choppy”.
