Broadcom seeks to dominate the silicon and software market with the acquisition of VMware

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Broadcom’s planned acquisition of VMware is well known by now, but what does it mean for VMware’s future? VMware CEO Raghu Raghuram shed light on VMware Explore in Las Vegas earlier this month.

First of all, Raghuram explained, that the acquisition has been cleared by both companies and is expected to proceed. At present, it is subject to regulatory approval and the companies, as well as Raghuram and Broadcom Chairman and CEO Hock Tan, are awaiting the outcome.

Absent any material objections or impediments, the acquisition will not proceed until the next period of Broadcom’s fiscal year, which runs from November through October. Thus, the acquisition will be completed no earlier than November 1, 2022, but it could be no later than October 31, 2023.

However, logistics aside, what does that mean? Some concerns have surfaced online that Broadcom will tie VMware to Broadcom hardware and remove its accessibility and availability on other platforms.





That couldn’t be further from the truth, Raghuram said. “Together, Broadcom and VMware will help businesses accelerate innovation and scale,” he said.

It won’t be from a synergy acquisition, however, “but for Broadcom to become a leader in software, as much as they are a leader in silicon,” Raghuram said.

In fact, Broadcom’s journey to becoming a software market leader began with its acquisitions of CA and Symantec, and the intent of the VMware acquisition will be to consolidate these software operations under VMware.

This means Broadcom “will have market leadership in semiconductors and software,” he said, adding that “both are agnostic to the ecosystems below. Both companies deliver everywhere. None does not sell systems or run cloud”.

In fact, “VMware was once owned by a server company,” Raghuram noted, speaking of his time under Dell. “So why would it be any different this time around? Our past history should give some reassurance.”

Raghuram also noted that VMware’s partnerships with other organizations will continue. For example, “a good portion of VMware customers store data on-premises and use NetApp to move data more easily. A big part of moving apps is moving data, and our partnership with NetApp aims to accelerate that process. »

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