Guide to Broadcom & VMware changes 2024

Please note this article focuses on the “traditional” VMware products and not the End User Computing (EUC) and security divisions. The EUC Computing Division was acquired by private equity firm KKR for approximately $4 billion in February 2024.

Publisher M&A activity

Whenever software publishers go through merger & acquisition activity, there are typically major changes as the new company seeks to reduce costs, increase profitability, and align new products with their existing portfolio. With the Broadcom acquisition of VMware we have seen:

• A “Go to Market” strategy focusing on the highest revenue generating clients with the rest being serviced by the IT channel of resellers and service providers
• Change to licence metrics such as processor based to core based
• Consolidation of stock keeping units (SKUs) to bundle several products into a limited number of SKUs
• A move to subscription licensing
• A shakeup of the partner model and available purchase routes for customers

These changes are combining to leave customer organisations with uncertainty, eye watering price increases, and a short window of time in which to act...

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