Blog
24/07/2024
Guide to Broadcom & VMware changes 2024
Broadcom & VMware: a new era & what this means for you
November 2023 saw Broadcom complete its $69 billion (including $8 billion of debt) acquisition of VMware and ALREADY there have been several significant changes to the VMware product line-up and ecosystem.
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...
Click on the link below to download this guide, as well as other useful and informative material and whitepapers from Synyega.
