How Bad is the VMware Merger?
All indications point to negative impact for customers. Yet, there's potential for partners.
If Broadcom’s CEO is correct, Broadcom investors will enjoy $8B in EBITDA by 2023. But what about customers? What can they expect from this merger? In a word, nothing.
VMware has made some pretty big promises over the past few years. As organizations adopt cloud-native and public cloud workloads alongside on-premises workloads, VMware has promised to be the one control plane to manage all infrastructure platforms.
It is a severe problem for IT decision makers as they wrestle with how to spread an already thin workforce thinner. Being acquired by Broadcom essentially means VMware is giving up on the Cross Cloud mission. They have failed.
So, what does a PE play look like for VMware customers? Wikibon’s Dave Valente did some great analysis on the merger. The Register also had some intelligent analysis. But unfortunately, I haven’t been able to find anything pointing to positives for existing VMware customers.
I talked with Rob Hershfeld about the potential of partnering with VMware/Broadcom to create custom solutions built with vSphere. Think if Nutanix was able to build HCI around an embedded vSphere?
In short, less innovation, smaller customer focus, fewer products, and higher costs but opportunities for the industry at large.
References:
Brian Madden’s massive takedown of the merger.
https://www.linkedin.com/pulse/brian-maddens-brutal-unfiltered-thoughts-broadcom-vmware-brian-madden/
Dave’s Analysis
https://wikibon.com/breaking-analysis-broadcom-taming-the-vmware-beast/
The Register’s Post
https://wikibon.com/breaking-analysis-broadcom-taming-the-vmware-beast/
Twitter Spaces Conversation with Chris Evans & Rob Hershfeld (Audio starts 3-mins in)
https://twitter.com/i/spaces/1YpJkZYXMWoGj