On October 30, 2023, Broadcom’s fiscal year ended, marking the anticipated completion of its $61 billion acquisition of VMware. Shareholders had until October 23 to decide on accepting stock or cash, with 96% choosing stock. Despite gaining South Korea’s conditional approval, China delayed its approval until November 21, potentially in response to US chip sanctions. The deal is now set to close on November 22, before expiring on November 26.
Broadcom has not made many official announcements, except for renaming VMware and promising no price increases. Rumors of job openings and layoffs at VMware have surfaced, raising concerns about the future post-acquisition. Previous acquisitions by VMware, like CA and Symantec, saw reductions in customer support and innovation, hinting at potential challenges ahead.
VMware customers may face revenue stream challenges as competitors emerge, potentially leading to downsizing and reduced innovation. Product rationalization efforts post-acquisition aim to meet revenue targets but could impact product offerings. vSAN’s HCI dominance may face competition, while the future of Horizon and Workspace ONE remains uncertain, opening doors for competitors like Microsoft.
Carbon Black’s endpoint protection tools complement Symantec’s offerings, but areas for improvement exist in security solutions. The completion of the deal may not lead to immediate disruptions, given VMware‘s integration in critical applications. However, changes may unfold in the next six months as Broadcom navigates its new role in the cloud software industry.
Expectations post-acquisition include possible price increases, reduced support quality, and a potentially weakened VMware value proposition. The future of the company remains uncertain, with potential impacts on employees, product offerings, and market competition. Users might see changes in VMware‘s business strategies and overall direction under Broadcom’s ownership.
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https://www.forrester.com/blogs/VMware-customers-brace-for-impact/