Broadcom Software Group cuts R&D to grow ‘strategic accounts’

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Broadcom Software Group — which is on the verge of being renamed VMware — slashed its R&D budget last year under President Tom Krause to better serve the priorities of its top accounts and less “to a broad range of customers to be aligned”.

“These companies that we bought accounted for about 17 percent (of revenue),” Krause said during Broadcom Software Group’s first investor day on November 9, 2021, in reference to the company’s acquisition of CA Technologies and Symantec’s enterprise security business. “We’re running at 14 percent. The discrepancy is only in the focused approach. Our priority is precisely those 600 strategic accounts. This allows us to focus our R&D resources around their priorities, so we are not as dependent on a wide range of customers.”

Broadcom Software was formed in 2021 as an entity within Broadcom and placed under Krause’s leadership. It consists of the combined assets of CA and Symantec’s business…



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