Broadcom CEO Hock Tan acknowledges the discomfort caused by changes post-acquisition of VMware, but emphasizes that the changes were made to innovate faster, meet customer needs more effectively, and improve business operations. Tan expressed optimism that the changes would lead to increased profitability and better market opportunities for partners.
In the first 100 days since the acquisition, Tan highlighted the rapid pace of change and the efforts to simplify doing business with Broadcom. Despite concerns about rising technology costs, he celebrated the low cost of VMware Cloud Foundation and highlighted its modernized platform for cloud infrastructure. Tan mentioned a significant reduction in subscription prices and an increase in support service levels to benefit more customers.
Yves Sandfort, CEO of comdivision, shared a positive outlook after meeting with company management and expressed determination to continue working with Broadcom. Sandfort noted a strong customer focus under Broadcom’s leadership compared to the old VMware, emphasizing the importance of letting go of the past and focusing on the future.
Under Broadcom, VMware Cloud Foundation integrates various VMware products into a unified platform for cloud infrastructure with fully software-defined features. Tan stressed the importance of simplifying IT support to accelerate business operations and ensure security for customers.
Despite spending 18 months preparing for the acquisition, Tan acknowledged that there was still much work to be done to create more value for customers. Broadcom committed to simplifying its hardware and software portfolio, investing $1 billion in VMware research and development.
The acquisition of VMware by Broadcom for $61 billion plus $8 billion in debt was completed in November 2023. Broadcom announced plans to spin off VMware‘s End User Computing business and sell the Carbon Black business division. Tan expressed confidence in the future of VMware under Broadcom and hinted at more developments to come.
Overall, the first 100 days have been characterized by significant changes and adjustments aimed at enhancing customer value and increasing market opportunities for partners. Tan urged stakeholders to stay tuned for more updates and developments in the future.
Article Source
https://www.crn.com/news/virtualization/2024/broadcom-ceo-hock-tan-calls-VMware-s-first-100-days-a-strong-start
