Broadcom’s VMware acquisition raises concerns


Chip powerhouse Broadcom recently announced its intention to acquire virtualization pioneer VMware for $61 billion. Given Broadcom’s less-than-stellar track record with previous acquisitions (CA Technologies in 2018 and Symantec in 2019), VMware’s enterprise customers are understandably concerned.

“After buying CA and Symantec, Broadcom increased prices, reduced support and stopped investing in innovation,” said Tracy Woo, senior analyst at Forrester. “VMware customers would be wise to have an exit plan in place,” she cautioned.

IDC analyst Stephen Elliot sees it differently. Rather than advising VMware customers to identify exit points, Elliot believes customers should “double down” on their relationship with the vendor and move toward a more strategic business partnership.

Anyhow, the deal isn’t expected to officially close until late 2023, so companies can wait before making any…

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