Lenovo recently claimed that the split between Broadcom, Dell, and VMware has had significant repercussions, with Dell currently unable to sell jointly developed systems. When Dell owned VMware, the two companies were closely linked, developing VxRail, a hyperconverged appliance that integrated VMware software into Dell hardware. However, after Broadcom acquired VMware, Dell terminated its distribution agreement with Broadcom.
Lenovo sources revealed that Dell is currently out of the game for two reasons. First, a new contract with Broadcom has not been signed, preventing VMware from reselling software bundled with VxRail devices. Additionally, recent changes in orchestration code require certain specifications that Dell’s VxRail does not meet. Dell refrained from commenting on these claims, while Broadcom stated there was no new information to share at this time.
The speculation surrounding Dell’s situation has shone a spotlight on Nutanix, a company that has emerged as a competitor in the hyper-converged infrastructure market. Nutanix recently announced its third-quarter results, showcasing a 17% increase in revenue. Despite returning to losses, the company raised its forecasts for annual contract billings and cash flow, indicating a positive outlook for the future.
Nutanix executives believe that the current market conditions, combined with Broadcom’s changes, are creating opportunities for them to expand. However, the company’s share price fell following the announcement of results, reflecting the challenges of securing new business deals in the current landscape. CEO Rajiv Ramaswami highlighted the importance of flexibility and adaptability in the face of industry challenges, acknowledging the need for innovative strategies to drive success.
Article Source
https://www.theregister.com/AMP/2024/05/30/dell_vmware_vxrail_nutanix/
