Broadcom’s acquisition of VMware, completed on November 22, 2023, marks a significant pivot in the technology landscape, particularly for enterprises reliant on virtualization and cloud computing solutions. Broadcom Inc., a global leader in semiconductor and infrastructure software solutions, now steers VMware into a new era, emphasizing the enhancement of private and hybrid cloud environments. This strategic move is poised to strengthen Broadcom’s position in the infrastructure technology sector, leveraging VMware’s robust portfolio, including VMware Cloud Foundation and a suite of services aimed at modernizing cloud and edge environments【1】.
The acquisition heralds a focused investment in VMware Cloud Foundation, the software stack pivotal for private and hybrid clouds, affirming Broadcom’s commitment to enterprise customers’ cloud modernization efforts. The integration promises to bolster cloud resilience and security, offering a comprehensive catalog of services including VMware Tanzu for application deployment acceleration, along with advanced networking and security services【2】.
Divestiture of VMware’s End-User Computing (EUC) Business
A significant aspect of this acquisition is Broadcom’s decision to divest VMware’s end-user computing (EUC) portfolio, including pivotal products like VMware Horizon and Workspace ONE. This move reflects a strategic realignment towards core cloud infrastructure technologies, sidelining the VDI and MDM segments. Broadcom CEO Hock Tan’s announcement during the Q4 earnings call of 2023 signals a deliberate shift, focusing on Cloud Foundation and its components over the loosely sold compute components of VMware’s past offerings【8†source】.
Potential Buyers and Impact on Customers
The divestiture has sparked interest among potential buyers, with investment firms like EQT AB and KKR & Co reportedly eyeing the EUC business, valued at around $5 billion. The future of Carbon Black and the EUC portfolio remains a focal point of speculation as the industry awaits concrete bids【3】.
For current VMware customers, particularly those reliant on EUC solutions, the transition phase might introduce uncertainties regarding product support, licensing, and future development directions. Broadcom’s history of streamlining product lines and customer bases post-acquisition could imply a narrowing focus that might not align with every customer’s needs【4】.
IT Vortex’s Position Amidst Changes
IT Vortex, with its expertise in the VMware ecosystem and cloud service provisioning, stands well-prepared to navigate these changes. Our deep understanding of VMware’s technologies and strategic focus on cloud and virtualization solutions positions us to adapt seamlessly to the evolving landscape, ensuring continuity and excellence in service delivery to our clients. The shift towards subscription-based licensing and the emphasis on Cloud Foundation align with our approach to providing flexible, scalable, and resilient cloud solutions.
The Shift from PCoIP to Blast Extreme
Compounding the VMware ecosystem’s evolution is the strategic shift from PCoIP to Blast Extreme. VMware’s decision to end support for the PCoIP protocol in Horizon by the end of 2025, transitioning to Blast as the primary protocol, reflects a broader industry trend towards optimizing virtual desktop infrastructure for modern, high-performance networks【5】. This move, anticipated to streamline operations and enhance user experience, underscores the importance of staying abreast with technological advancements and adapting infrastructure accordingly.
Hewlett Packard Enterprise’s (HPE) acquisition of Teradici, the creators of the PCoIP technology, further complicates the scenario. While this acquisition aims to bolster HPE’s high-performance computing and virtual workstation offerings, VMware’s shift away from PCoIP might leave existing customers seeking alternative solutions or navigating the transition to Blast Extreme.
Conclusion
The acquisition of VMware by Broadcom, coupled with the divestiture of the EUC business and the strategic shift in remote desktop protocols, represents a significant realignment within the virtualization and cloud computing domains. For IT Vortex and similar enterprises, these changes offer both challenges and opportunities. By leveraging our expertise and strategic foresight, we remain well-positioned to guide our clients through this transition, ensuring they continue to benefit from robust, secure, and efficient cloud services.
As the landscape evolves, it is paramount for customers and partners to stay informed and adaptable, ensuring that their technology strategies align with the new directions taken by industry leaders like Broadcom and VMware.
Citation Key for Articles
- Broadcom Completes Acquisition of VMware – Broadcom Inc.
URL: https://investors.broadcom.com - Broadcom’s VMware acquisition explained – Computer Weekly
URL: https://www.computerweekly.com - Broadcom to divest VMware’s EUC and Carbon Black units – The Register
URL: https://www.theregister.com - Most VMware CSPs to discontinue under Broadcom’s reign – Techzine Europe
URL: https://www.techzine.eu - VMware Announces End of Support for PCoIP in VMware Horizon – Stratodesk
URL: https://www.stratodesk.com