Tag: vmware

Broadcom has taken 2,000 of VMware’s best customers in a direct-only sales model drive.

It also told partners they would reject any deal they tried registering for a strategic account.

“If you send new opportunity registrations for strategic customer accounts, they will be turned down,” Broadcom told shocked VMware partners.

If a VMware partner’s deal with a strategic account is waiting, it “will be turned down,” Broadcom wrote. Read more…

Broadcom dropped a bombshell on its VMware partners, telling them they are all sacked and must reapply for their jobs.

The tech giant, which bought VMware for a whopping $61 billion last year, is axing all of its partner agreements with VMware resellers and service providers.

Broadcom will only let a select few join its new invite-only partner programme, which it claims will offer more profits and perks. Read more…

After securing regulatory approval in China, Broadcom has finally concluded its $69 billion acquisition of cloud-computing company VMware.

The massive deal was announced in May 2022 and is part of CEO Hock Tan’s cunning plan to enhance Broadcom’s software business.

It was not plain sailing as the acquisition encountered significant regulatory hurdles worldwide, leading to three postponements of the closing date. The last was China’s regulatory green light, which has been signed off despite the controversy over US-China chip restrictions.

The European Commission approved after Broadcom proposed remedies to address issues related to rival Marvell Technology. The UK’s Competition and Markets Authority approved following a thorough investigation. Read more…

Broadcom is to make major layoffs at VMware after its $61 billion acquisition closes

According to Business Insider, the Broadcom cuts are expected to focus on non-engineering roles.

It is speculated that layoffs could come as early as the end of this month after both companies publish their latest earnings results.

The UK regulator approved the deal last month after the merger was given the green light in Europe.

A VMware spokesperson said that while the company expected Broadcom’s acquisition of VMware to close within Broadcom’s fiscal year 2023, integration planning is not complete, and any rumors about post-acquisition plans are both speculative and premature.”

VMware had about 38,300 employees in February, while Broadcom had roughly 20,000 staffers in October, according to Securities and Exchange Commission filings. Read more…

The European Commission is worried Broadcom’s proposed $61 billion merger with VMware will be anti-competitive.

For those who came in late, the Commission’s watchdog started snuffling around the deal at the end of last year to assess the impact the acquisition may have on competition in the market for the supply of NICs, FC HBAs and storage adapters. Now, the Commission says it has some “reservations.”

“As a result of this in-depth investigation, the Commission is concerned that Broadcom may restrict competition in the global markets for the supply of FC HBAs and storage adapters by foreclosing competitors’ hardware by delaying or degrading their access to VMware’s server virtualisation software,” the watchdog said in a statement. Read more…

Broadcom and VMware have mutually agreed to postpone the completion date of their $61 billion merger by 90 days.

The original deadline was set for February 26, 2023, however, the deal is now expected to close May 26.

The takeover is the second biggest in the channel this year but has unleashed a pack of wild regulators.  In the EU and across the pond.

The EU competition watchdog said it will decide by June 7 whether it will hit the brakes on the deal or give it the greenlight. Read more…

The European Commission is concerned enough about Broadcom’s $61 billion purchase of VMware to investigate further.

Apparently, the commission is concerned that Broadcom will have such monopoly power after the deal it could turn off rivals’ access to virtualisation.

Margrethe Vestager, European Commission executive vice president in charge of competition policy said that after the merger, Broadcom could prevent its hardware rivals to interoperate with VMware’s server virtualisation software.

“This would lead to higher prices, lower quality and less innovation for customers and consumers.”

In a statement issued through a spokesperson, Broadcom said it was confident that regulators will conclude the deal will “accelerate innovation and expand choice.”

The company said it expects the deal to close before Nov. 1, 2023.

VMware CEO Raghu Raghuram said the company’s sales met expectations this past quarter, rising one percent, aided by double-digit subscription revenue growth.

Raghuram said that in the past quarter the company unveiled many new offerings across our portfolio, including VMware vSphere 8, VMware vSAN 8 and VMware Aria.

“We remain committed to and engaged in helping customers transform their businesses and unlock the full potential of multi-cloud.”

Sales for its third quarter of fiscal year 2023 came in at $3.21 billion, up from $3.18 billion a year ago. Net income for the quarter, meanwhile was down 42 percent to $231 million from a year ago when it came in at $398 million. Read more…

VMware shareholders voted to approve the pending merger with Broadcom.

Stockholders decided the merger’s fate and the compensation that Broadcom has arranged for VMware executives. It was pretty much a rubber stamp type meeting with the majority shareholder Michael Dell already pledging his 40-per cent ownership stake to voting in favour.

In all, 352.6 million shares were cast in favour of being acquired by Broadcom — 99.61 percent of the total vote — while 681,000 shares were cast in opposition and 687,000 shares were listed as having abstained.

VMware said there are 424.4 million shares of the company’s common stock that were eligible to cast votes. Of those, 353.9 million voted.

What seems to have got shareholders cross was the compensation for VMware executives, particularly the $169.4 million golden parachute that Broadcom had arranged for VMware’s top five executives, once the deal closes.

The owners of more than 4.2 million shares opposed the pay — or 1.2 percent of the total votes cast — while 348.2 million shares voted to approve the golden parachute. Read more…

VMware has announced that its takeover by Broadcom is going to plan and the tech giant is apparently “excited” by the virtual PC company’s partners.

VMware CEO Raghu Raghuram said the acquisition of his company by chipmaker Broadcom is “on track” and Broadcom understands its product portfolio and is looking at how to benefit from VMware’s channel partners.

Raghuram told the gathered throngs at VMware’s Explore conference in San Francisco that his company’s channel was a huge part of what it did. He insists that Broadcom are “super excited about using that channel in the ways that we are doing today and growing from there”. Read more…