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VMware CEO: Broadcom acquisition is on track

Raghu Raghuram claims VMware customers are getting more comfortable with the Broadcom acquisition while employees are ‘more or less focused’ on the job at hand

Broadcom’s $61bn acquisition of VMware is on track with the latter’s customers becoming more comfortable with the mega deal, according to VMware CEO Raghu Raghuram.

Speaking to global media on the sidelines of VMware Explore in San Francisco, Raghuram said since the acquisition was announced, VMware has been working with customers to explain the company’s product strategy and that things are “business as usual”.

“Customers are very mature – they’ve been through lots of big company transactions before and they’re seeing us execute every day,” he said. “They understand that when Broadcom makes such a big acquisition, the business case, as Broadcom stated, is in building and growing the portfolio of products we have that are serving customers.”

Brad Tompkins, executive director of VMware User Group, said the user group continues to engage with VMware about what the acquisition means for its members.

“An acquisition like this brings options,” Tompkins said. “As VMware will continue as the software division of Broadcom, this creates a complementary portfolio of solutions. Our members want to know what the details will be about the portfolio and what flexibility it will give them as VMware customers.”

Asked about customer concerns that VMware will need to address, Tompkins cited support, which is critical to keep VMware workloads operational, as well as options that customers can take advantage of in future.

“Having one company own the hardware and software side of things should unlock potential for new features and efficiencies,” he added.

Raghuram said VMware has also been allaying the concerns of its employees since the acquisition was announced.

“Our employees know what the roadmap ahead is, and we have continuous communication with our employees in understanding what’s going on, and so they’re all kept up to date all the time,” he said. “They are more or less focused on the job at hand.”

Having one company own the hardware and software side of things should unlock potential for new features and efficiencies
Brad Tompkins, VMware User Group

At VMware Explore this week, VMware has been firing on all cylinders with product updates across its entire portfolio, from the core vSphere, vSAN and NSX products to Tanzu and end-user computing, alleviating fears that some products might be prioritised over others in the run-up to the closure of the acquisition.

Besides making significant enhancements to its Tanzu portfolio, VMware also added key capabilities to vSphere, with support for data processing units (DPUs) that can help improve security and offload networking and other data processing tasks from the CPU.

It also boosted its management capabilities with VMware Aria – a rebranding of VMware vRealize and CloudHealth – which makes it easier for enterprises to manage the cost, performance, configuration, and delivery of infrastructure and cloud-native applications in a hybrid and multicloud environment.

Sid Nag, vice-president analyst at Gartner’s technology and service provider group, said VMware’s strategy has been to augment its core offerings of vSphere, vSAN and NSX with cloud-related capabilities.

“Their strategy has been to not alienate anyone and to make sure their existing customers are still hooked on VMware technology while providing a pathway to the cloud, both public and private,” he told Computer Weekly.

He added that VMware is also looking to become a player in multicloud management with Aria and Tanzu Mission Control that can manage workloads residing on non-VMware platforms.

“They say their control plane will work for other customers whether they are VMware customers or not, but I don’t believe that. Eventually they are going to find a way to push their own solutions through that mechanism,” he said.

Broadcom expects to close its acquisition of VMware by the end of its 2023 fiscal year in October 2023. Meanwhile, Raghuram said VMware is working with the Broadcom team to “help them understand the depth and breadth of our business and product portfolio”.

Read more about VMware

  • The Tanzu Application Platform will include support for Red Hat OpenShift, air-gapped installations and other capabilities to improve developer productivity and code security.
  • VMware’s CEO is confident that Broadcom will invest in growing VMware through a broad portfolio of assets that will serve its entire customer base, not just its biggest customers.
  • VMware and Alibaba have launched the Alibaba Cloud VMware Service targeted at Chinese enterprises that are looking to move their VMware workloads to public cloud, among other use cases.
  • VMware is bringing together its VMware Cloud Foundation infrastructure stack and the VMware Tanzu application platform into a single software stack that can be run in a hybrid, multicloud environment.

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