6. VMware’s blockbuster buyout by Broadcom
Impact rating: 7/10
Going just on the sheer number of column inches dedicated to it, VMware’s takeover by Broadcom is a shoo-in for an end-of-year roundup like this.
It was the story that kept on giving, with question marks still hanging over the fate of the virtualisation giant and its staff following the (delayed) completion of the $61bn deal last month.
Broadcom CEO Hock Tan earlier this month confirmed that Broadcom will refocus VMware on its “core business of creating private and hybrid cloud environments among large enterprises globally”.
Non-core assets – including VMware’s end-user computing and Carbon Black units – will be divested.
Read the post-acquisition wishlists of a selection of UK VMware partners here.
Broadcom’s post-VMware layoffs officially hit over 2,800 as of 30 November 2023, according to this report by Channel Futures.
Tracy Woo, principal analyst at Forrester Research, meanwhile, said in this report that onlookers should “expect massive layoffs” at the virtualisation giant.
“Don’t hold your breath on a true success story in which VMware remains unaltered and its own independent entity. Do expect price hikes, degraded support, and a VMware with a more diluted value prop,” she wrote.
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