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Broadcom: Planning for the future with VMware

(Sponsored article)

What is VMware’s plan?

I’ve heard this question frequently from many of the customers and partners I’ve spoken to since Broadcom announced in late May that it agreed to acquire VMware.

While this may seem like a simple question, it is an important one. So, as President and CEO of Broadcom, I want to share more broadly what I’ve been telling them.

Our M&A history

Since I became CEO of Avago, Broadcom’s predecessor company, we have maintained a single, overarching vision: to create. Over the past 15+ years, we have built a leading infrastructure technology company through a series of strategic acquisitions, including helping to build and advance global communications connectivity solutions for everything on the Internet.​​​ Recently, we applied the same model to our software portfolio.

Now, with our imminent acquisition of VMware, we are taking our biggest step yet in software.

IDC’s Stephen Elliot described the deal as transformative, and I agree. It’s also important to understand how this combination differs from our previous software acquisitions of CA Technologies and Symantec Enterprise Business.

At the time of these transactions, CA Technologies and Symantec Enterprise each faced a number of business challenges and their products were lagging their competitors’ best-in-class offerings. Both companies underinvested in their businesses, resulting in execution problems and a decline in service to existing customers. We see an opportunity for both companies to significantly improve by investing in areas where they can create sustainable, long-term value for their customers.

For CA, customers told us they still value mainframes, but they want to see Broadcom invest in hardware and software upgrades. As a result, we increased resources and modernized several products in the CA product portfolio. So, today, CA’s products are both cloud-native and cloud-based.

For Symantec Enterprise, we spend a lot of time evaluating and reimagining the business around cybersecurity. We have redesigned many Symantec products on Google Cloud Platform, which makes it easier to scale and update products more regularly.

As part of Broadcom, the CA and Symantec Enterprise businesses are able to reinvest in their products and provide customers with continuous Innovative products. satisfy their needs.

So what’s VMware’s plan?

To answer this question, I want to set the level first. VMware is a pioneer in enterprise software, with many large enterprise customers using their technology and the scale required by other customers in the support channel. By combining VMware with the Broadcom Software Group, we will add a high-quality company with great technology and talent and a promising future.

While we will look for opportunities to further unlock VMware’s potential upon completion, we intend to continue building on all the great work and partnerships that define VMware today. That’s why we intend to rename and operate Broadcom Software Group as VMware, reflecting our respect and admiration for what the VMware team has built.

While we are still early in the process, at the end of this combination, we intend to apply our operational expertise and our proven commitment to ensure the necessary level of investment, product quality and customer support to drive our shared focus on innovation and continue to develop technology and public cloud environments that enable customers to work seamlessly in private. We want to offer our customers the ultimate choice and maximum flexibility.

At the same time, we have a meaningful opportunity to rely on VMware partners to support [other] [all sizes] customers. In fact, it is in our best interest to embrace all of VMware’s existing relationships, whether with hyperscalers, systems integrators or channel partners.

The reality is that Broadcom cannot grow to more than $25 billion in annual revenue without strong relationships and a record of value creation among all of our key stakeholders. Our customers and partners work with Broadcom because of our consistent execution, operational focus and innovative solutions that help them connect, scale and secure their IT. This has been our North Star for Broadcom and will continue to be in the future.

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Mr. Feijie Tan has been the President, Chief Executive Officer and Director of Broadcom and its predecessor companies since March 2006. He was Executive Chairman of Integrated Device Technology from 2005 to 2008 and President and Chief Executive Officer of Integrated Circuit Systems from 1999 to 2005. Tan also served as Vice President of Finance of Commodore International (1992-1994), Co-Founder and Managing Director of Pacven Investment in Singapore (1988-1992), Managing Director and Chief Executive Officer of Hume Industries Malaysia (1983-1988) and Earlier positions held senior management positions at PepsiCo and General Motors.

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