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Broadcom to acquire VMware for $61B

reuters.com

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Re: Broadcom to acquire VMware for $61B

#21

Post by mbreese »

SemanticStrengh wrote: post #5

If they invested instead a mere Billion into optimizing a fork of e.g. QEMU they would destroy VMware in performance.

This isn’t about the hypervisor. This is about the enterprise sales. A bank isn’t going to run their data center on qemu, regardless of the performance. They are going to go with the company that can sell them support contracts with dedicated engineers to answer the phone.

Re: Broadcom to acquire VMware for $61B

#22

Post by nwatson »

mysterydip wrote: post #7

"to speed up its expansion into the enterprise software business." Why does a chipmaker want/need to expand into enterprise software? Shouldn't they be expanding to making different chips?

In 2021 Broadcom semiconductor revenue was $18.8B out of $27.5 billion. Broadcom has a large portfolio of enterprise software offerings.

The web page for their software offerings is at https://software.broadcom.com/ . The interesting thing you'll notice is that they do not list any specific software they offer (e.g. Symantec for enterprise security, which by the way is separate from Norton now). Rather they sell you on their ability to deliver on four specific enterprise functional needs.

They won't answer your call to buy their suite unless you're in the Fortune 500. They will try to sell you on their whole suite. They will upsell you on any new acquisition, eg VMWare.

They might renew my personal VMWare Fusion license for another year but would probably close that down soon for not being core. On the M1 I've moved on anyway to UTM.

EDIT: word choice

Re: Broadcom to acquire VMware for $61B

#23

Post by cruano »

TheRealDunkirk wrote: post #13
SSLy wrote: post #4

Oh no https://www.reddit.com/r/cybersecurity/comments/uxucz4/if_vm...

Why wouldn't you just post to the article directly, and bypass the horrible Reddit web site for the redirect?

Because the reddit post was also made by the author ? And he's responding to the comments there too?

Re: Broadcom to acquire VMware for $61B

#24

Post by true_religion »

mysterydip wrote: post #7

"to speed up its expansion into the enterprise software business." Why does a chipmaker want/need to expand into enterprise software? Shouldn't they be expanding to making different chips?

Pairing virtualization software tech with hardware chipsets that directly support it seems like a good plan.

Re: Broadcom to acquire VMware for $61B

#26

Post by xadhominemx »

nikanj wrote: post #11
mysterydip wrote: post #7

"to speed up its expansion into the enterprise software business." Why does a chipmaker want/need to expand into enterprise software? Shouldn't they be expanding to making different chips?

Because they want something that’s not affected by the chip shortage.

No, that is just incorrect. Please don’t speculate if you don’t know what you’re talking about.

Re: Broadcom to acquire VMware for $61B

#30

Post by xadhominemx »

mysterydip wrote: post #7

"to speed up its expansion into the enterprise software business." Why does a chipmaker want/need to expand into enterprise software? Shouldn't they be expanding to making different chips?

Broadcom likes to buy big companies with big moats that trade at a reasonable multiple because they have a mature growth profile. There are no more chip companies left with that profile except Qualcomm, which they tried to buy, and maybe Intel although their moat is fading. So they pivoted to software.
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