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VMware-Broadcom Deal: Analysts Opine

Analysts suggest the APAC customers of VMware should first assess their exposure. They must then ask VMware to make a commitment to some provisions in writing.

Cloud Service Provider VMware To Be Acquired By Broadcom Inc

Broadcom’s VMware acquisition of $61 Bn could open doors for the former to the world of enterprise software. This can help Broadcom diversify its portfolio, it remains to be seen how this move would affect the market and VMware customers.

Gartner’s vice president analyst, Michael Warrilow opined on the matter. He said that for VMware’s customers in Asia-Pacific, it will not be the usual business in the long run.

The APAC customers of VMware should first assess their exposure. They must then ask VMware to make a commitment to some provisions in writing. After this, VMware customers can go on making investments.

Broadcom wants to expand its reach beyond semiconductors and as a result of this decision, it has recently acquired VMware.

Tracy Woo, who is one of Forrester’s senior analysts, said that the pandemic has hit the semiconductor market hard. This is why the chipmaker company is looking forward to expanding its horizon.

As far as enterprise software goes, VMware is a core player and it has some winning management products. 

Naveen Chhabra, another senior analyst at Forrester, said that for VMware and Symantec to build synergy, Broadcom must focus on innovation and make cross-business collaboration their priority. 

The biggest problem, according to Chhabra, is Broadcom’s acquisition strategy – it hasn’t shown much centric approach in the past.

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